Simula Comments On Continuing Strength in Second Quarter

    PORTLAND, Ore.--June 21, 2001--Simula, Inc. (Amex: SMU),-- Speaking today at the RedChip(TM) Investor Conference, Simula President and CEO, Brad Forst, said that as a result of a continuing program to cut costs and focus on the Company's core competencies, he anticipates a positive second quarter and fiscal 2001.
    The positive second quarter results continue to build on the strength of the first quarter, when the Company reported earnings available for shareholders of $322,000 or $.03 per diluted share. Excluding restructuring charges in the first quarter, earnings would have been $632,400, or $.05 per diluted common share.
    The Company said that there will be additional charges in the second quarter for rightsizing, asset dispositions, and refinancing efforts as the Company continues restructuring. Nevertheless, said Forst, the Company should report net income from operations in the second quarter.
    "We are satisfied with the progress we are making with continuing operations, but our restructuring efforts will continue until we have rid ourselves of the legacy of our discontinued businesses and the related debt," said Forst.
    Given the backlog associated with orders from military and automotive customers, Forst said he has confidence in growing revenues and EBITDA. More difficult to gauge, he said, is net income which is correlated to the Company's success in deleveraging its balance sheet.
    "The primary focus of Simula's financial recovery is debt restructuring through refinancing and debt reduction plans," said Forst.
    The Company said that it expects to complete a refinancing in the third quarter, which will be the first step in balance sheet restructuring efforts.
    The Company said that its newly focused operations show continuing strength. Forst pointed to Simula's continuing leadership in automotive safety. The Company recently announced that it will become a direct supplier to BMW for its inflatable head and neck protection system, ITS(R). In a separate development, the Company recently announced the commercialization of a revolutionary new airbag inflator.
    The other major division of the Company's business, aerospace and defense, has also captured important new market opportunities. Forst noted that the introduction of three products in 2000 and 2001 will enhance this consistently growing and profitable business. Forst also noted the significant barriers to entry in the aerospace and defense segments of its business, and anticipated growth in defense spending by the U.S. Government, as positive indicators for this segment.