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BREED Anticipates Second Quarter Loss

21 January 1999

BREED Anticipates Second Quarter Loss; Appoints New Chief Financial Officer


    LAKELAND, Fla.--Jan. 21, 1999--BREED Technologies, Inc. , a worldwide leader in automotive occupant safety systems, today announced that the company expects to report a net loss in excess of 85 cents per share for the second quarter ended December 31, 1998. BREED will release its full second quarter results on or before February 15, 1999.
    BREED also announced today that it is in the process of conducting a national search for a new chief financial officer and that it has appointed J.F. (Jack) Gallagher to serve as Chief Financial Officer of BREED on a transitional basis. Mr. Gallagher is a partner of Tatum CFO Partners, LLP, a partnership of career chief financial officers whose mission is to provide highly experienced financial leadership and "hands on" management to growth oriented companies. Mr. Gallagher will lead a team of Tatum CFO Partners in a program to strengthen BREED's worldwide financial organization, including treasury, financial planning, analysis and controls, and information systems.
    Mr. Gallagher's career spans over thirty-five years and includes broad-based experience in executive, financial, accounting and consulting positions. His previous posts include those of Chief Financial Officer for Phillip Crosby Associates and Alexander Proudfoot PLC, as well as Vice President and Corporate Controller of Black and Decker. Mr. Gallagher also spent five years with Price Waterhouse in New York City.
    Mr. Gallagher replaces Frank Gnisci who has left the company to pursue other opportunities.

Caution on Forward-Looking Statements
    Statements herein regarding the estimated net losses for the second quarter ended December 31, 1998, constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. With respect to the estimated net losses, management has made certain assumptions in calculating the expected operating losses, which may change. Statements herein regarding the Company's performance in future periods are also subject to risks relating to, among other things, difficulties in integrating acquired businesses, deterioration of relationships with material customers, possible significant product liability claims, decreases in demand for the Company's products, and adverse changes in general market and industry conditions. Management believes these forward-looking statements are reasonable; however, undue reliance should not be placed on such forward-looking statements, which are based on current expectations.