Five of Steel Partners' nominees elected to board of Point Blank; shareholder wants company to sell

By Lisa Kerner

Charlotte, N.C., Aug. 19 - Steel Partners II, LP said its nominees, James R. Henderson, Terry R. Gibson, General Merrill A. McPeak, Bernard C. Bailey and Robert Chefitz, were "overwhelmingly" elected to the board of directors of Point Blank Solutions, Inc. at the company's annual meeting held Tuesday.

According to Steel Partners, the nominees received approximately 65% of voted shares, compared with approximately 14% for the company's slate of nominees.

The results were certified upon the close of the meeting, a Steel Partners news release stated.

Steel Partners managing member Warren Lichtenstein said the vote shows that Point Blank shareholders "will not sit quietly by while shareholder value deteriorates."

"We continue to believe that Point Blank should not remain a standalone company competing on uneven terms against much larger competitors in a weakening market," Lichtenstein said in the release.

"Steel Partners is committed to maximizing stockholder value by exploring all strategic alternatives, including possible sale of all or a portion of the company on the most favorable terms available to Point Blank stockholders," Lichtenstein added.

Tuesday's meeting was the first time in three years that Point Blank has held an annual meeting.

Point Blank and Steel Partners had reached out to shareholders in the past weeks seeking their support.

Three proxy advisory firms backed Point Blank's nominees, the company said.

In turn, Steel Partners pointed to the company's "appalling" second-quarter 2008 financial results.

On April 8, Point Blank postponed its 2008 annual meeting until Aug. 19 from April 22 and said the board will explore strategic alternatives, including a possible sale of the company, with the assistance of Wachovia Securities, a prior news release noted.

The company previously rejected Steel Partners' Oct. 30, 2007 offer to acquire Point Blank for $5.50 cash per share.

Point Blank is a Pompano Beach, Fla., producer of body armor systems for law enforcement and the military.

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