Force Protection, Inc. (NASDAQ: FRPT), a leading designer, developer and manufacturer of survivability solutions and provider of total life cycle support for those products, today announced that it had determined, based upon its changing mix of business and related infrastructure requirements, to initiate a significant program of operational realignment and overhead reductions.

The Company expects to substantially complete this program in the first half of 2010, and to create an annualized run rate for cost savings of at least $40 million. The initiative is designed to align the company’s cost structure to current and planned vehicle production and to improve operational efficiencies in the area of Total Life Cycle Support.

Included in the Company’s cost reduction program is a net reduction of approximately 10% of its current workforce of 1200 employees and contractors. Reductions in manufacturing and engineering headcount are expected to be partially offset by an increase in capability in the Company’s Kuwait facility and increases in sustainment and supply-chain management. The Company noted that it anticipates a third-quarter severance-related charge of approximately $2 million. As part of its capability expansion, the Company is streamlining its spares logistics functions in order to better service its customer, reduce lead times, and leverage existing resources. Included in this streamlining are proposed freight management changes that will yield significant cost savings and improved customer response times. The Company also noted that it is pursuing significant savings opportunities in general corporate functions such as finance, consulting, legal and human resources, facilities management, travel, insurance, and other costs.

Michael Moody, Chief Executive Officer of Force Protection, commented, "As the level and mix of our business activities change, we will, as I have stated before, align our business and cost structure accordingly. Over the last several quarters, our vehicle deliveries have decreased while non-vehicle deliveries of spares, modernization, field services and training have increased. Our Total Lifecycle Support operations have grown exceptionally over the past year and we have increased our capability in that area as well as transferred a number of our employees to our Kuwait facilities. We will continue to build vehicles, develop new vehicles and retain vehicle manufacturing capacity as is necessary to fulfill the ongoing demand for our Buffalo route-clearance vehicles, additional Cougar-based vehicles and new products."

Mr. Moody continued, "The cost reduction initiatives we are announcing today are necessary to ensure our ongoing financial strength as we transform the company from a high volume truck manufacturer to a highly skilled, advanced survivability solutions provider of innovative products and solutions around the world."

About Force Protection, Inc.

Force Protection, Inc. is a leading American designer, developer and manufacturer of survivability solutions, predominantly blast- and ballistic-protected wheeled vehicles currently deployed by the U.S. military and its allies to support armed forces and security personnel in conflict zones. The Company’s specialty vehicles, the Cougar, the Buffalo,the Cheetah and the Ocelot, are designed specifically for reconnaissance and urban operations and to protect their occupants from landmines, hostile fire, and improvised explosive devices (IEDs, commonly referred to as roadside bombs). The Company also is the developer and manufacturer of ForceArmor™, an armor package providing superior protection against explosively formed projectiles (EFPs), now available for a wide range of tactical-wheeled vehicles. The Company is one of the original developers and primary providers of vehicles for the U.S. military’s Mine Resistant Ambush Protected, or MRAP, vehicle program.

For more information on Force Protection and its vehicles, visit www.forceprotection.net.

Safe Harbor Language

This press release contains forward looking statements that are not historical facts, including statements about its beliefs and expectations. These statements are based on beliefs and assumptions of Force Protection’s management, and on information currently available to management. These forward looking statements include, among other things: the ability of Force Protection to implement the Cost Reduction Program and realize the anticipated cost savings, increasing growth and demand for the Company’s Total Life Cycle services, increasing capability and opportunities for the Kuwait facility growth and demand for Force Protection’s vehicles, including the Buffalo vehicle and related deliveries of the Buffalo vehicle; the rate at which the Company will be able to produce these vehicles; its expected work completion dates for the vehicles and the Company’s ability to meet current and future contract requirements; and the Company’s expected financial and operating results, including its revenues and cash flow, for future periods. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. Examples of these factors include, but are not limited to, the ability to effectively manage the risks in the Company’s business; the ability to develop new technologies and products and the acceptance of these technologies and products; the ability to obtain and complete new orders for its vehicles and products; the Company’s ability to identify and remedy its internal control weaknesses and deficiencies; and other risk factors and cautionary statements listed in the Company’s periodic reports filed with the Securities and Exchange Commission, including the risks set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, as updated in the Quarterly Report on Form 10-Q for the period ended June 30, 2009.