Simula's Automotive Unit Announces Two New OEM Development Agreements

    TEMPE, Ariz.--Sept. 5, 2002--Simula, Inc. (AMEX:SMU) announced today that its automotive safety business has entered into two new funded product development programs. The customers include one new European OEM and one new domestic OEM.
    Such development programs are customary in the industry prior to sourcing decisions involving serial production. The customer-funded programs are focused on the feasibility of integrating Simula's Advanced Head Protection System (AHPS) with its innovative, patented Distributed Charge Inflator (DCI(TM)). These efforts represent initial steps towards potential future production of the combined AHPS/DCI module assembly for customers.
    The Company previously announced its first DCI customer with production planned for late 2003.
    The DCI is unique because it is contained almost entirely within the airbag. This packaging concept dramatically reduces the overall airbag assembly size and weight, while significantly improving performance as compared to competing gas generator systems for similar applications.
    The Company also announced that it recently completed a rigorous qualification test program for the DCI based upon requirements adopted by the United States Council for Automotive Research (USCAR) organization (http://www.uscar.org). This qualification establishes the maturity and durability of the DCI design in meeting the requirements of several different OEMs.
    In a separate matter, the Company today announced a change in its manufacturing strategy. The Company said that it intends to transition all US-based airbag module production to a contracted manufacturer. The change will affect a number of Phoenix-based employees. The change will reduce production costs and increase competitiveness. The division anticipates that the relocation will be completed in the fourth quarter of this year. The Company retains its headquarters, technology center, sales, and engineering staff at its present Phoenix, Arizona location, as well as its volume-manufacturing site near Newcastle, United Kingdom.
    "With the DCI, we continue to expand our technology and innovative reputation within the commercial automotive customer base," said Brad Forst, President and CEO. "At the same time, we are rationalizing our cost structure in this very competitive business," he said.
    As previously announced, Simula expects to incur one-time severance charges in the third quarter in connection with its on-going cost reduction programs.
    Simula designs and makes systems and devices that save human lives. Its core markets are military aviation safety, military personnel safety, and land vehicle safety. Simula's core technologies include inflatable restraints, energy-absorbing seating systems, advanced polymer materials, lightweight transparent and opaque armor products, personnel protective equipment and emergency bailout parachutes. 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 expected orders, revenues and profits. Factors pertinent to the Company's ability to meet expectations include future new product orders, if any, and, the success of continued cost saving initiatives. Factors pertinent to product sales include OEM customer needs, schedules, and budgets in a very competitive industry. 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.