Dow Jones 10265.17 +2.20 8:45 am PST, June 03, 2004  NASDAQ 1979.09 -9.89 For info, visit access.smallcapnetwork.com S & P 500 1123.69 -1.30 To be removed, please click here Russell 2000 568.38 -5.18 VOLUME 04: ISSUE 44  Feature: Force Protection - Army's Buffalo Herd grows. On the heels of Force Protection's (OTCBB: FRCP) announcement of a $9.7 million Cougar (announced as Typhoons) vehicle deal in late April, the company released details Thursday (release below) of another even larger US military sale. How does a $15.3 million sale to the US Army for 21 Buffalo Mine protected clearance vehicles grab you? It should, and hard. In the first 5 months of FY 2004, Force Protection has already announced $25 million in contracts. And there are 7 months left in FY2004. Sales for FY 2003 were $6.25 million. Not only is this deal significant on its own, the $15.3 million contract represents a follow-up deal to a previous purchase of 13 Buffalos by the Army. There's nothing sweeter than repeat business with a satisfied customer. With around 233 million shares fully diluted, the company has a market cap of roughly $50 million. Volumes have swelled on the recent announcements and, we believe, given the significant deals to date and with 7 months left in the year, the shares represent excellent value.  Continued accumulation of the shares by risk-oriented investors is strongly suggested. Playing with the Big folk... To finance these and future contracts, Force Protection did a recent financing of shares and warrants at the 20 and 24 cent levels. While we can't be sure that all of the initial 20-cent stock has hit the market, we believe that a large portion has--evidenced by heavy recent volumes. Even though there are likely still some 20 and 24-cent shares overhanging, we believe that this short-term dampening of the share price represents an excellent opportunity for investors to acquire long-term shares at prices that represent extremely reasonable values. The bottom line is that at these share price levels, investors can own Force Protection shares at roughly the same price as the financiers. Over and above the outstanding job the company has done in a short period of time to secure significant contracts, this factor should also be noted as a decent support area for the shares. As well, with a market cap of approximately $50 million, once the company books the two previous deals noted totaling $25 million, the projected price to sales ratio becomes an extremely compelling 2 to 1. We believe that the upside will come once the market attaches a decent multiple to those sales--regardless of other deals that we believe will follow--and provide decent returns for those risk-oriented investors who see the benefits now. While the math is simple, the potential is, well, compelling, to say the least. The recent contract announcements totaling $25 million should be booked by Force Protection this year as they have completion dates of year-end 2004. Color us impressed We are extremely impressed with Force Protection's progress to date. As the benefits of its vehicles is tested and validated in combat in Iraq and Afghanistan, we believe that not only will the US military remain a good repeat customer; foreign governments are likely taking note for their forces. Even if all hostilities stopped tomorrow, the viability of FRCP's vehicles in a myriad of war and insurgent situations both on the battlefield and in urban environments is quickly becoming undeniable. Other domestic and international uses for the vehicle are also real potential revenue streams, either for peacekeeping or other security related eventualities. Whatever it takes to keep the troops safe.  As Mr. Brian Green from the Office of Project Manager for Close Combat Systems out of Fort Belvoir Va., stated in the enclosed press release, the Buffalo is delivering the results expected under fire in Iraq and Afghanistan.  "We just need more of them," Mr. Green concluded.   PRESS RELEASE CHARLESTON, S.C.--(BUSINESS WIRE)--June 3, 2004--Force Protection, Inc. (OTCBB:FRCP - News) announced today that the U.S. Army has signed a contract to purchase 21 Buffalo Mine Protected Clearance Vehicles (MPCVs) from the company's Technical Solutions Group (TSG) subsidiary. The estimated value of this contract is $15.3 million with an initial release of $7.6 million. The balance of the contract is expected to be released by October 2004. In addition to the 21 Buffalo vehicles, the contract provides for the purchase of steel wheels, disc rollers and a wide range of spare parts. The estimated completion date of the contract is year-end 2004. TSG has previously supplied the Army with 13 Buffalos. "We believe that the Buffalo is the finest vehicle of its kind in the world and the Army's purchase of additional Buffalos appears to corroborate this belief," said Michael Watts, Force Protection, Inc.'s CEO. "The repeat order demonstrates the success of the vehicles deployed in the Middle East." Senator Lindsey Graham of South Carolina added, "Our men and women in uniform deserve the best equipment and training available. The Buffalo will help protect our soldiers from landmines and roadside bombs as they carry out their duties in Iraq and Afghanistan. It's an important vehicle helping our soldiers fulfill critical missions." TSG's Buffalo is a highly advanced Mine Resistant Vehicle with multiple mission configurations and specially designed field reparability. TSG has combined a proprietary capsule design with American automotive expertise to produce a vehicle with superior blast protection, visibility, load carrying capacity, interior space and parts availability. The unique technology of the Buffalo protects the vehicle and occupants against small arms fire, multiple anti-personnel mines and anti-tank mines. The steel wheels and disc rollers allow the Buffalo to be driven over and detonate anti-personnel mines without damage to the Buffalo. As a result, unusually large numbers of mines can be neutralized in a short period of time. Mr. Brian Green, from the Office of Project Manager for Close Combat Systems, Countermine Division, stationed at Fort Belvoir, Va., said, "A recent incident, involving a Buffalo vehicle, saw it run over an anti-tank mine. The blast, from the detonation, tore off a wheel and destroyed an axle on the vehicle. There were no casualties to the crew inside the Buffalo. It drove itself out of the minefield, was repaired overnight and was back in operation the following day. This is precisely the result experienced with the Buffalo vehicle when we first tested it and now it is delivering those results under fire in both Afghanistan and Iraq. We just need more of them." About Force Protection, Inc. Force Protection, Inc. manufactures and distributes vehicles that protect and save lives and property. Its subsidiary, Technical Solutions Group, Inc., (TSG) manufactures and markets military vehicles that are protected against landmines, hostile fire, and Improvised Explosive Devices (IEDs, commonly referred to as roadside bombs). Its mine and ballistic protection technology is among the most advanced in the world. The vehicles are manufactured outside Charleston, S.C.. For more information visit http://www.forceprotection.net. This release contains forward-looking statements, including, without limitation, statements concerning our business, future plans and objectives and the performance of our products. These forward-looking statements involve certain risks and uncertainties ultimately may not prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Technical complications may arise that could prevent the prompt implementation of the strategic plan outlined above. The company cautions that these forward looking statements are further qualified by other factors including, but not limited to, those set forth in the company's Form 10-KSB filing and other filings with the United States Securities and Exchange Commission (available at http://www.sec.gov). The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise, except as required by law. Contact: Force Protection, Inc. 949-374-2894 (Investor Relations) investorrelations@forceprotectioninc.com or Stearns Johnson Communications Tim Johnson, 415-397-7600 (Media) tjohnson@stearnsjohnson.com   We Value Your Feedback Got comments, questions or suggestions? Send 'em on over: Editor@smallcapnetwork.com If you wish to send a written request or inquiry, please send it to our physical address: TGR Group, LLC 3525 Del Mar Heights Rd #334 San Diego, CA 92130 Unsubscribe Here D I S C L A I M E R : The SmallCap Digest is an independent electronic publication committed to providing our readers with factual information on selected  publicly traded companies. SmallCap Digest is not a registered investment advisor or broker-dealer. 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