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Special Devices Announces Amendment to Merger Agreement

29 October 1998

Special Devices Announces Amendment to Merger Agreement and New Special Stockholders' Meeting

    NEWHALL, Calif.--Oct. 28, 1998--Special Devices Inc. , a Newhall-based company that designs and manufactures pyrotechnic devices for the automotive and aerospace industries, Wednesday announced that as a result of the financial market disruptions since the Special Meeting of Stockholders held on Sept. 23, 1998, the board of directors has approved an amendment to the Agreement and Plan of Merger entered into on June 19, 1998, providing for the acquisition of Special Devices by a newly formed company organized by J.F. Lehman & Company Inc.
    The amendment to the Agreement changes the cash consideration from $37 to $34 per share for the shares to be acquired by the Lehman affiliate.
    The Amendment must be approved by the stockholders of Special Devices before it can become effective. A proxy statement containing information about the Amendment and a new Special Meeting of Stockholders will be filed with the Securities and Exchange Commission in the near future. The new proxy statement will be available for stockholder review when it is filed with the SEC.
    Special Devices is a nationally recognized leader in the design and manufacture of pyrotechnic devices used by the automotive industry for initiators in airbag systems, and by the aerospace industry in tactical missile and crew escape systems. The company operates facilities in Newhall, Mesa, Ariz., and Downers Grove, Ill., and employs more than 1,300 people.
    Special Devices has headquarters at 16830 W. Placerita Canyon Road, Newhall, Calif. 91321; 805/259-0753.