Simula Cites Events and Completion of Turnaround Initiatives

    PHOENIX--Oct. 11, 2001--Simula, Inc. (AMEX:SMU) said today that it has completed the implementation of seven successful corporate turnaround initiatives and at the same time it is experiencing an unprecedented level of business activity in its aerospace and defense segment.
    The Company believes these factors account for recent activity in its stock and its being a leading price percentage gainer on the American Stock Exchange three times in the last 30 trading days. On September 27, 2001 and October 9, 2001, Simula was the number one leading price percentage gainer on the AMEX; on October 10, 2001, the Company was the number eleven leading price percentage gainer.
    "The completion of the major initiatives of our corporate restructuring, combined with a high level of business activity, have stabilized our business and apparently allowed the market to start to recognize the value in our Company," said Simula President and CEO, Brad Forst. "We have just marked the one year anniversary of our management change and rebuilding plan. We are now positioned to take advantage of the future -- a future that looks promising."
    On September 27, 2001, the Company said that due to recent events involving terrorist attacks on the U.S. and the anticipated military response, it was handling numerous customer inquiries from the Department of Defense and branches of the military for products produced by its aerospace and defense segment.
    "We have never entertained such a high dollar level of activity in making proposals to defense customers as in recent weeks," said Forst. "We cannot quantify at this time what amount of our bid and proposals will mature into contracts. Clearly we will not win all the business on which we have proposed. However, the level of proposal activity in our defense segment is unprecedented and should translate into significant unexpected growth in this part of our business going forward. We expect to be able to discuss the level of contract awards within the next four to six weeks."
    The Company's products in its aerospace and defense segment include crash-worthy seating systems for military helicopters, vehicle armor, body armor worn by military personnel, emergency bailout parachutes, flotation collars, and helicopter cockpit airbag systems, as well as other ancillary safety products used by military aircrews and survivability products used to protect soldiers on the ground and in vehicles.
    On September 26, 2001, the Company announced that it had completed a $25 million refinancing as an important part of its balance sheet restructuring and a significant milestone in its rebuilding efforts that commenced with the change of management in October 2000. Since October 2000, other turnaround initiatives of the Company include the change of the CEO and all other executive management; the sale of unprofitable businesses and narrowed focus to core safety technology businesses; the adoption of a new business model emphasizing strategic alliances, licensing, and monetizing technology; a material reduction in workforce and reduction in operating costs; the rationalization of research and development investment and priorities and reduction of expenditures; and balance sheet restructuring and write-offs. The Company returned to profitability in Q1 and Q2 of 2001. On September 27, 2001, the Company said it expected to be profitable in the third quarter ending September 30, 2001 before restructuring and refinancing charges associated with the recent refinancing.
    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.