Exide Expects Indictment

PRINCETON, N.J.--Exide Technologies expects to be indicted or forced to pay a ``substantial fine'' in a possible plea bargain ``based upon positions the government has taken in recent discussions (over Exide's) past business relationship, under its former management'' with Sears, Roebuck & Co.

``We have cooperated fully with the government in its investigation and we still hope to resolve this matter,'' said John Van Zile, Exide's executive vice president and general counsel. ``As we have stated before, we are currently in litigation with former management to recover damages concerning some of the same issues that have been the focus of the U.S. Attorney's investigation.''

``Over the past two years, we've cleaned house here at Exide and put this company back on track,'' said Chairman and Chief Executive Officer Robert A. Lutz. ``While we are disappointed that the investigation could result in a fine, it does not detract from our accomplishments and is not deterring us from moving forward aggressively with our plans to continue taking advantage of the exciting opportunities in our key markets.''

Company declined additional comment, saying it ``is involved in ongoing discussions with the U.S. Attorney regarding this issue'' and a possible plea bargain.

In December, responding to potential charges--including alleged illegal payments made by former Exide management through the Sears/Exide relationship and the sale of used batteries that were promoted as being new--Exide management listed several key points in its defense:

· No Exide executive or manager alleged to have made any illegal payment is currently employed by the company.

· Since these and other allegations first came to light in March 1998, as a result of an investigation conducted by the Florida Attorney General's Office, Exide has replaced its board of directors, chairman and CEO, president, other members of management, as well ascompletely restructured its finance department. In addition, the company has expanded its internal audit department and has improved its quality audit program for all sales branches.

· Exide notified Sears in 1998 of the alleged payments. Exide has also brought these and the other issues raised by the Florida Attorney General's inquiry to theattention of the Securities and Exchange Commission.

· The conduct alleged in the reports would result in immediate dismissal from Exide if it occurred under the current management.

``The current management team at Exide has changed both the culture and the personnel allegedly responsible for these events,'' Van Zile said.

Exide can be found on the Internet at www.exideworld.com.