PRESS RELEASE
updated 6/2/2008

For many years Cavalry Arms Corporation (“Cavalry”) has strived to manufacture and sell quality firearms to the public. We have always strived to put our experience from the field into making quality products that the average shooter can afford, while still bringing innovations to the industry. We are dedicated to providing the best possible products and customer service to the firearms market.

On February 27, 2008, agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives executed a federal search warrant on the business premises of Cavalry and on the private residence of its CEO, Shawn Nealon. We have immediately engaged legal counsel to resolve this matter with the federal government. Cavalry is confident that all its conduct has been lawful in carrying out its business activities. The Government has yet to share with the company details of the investigation or the cause precipitating the search warrant. Cavalry is cooperating with the federal investigation. To date, no accusations of wrongdoing have been filed against Cavalry or any of its employees regarding alleged illegal activity.

While we are waiting for this situation to be resolved, Cavalry Arms will remain open for business and continue operations to the best of our ability. Since we were unable to get a decision on the manufacturing variance we had asked for, we arranged for (at great difficulty and expense) and rented the equipment necessary to resume production of the CAV-15 at our licensed premises. Receivers and rifles and have begun shipping again to fill back orders. Production of firearms, firearm accessories and medical kits will continue uninterrupted throughout this situation. With the return of our computers, we are working on reconstituting our resources. Our business situation is more normal and stable than it was directly after the search and seizure.

Our continued existence as a business can be directly attributed to the overwhelming support we have received from our customers and most importantly from the shooting community as a whole. We cannot thank enough everyone who has helped us, and we appreciate your continued support.

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