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BREED to Acquire AlliedSignal's Safety Restraints Business

2 September 1997

BREED to Acquire AlliedSignal's Safety Restraints Business

    LAKELAND, Fla. and MORRISTOWN, N.J., Sept. 2 -- BREED
Technologies, Inc. and AlliedSignal Inc. announced
today that they have reached agreement for BREED to acquire for cash
AlliedSignal's automotive safety restraints business.
    AlliedSignal Safety Restraint Systems has annual sales in excess of
$900 million.  It employs 7,742 people in 14 plants in seven countries.  In
the U.S., it is the largest supplier of seat belts and third largest supplier
of air bags.
    Johnnie Cordell Breed, Co-Chairman and Chief Executive Officer of BREED
Technologies, said, "BREED is widely recognized as an emerging mega-supplier.
The acquisition of AlliedSignal's automotive safety restraints group
demonstrates our continued focus on strengthening our market position in all
areas of automotive safety, including seat belts.  This strategic combination
of our businesses makes BREED an even more formidable global competitor in
fully integrated occupant safety systems.  BREED is the largest producer of
steering wheels in the world.  With AlliedSignal's seat belts, BREED will now
be the largest supplier of seat belts in the United States.  In fiscal year
1996, BREED's sales were $432 million.  Our sales doubled at the end of fiscal
year 1997, and will double again during fiscal year 1998."
    "This transaction is another important step in reshaping our Automotive
business," said John W. Barter, President of AlliedSignal Automotive.  "It
will allow us to focus on businesses that have strong market positions and
outstanding growth potential.  These include Turbocharging Systems and Truck
Brake Systems, both global market leaders, and on our new Automotive Products
Group, which includes Friction Materials, Filters & Spark Plugs, and
Aftermarket Products."  AlliedSignal Automotive's popular branded aftermarket
products include Prestone(R) products, FRAM(R) filters, Autolite(R) spark
plugs, and Bendix(R) and Jurid(R) friction materials.
    The acquisition is expected to be completed following regulatory review
and compliance with other legal requirements in the various countries where
these businesses operate.
    Headquartered in Lakeland, Florida, BREED Technologies is one of the
world's leading suppliers of automotive occupant safety systems and steering
wheels, providing its global customers with research and development,
engineering and manufacturing support through its more than 60 facilities in
13 countries.  BREED employs 11,366 people worldwide.  Information about BREED
 and its products is available on the Internet at http://www.breedtech.com/.
    Based in Morris Township, New Jersey, AlliedSignal Inc. is an advanced
technology and manufacturing company serving customers worldwide with
aerospace and automotive products, chemicals, fibers, plastics and advanced
materials.  Its 1996 sales were $14 billion.  After the divestiture, the
company, a component of the Dow Jones Industrial Average, will have an
employment level of some 70,000 people at 300 facilities in 40 countries.
Information about AlliedSignal is available on the Internet at
 http://www.alliedsignal.com/.

SOURCE  AlliedSignal Inc.