DAC Technologies Announces 1st Quarter 2010 Results


LITTLE ROCK, AR--(Marketwire - May 18, 2010) -  DAC Technologies (OTCBB: DAAT) today announced results for the quarter ending March 31, 2010. The Company reported a net loss of $73,826 on net sales of $2,006,676, as compared to net income of $184,299 on net sales of $3,533,456 for the same period in 2009.

David A. Collins, Chairman and CEO, stated, "During the first and second quarters of 2009, the Company experienced significant sales increases, due in part to the spike in gun and gun related products resulting from political concerns regarding gun controls. In the later part of 2009 and into 2010, we have seen this upswing reverse itself, and sales of guns and related products return to more normal levels. In addition, we benefitted in the first quarter of 2009 from increased orders from our major customers whose inventory levels had dropped significantly during the fourth quarter of 2008. During the fourth quarter of 2009, our customers' inventory levels were high as retail sales were off in gun accessory areas as concerns about gun control eased, therefore reducing their need to order products during the first quarter of 2010. Because of these issues, we were anticipating sales to be down in the first quarter this year, although not quite to the extent they were. We expect this trend to continue into the second quarter of 2010 as we must anniversary large sales increases from 2009. These increases started easing in June 2009 and the Company did not experience increases in the third and fourth quarters of 2009. We expect sales to return to normal in the third and fourth quarters of 2010. The Company has not lost any customers and, in fact, has new products going into stores for the fall hunting season."

About DAC:
DAC Technologies Group International, Inc. is an outsource manufacturer of high quality, reasonably priced security safes, gunlocks, gun cleaning kits, sporting goods, household cleaning products and various hardware items. DAC distributes its products through mass merchandisers such as Wal-Mart and Kmart, and sporting goods retailers and distributors such as Cabela's, Acusport, Jerry's, RSR, Maurice, Academy Sports, Sports Authority and others. DAC also provides gunlocks to OEM gun manufacturers such as Glock, SigArms, Savage, Weatherby, as well as others. Also, DAC's products are distributed through catalog companies.

The Private Securities Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in written statements to be made) contains statements that are forward looking, such as those relating to consummation of the transaction, anticipated future revenue of the Company's and success of current public offerings. Such forward looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward looking statements.

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