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BREED Proposes Internal Restructuring

28 September 2000

BREED Proposes Internal Restructuring

    LAKELAND, Fla.--Sept. 28, 2000--BREED Technologies, Inc. ("BREED") (OTC:BDTTQ), one of the world's largest automotive occupant restraint suppliers, announced today that it intends to file an amended Plan of Reorganization in connection with its pending Chapter 11 bankruptcy proceeding, which provides for an internal restructuring of its business and a nearly $1 billion reduction in the company's outstanding debt. The Company also announced that John Riess, a member of BREED's Board of Directors and the former Chairman of the Board and Chief Executive Officer of Gates Rubber Company, has been named the company's Chief Executive Officer replacing Johnnie Cordell Breed.
    In commenting on the proposed plan Riess stated, "This filing is the beginning of the end of a long, extensive process to find a solution to BREED's financial difficulties." BREED had previously filed a proposed plan, which provided for either an internal restructuring or a sale to a third party. Riess noted that, "While BREED's Board of Directors considered a number of options, including the sale of the business to several interested third parties, it was ultimately determined that continuing as a `stand-alone' enterprise with substantially reduced debt is in the best interests of BREED, its customers, its creditors and its employees." The Company did not comment further on the specifics of the Plan stating that the entire document will be available for review when it is filed with the United States Bankruptcy Court in Delaware within the next few days.
    The Company further announced that the Company's Vice Chairman, President and Chief Operating Officer, Charles J. Speranzella, Jr., will be leaving the company. The Board of Directors and Mr. Riess have requested that Mr. Speranzella remain with the Company for a period of transition. "Chuck's experience and familiarity with BREED's business and its customers will be invaluable to making a smooth transition," said Mr. Riess, who added that no additional management changes are foreseen for the immediate future.
    The Company expects that once the adequacy of the Disclosure Statement which accompanies the Plan of Reorganization is approved by the Bankruptcy Court, which is expected to take place in mid-October, it will take approximately two months for the bankruptcy process to be completed.