DAC Technologies Announces Second Quarter Results

LITTLE ROCK, AR -- (Marketwire) -- 08/16/10 -- DAC Technologies (OTCBB: DAAT) today announced results for the quarter ending June 30, 2010. The Company reported a net loss of $125,652 on net sales of $2,036,926 for the three month period ended June 30, 2010, as compared to net income of $128,566 on net sales of $3,143,041 for the same three month period in 2009.

David A. Collins, Chairman and CEO, stated, "There are two main factors that contributed to the Company's loss. First were the large sales increases experienced by everyone, including DAC, in the firearm and firearm accessory market during the first six months of 2009. This was due to political concerns over possible gun controls that might be initiated by the current Presidential administration. These concerns began to ease in the second half of 2009 and sales returned to more normal levels. As expressed in the previous release, we expected the sales decreases to ease in June 2010 and, in fact, this did happen as the Company's sales in June 2010 were equal to 2009. We expect sales during the second half of 2010 to meet or exceed sales during the last half of 2009, returning the Company to profitability. Secondly, there was a new merchandising strategy initiated by Wal-Mart in 2008 and 2009 that involved vendor consolidation, item (SKU) reductions, use of nationally recognized brand names, and vendors working on lower gross margins. DAC Technologies was fortunate to be one of the selected vendors but the Company lowered its gross margins, has licensed the Winchester® brand name for its entire gun cleaning and gun accessory items, opened a Bentonville, Arkansas office and a California distribution center, all in the effort to be the best vendor possible. DAC believes its strategy to be the correct one as evidenced by the Company having two Holiday promotions this year and Wal-Mart adding one additional gun cleaning kit in July 2010 as a permanent item to the modular."

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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