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BREED Announces Results of Meeting With Lending Group

31 March 1999

BREED Announces Results of Meeting With Lending Group

    LAKELAND, Fla.--March 31, 1999--BREED Technologies, Inc. one of the world's largest manufacturers of automotive occupant restraints, announced today that the company has obtained a waiver of certain financial covenants related to its credit facility.
    The waiver, which extends through June 29, 1999, also specifically provides for the payment of the company's senior subordinated debt interest due during this period and, under certain conditions, the payment of the distribution related to the convertible trust preferred securities of BTI Capital Trust. With this waiver, the revolving portion of BREED's credit facility has been reduced from $150 million to $125 million. The company anticipates that this amount will provide the necessary liquidity to operate the business through the waiver period. BREED officials met with the company's lending group on March 22, to discuss future plans and actions, and to request this waiver.
    "We are very pleased with the results of our meeting and the continued support of BREED's lending institutions. Our lending group has provided us with the flexibility we requested to move the company through this transitional period," stated Chairman and Chief Executive Officer Johnnie Cordell Breed. "Our customers and suppliers are also continuing to show a great deal of support for BREED and have been working very closely with us throughout this challenging transition."
    Headquartered in Lakeland, Fla., BREED is one of the world's largest manufacturers of complete automotive occupant restraint systems and components. With approximately $1.4 billion in annual revenues, the company designs, develops and produces advanced airbag, seat belt, steering wheel and sensing technologies for leading automobile manufacturers around the globe.

CAUTION ON FORWARD-LOOKING STATEMENTS

    Statements herein regarding the company's expected future performance, including the company's ability to meet its liquidity needs, 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 company's liquidity needs, management has made certain assumptions regarding the company's performance, which may change or be affected by, among other things, customer demands 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.