Exide Technologies Secures New, Full Service Partnership With Tesco, Britain's Leading Retailer

PRINCETON, N.J., May 21 Exide Technologies, the global leader in stored electrical-energy solutions, has secured a three-year sole supplier agreement for motive power products and services with Tesco, the largest retailer in the United Kingdom.

Tesco, with more than 900 retail outlets worldwide and more than 700 locations in the UK, stocks more than 40,000 product lines, including food and beverages; household items; garden products; toiletries; domestic electrical goods; clothes; and fuel. Founded in 1924, Tesco is the country's market leader with a 16 percent market share.

The exclusive agreement calls for the Exide Technologies Motive Power Global Business Unit to supply a total stored energy system solution for Tesco's fleets of electric forklift trucks and warehousing equipment. It includes battery products and services to manage the Tesco fleets for maximum efficiency and cost effectiveness.

The Exide Motive Power Group, based in Manchester, England, produces a complete line of lead-acid batteries for fork lift trucks and other vehicles for the materials handling industry, as well as batteries for wheelchairs, scissor-lifts, access platforms, electric cleaning machines and airport utility vehicles.

Since 1977, Exide has supplied Tesco's 24 regional distribution centers in the UK with batteries, chargers and ancillary equipment under the Chloride Motive Power brand.

To provide Tesco with a comprehensive stored electrical-energy solution for its electric fork lift truck and warehousing equipment fleets, Exide developed engineering and administrative resources that completely rebuilt the Tesco battery fleet database. During the next three years, Exide also will manage the database to control Tesco's battery fleet and its inventory of replacement batteries. In addition, Exide's new Charger Management System will provide electronic monitoring and control of battery charging operations. Finally, Exide has installed state-of-the-art battery transfer systems to support the fleets at Tesco distribution centers throughout the UK. Exide designed and installed the systems to meet Tesco's projected expansion.

"Exide has reinforced its alliance with Tesco by being able to provide consistently high quality products and services worldwide, wherever Tesco has expansion plans," said Neil Bright, president of the Exide Technologies Motive Power Global Business Unit. "In working with Tesco, Exide has developed and launched innovative, technologically advanced solutions to help streamline our customer's supply chain operations."

The Tesco/Exide partnership in the UK is extending into new growth markets in Central Europe and Asia. Tesco has expanded its operations into the Czech Republic, Hungary, Poland, the Slovak Republic, South Korea, Taiwan and Thailand. Exide is already supplying a battery transfer system for Tesco's first dedicated regional distribution center outside the UK. This warehouse facility, currently under construction in Hungary, also will be the first outside the UK to benefit from Exide's newly developed Charger Management System.

"Tesco's strategy is to continue to increase its market share by continuously reducing prices, offering the best value and providing more choice and convenience for its customers," said Craig H. Muhlhauser, Chairman and CEO of Exide Technologies. "Exide's alliance with Tesco manages the energy use of the retailer's distribution center fleet for maximum efficiency and productivity, allowing Tesco to focus on its customers."

About Exide Technologies:

Exide Technologies is the world's largest industrial and transportation battery producer and recycler with operations in 89 countries.

Industrial applications include network-power batteries for telecommunications systems, fuel-cell load leveling, electric utilities, railroads, photovoltaic (solar-power related) and uninterruptible power supply (UPS) markets; and motive-power batteries for a broad range of equipment uses, including lift trucks, mining vehicles and commercial vehicles.

Transportation uses include automotive, heavy-duty truck, agricultural, marine and other batteries, as well as new technologies being developed for hybrid vehicles and new 42-volt automotive applications. The company supplies both aftermarket and original-equipment transportation customers.