Simula Cites Strength in Aerospace and Defense Segment -- Demand for Safety Products Supports Revenue and Earnings Growth; Company Expects Positive Q3

    PHOENIX--Sept. 27, 2001--Simula, Inc. (AMEX: SMU) said today that it sees continuing growth in revenue and earnings in 2001 for Simula, despite the contrary market trend for small cap and technology companies generally. The Company also said that due to the recent events involving terrorist attacks on the U.S. and the anticipated military response, the Company has been handling numerous customer inquiries from the Department of Defense and branches of the military with respect to the products produced by its aerospace and defense segment.
    Brad Forst, President and CEO, indicated that discussions with customers could result in accelerated delivery of products and new contracts adding to Simula's already strong backlog. "Although these inquiries are occurring late in our fiscal year, we may see a positive impact on our business in the fourth quarter. Previous guidance for 2001 indicated a revenue range of $95-100 million. We now believe we will be in the upper end of this range," said Forst.
    Customers inquiries have focused on Simula's safety products used by military aircrew and survivability products used to protect soldiers on the ground and in vehicles. The Company declined to give further specifics about the customer inquires or orders due to the sensitive nature of the use of these products by its customers.
    The Company announced a comprehensive restructuring plan following a change of management in late 2000. The Company returned to profitability in the first and second quarters of 2001, despite one-time charges incurred for write-offs of assets, plant consolidation, workforce reductions and other actions. Forst said he expected the Company to be profitable in the third quarter ending September 30, 2001 before restructuring and refinancing charges associated with a refinancing completed on September 26, 2001.
    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, transparent and opaque armor products, personnel protective equipment and parachutes, and crash sensors. More information is available at http://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 orders, revenues and profits. Factors pertinent to the Company's ability to meet expectations include Congressional appropriations, military orders and, the success of continued cost saving initiatives. Factors pertinent to product sales include customer needs, schedules, and military procurement budgets. 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.