Simula, Inc. Completes $25 Million Refinancing

    PHOENIX--Sept. 26, 2001--Simula, Inc. (AMEX: SMU) today announced that it has completed a $25 million financing with Allied Capital Corporation , a $2 billion portfolio lender with offices in Washington DC, New York and Chicago.
    Simula said it is enthusiastic about its new relationship with a credible, nationally known lender that supports its business plan, and with whom it will work to create a long-term relationship. The loan refinances the Company's existing $20 million senior notes with Levine Leichtman Capital Partners.
    US Bancorp-Libra Securities, New York, acted as investment banker for Simula. Batchelder & Partners, Inc., San Diego, assisted Simula in the transaction and has acted as financial advisor to the Company in connection with its on-going restructuring.
    In connection with the financing the Company also modified its existing $17 million credit facility underwritten by the CIT Group, Inc., to increase its near-term borrowing base and credit availability. This will provide the Company increased liquidity.
    The $25 million in senior notes are due December 31, 2003. No warrants or other equity features are included as part of the transaction.
    Brad Forst, President and CEO, remarked, "This financing represents an important step in a process of an overall financial restructuring. Over the past twelve months we have made substantial improvements in revenues and margins and reductions in costs. These operating improvements in combination with the stable capital structure will allow us to focus, and should have a positive impact on the future. This new financing with Allied Capital represents a strong lending relationship with a long-term financial partner whose interests are aligned with management's and our shareholders'."

    About Simula

    Simula designs and makes systems and devices that save human lives. Its core markets are aerospace and defense systems, and automotive safety systems. Simula's core technologies include inflatable restraints, energy-absorbing seating systems, advanced polymer materials, lightweight transparent and opaque armor products, personnel protective equipment and sealed parachutes, and crash sensors. For more information, go to 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 its new lending relationship, its ability to execute favorable asset sales, and its ability to enter into longer term financing favorable to the Company. Factors pertinent to the Company's ability to meet its current financial projections include its leveraged status, the level and cost of debt, the nature of debt covenants, the reduction of fixed expenses, and the maintenance of consistent earnings growth. 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.