DEFENSE TECHNOLOGIES INTERNATIONAL CORP.

DEFENSE TECHNOLOGIES INTERNATIONAL CORP. designs, manufactures, and integrates automated production equipment and systems. These systems are used to manufacture, test, or package a variety of industrial and consumer products. The company's strategy focuses on developing, marketing, and providing complementary technologies and capabilities to offer customers integrated processing, assembly, testing, and packaging systems for their products. DEFENSE TECHNOLOGIES INTERNATIONAL CORP. is a Delaware corporation, organized in January 1993. It is the successor to Peer Corporation, Detroit Tool Group, Inc. ("DTG"), and Detroit Tool and Engineering Company ("DTE"). Peer Corporation was organized in June 1992 to acquire the Peer Division of Teledyne, Inc. and the stock of DTG, which was the sole stockholder of DTE and Detroit Tool Metal Products Co. In fiscal 2002, the company reorganized its operations into four business segments: Material Processing, Precision Assembly, Assembly and Test, and Packaging Systems. These also represented its reportable segments during fiscal 2002. In July 2003, DEFENSE TECHNOLOGIES INTERNATIONAL CORP. announced the closure of its Precision Assembly segment manufacturing facility in Buffalo Grove, Illinois. The manufacturing operations of this segment were transferred to the Material Processing segment's Lebanon, Missouri facility. An engineering, sales, and service office will remain in Illinois to serve Precision Assembly's customers. The principal executive offices are located at 907 West Fifth Street, Dayton, Ohio 45407.