Simula Reduces Workforce as Part of Ongoing Restructuring

    PHOENIX--March 9, 2001--Simula, Inc. (AMEX: SMU) announced today that it completed a Company-wide reduction in workforce as part of its ongoing restructuring.
    The reduction represents about 60 job positions or 7.5% of its worldwide workforce. In addition, about 40 budgeted new positions will not be filled and certain facilities will be consolidated.
    The Company emphasized that the downsizing represents one of a series of initiatives to reduce costs, and is not a layoff due to a slowdown in its business or general economic conditions.
    On February 21, 2001, the Company said that it anticipated it would return to profitability in 2001 and that its ongoing restructuring would include facility consolidations and workforce reduction. The restructuring elements include exiting unprofitable businesses, eliminating redundancies across divisions, increasing operational efficiencies, and narrowing the scope of research and development efforts and expenditures.
    "The change in management in October was the first step in rebuilding the business," said Brad Forst, President and CEO. "The second step was the write-off of unproductive assets resulting in a one-time, principally non-cash charge in the fourth quarter of fiscal 2000."
    "This downsizing represents a third step in implementing our new business plan. Another big step that remains is to restructure the Company's debt-heavy balance sheet," said Forst.
    Employee terminations occurred across virtually all of the Company's six operating divisions and corporate office. The Company operates divisions in three U.S. states and in the United Kingdom. The Company has approximately 750 employees.
    The Company also said that as part of the restructuring it will consolidate the operations of its Sedona Scientific Division located in Sedona, Arizona into operating divisions located in Phoenix, Arizona. The Sedona Scientific Division works on the development of the Company's crash sensors. The division's intellectual property, assets, and some personnel will transfer to a Phoenix location and the Sedona facility will be closed.
    The Company also said that its newest operating division, Simula Polymer Systems, will suspend its planned ramp-up for manufacturing operations to concentrate on the licensing of the Company's patented high-impact transparent polymer technology. The Company previously announced two major licenses for this technology.
    "Maximizing profits through a licensing strategy is part of a new business model for the Company and our polymer technology fits well into this concept," said Forst.
    Finally, the Company said its corporate offices will occupy less space and it will reduce its leasing costs.
    The Company says it anticipates one-time charges in the first quarter for severance payments. "Nevertheless," said Forst, "net of any such charges, we expect first quarter income from operations will be positive."
    Simula is a diversified technology company that designs and manufactures occupant safety systems and devices engineered to safeguard human life in a wide range of air, ground and sea transportation vehicles. The Company operates in two principal markets that are aligned with its core technologies: aerospace and defense systems, and automotive safety systems. The Company's core products and technologies include inflatable restraints, energy absorbing seating systems, advanced polymer materials, transparent and opaque armor products, personnel protective equipment and parachutes, and crash sensors. Additional information can be found at www.simula.com.

    Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements that involve risks and uncertainties that may cause the Company's actual experience to differ materially from that which is anticipated. These forward-looking statements include statements about expected revenues, cost reductions, net income and operating income in 2001; the likelihood of a material reduction in the Company's level and cost of debt; and the Company's ability to license certain technologies. Other factors pertinent to the Company's ability to meet its current financial projections include its leveraged status and the level and cost of debt and the nature of debt covenants; the reduction of fixed expenses; the ability to maintain margins or grow volumes in its automotive segment; the likelihood of success in building strategic alliances with large prime contractors and first tier suppliers to OEMs; the competition and competitive pressures on pricing including from first tier supplier partners; and the amount of resources committed to independent research and development from time to time. Actual results may differ materially from those projected. Additional risks include those described herein and in the Company's registration statements and periodic reports filed with the U.S. Securities and Exchange Commission.