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Exide Responds to Sears Counterclaim in Lawsuit

21 November 1999

    READING, Pa. -- On Friday, Exide Corporation responded to inquiries 
concerning a lawsuit it filed against Sears, Roebuck and Co. on September 17, 
1999 in the Circuit Court of Cook County, IL.

    Exide seeks damages in an amount not less than $15 million for batteries
Exide shipped to Sears, and a return of bonuses and credits Exide paid to
Sears.

    In a counterclaim filed the previous week, Sears alleges Exide made cash payments
of $20,000 or more to a Sears employee.  According to the Sears counterclaim,
the payments were made after Sears awarded Exide an initial supply agreement.
Sears states in its counterclaim that the employee did not have the authority
to select battery vendors.

    Exide denies that any current member of its senior management team,
manager, or agent of the company made or authorized the alleged payments.

    John R. Van Zile, Exide's vice president and general counsel, said,  "In
my opinion, the Sears counterclaim is an attempt to divert attention from the
fact that Sears owes Exide more than $15 million."

    Van Zile also noted that Sears raised these issues only after Exide sued
Sears and more than a year after Exide disclosed to Sears that the payments
might have been made by former Exide managers.

    In addition, Exide management also said that it has resolved customer
claims concerning the quality of its batteries at no additional cost to Sears
or its customers.  Exide management said it would vigorously pursue its
lawsuit against Sears.

    Exide Corporation, with annual revenues of approximately $2.4 billion and
operations in 19 countries, is the world's largest manufacturer of automotive
and industrial lead-acid batteries.  Further information about Exide's
businesses and products is available at http://www.exideworld.com.