Simula Inc. Completes Placement of Convertible Preferred Stock

31 March 1999

Simula Inc. Completes Placement of Convertible Preferred Stock

    PHOENIX--March 30, 1999--Simula Inc. Tuesday announced that it has placed 7,500 shares of 6 percent Series A Convertible Preferred Stock with a private investor for net proceeds of $7.5 million.
    The Series A Stock is convertible into shares of Common Stock of the company at a conversion rate of 101 percent of the average closing price during a measurement period preceding conversion up to an initial maximum conversion price cap of $8.60 per share.
    After 12 months and annually thereafter, the conversion cap is subject to adjustment. Conversion is limited to 10 percent per month of the initial amount, accumulating monthly, up to a maximum of 30 percent of the accumulated convertible amount in any single month.
    The Series A Stock is subject to mandatory redemption on May 1, 2004. The company may require conversion if the market price of the Common Stock exceeds the conversion cap by at least 50 percent for at least 20 consecutive trading days. The Series A Stock carries registration rights for the Common Stock.
    Donald W. Townsend, president and chief executive officer of Simula, noted that these proceeds, along with the proceeds from the anticipated sale of the company's discontinued rail-seat business, will be used to repay indebtedness, for working capital and possibly to retire some of the company's outstanding 8 percent Convertible Notes to mitigate potential dilution from the Series A Convertible Preferred Stock.
    The securities have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold in the United States absent applicable registration.
    Simula is a leader in developing and commercializing protective systems and energy-absorption technologies that safeguard human lives. Products include advanced occupant seating and restraint systems for commercial airline, military and automotive applications. Additional information may be found at www.simula.com.