---

Exide to Acquire Interest In `Breakthrough' Battery Technology

27 September 1999

Exide Corporation to Acquire Majority Interest In Potential `Breakthrough' Battery Technology

                 Company to Partner With Lion Compact Energy
                   In Development of Dual-Graphite Battery

    READING, Pa., Sept. 27 -- Exide Corporation , a
global leader in the business of stored electrical energy, today announced it
has entered into a preliminary agreement to acquire a controlling interest in
Lion Compact Energy (LCE), a privately held company conducting research in
dual-graphite battery technology that could dramatically advance the search
for cleaner, less expensive and more efficient batteries.
    Lion Compact Energy has thus far produced several prototype batteries
using graphite in different forms as the electrode material. The company
estimates that, in full production, its graphite battery could produce more
than three times the energy of today's most advanced production batteries,
with half the weight, occupying far less space, and at only one third the
cost.
    Robert A. Lutz, Chairman and Chief Executive Officer at Exide, said, "What
LCE has thus far accomplished is one of the most compelling stories in the
history of advanced battery technology. We are extremely excited about dual-
graphite's potential and the benefits it could bring to our company, the users
of stored electrical energy, and the global environment."
    Exide's share of LCE will be acquired from the Michigan Molecular
Institute. While LCE does not currently have any marketable products, the
initial applications for these advanced batteries include smaller battery-
operated devices, including cell phones, cameras, laptop computers, power
tools and certain military equipment. Its use in larger devices would follow,
and could include wheel chairs, motorcycles, replacement for lead-acid
batteries in cars and trucks and, potentially, all-electric vehicles.
    William Orabone, President of Lion Compact Energy, said, "We are obviously
pleased to be associated with the leader in this industry and a company
committed to advancing both the science and the marketing of the dual-graphite
battery."
    The potential acquisition of LCE is consistent with Exide's mission of
developing advanced technology for storing electrical energy.  Total research
and development expenses needed to fully develop this technology are not known
at this time, but could be significant.
    "While returns on this kind of technological investment are not immediate,
our right to control the marketing and sales of this technology through a wide
range of use is an outstanding long-term opportunity," Lutz said.
    In another technological advance earlier this year, Exide began marketing
its Orbital Select automotive battery -- a cylindrically wound battery that
represents the first technology that produces a battery with both a longer
shelf life and higher energy density, allowing it to be installed within the
passenger compartments of vehicles.
    The acquisition of LCE is subject to certain conditions, including due
diligence and  the execution of agreements with certain third parties.  Exide
expects to close the transaction within 60 days.
    Exide Corporation, with annual revenues of approximately $2.4 billion and
operations in 19 countries, is the world's largest manufacturer of automotive
and industrial lead-acid batteries. Further information about Exide's
businesses and products is available at http://www.exideworld.com.
    Certain statements in this press release constitute forward-looking
statements as defined by the Securities Litigation Reform Act of 1995. As
such, they involve known and unknown risks, uncertainties and other factors,
which may cause the actual results of the Company to be materially different
from any results expressed or implied by such forward-looking statements.
These risks and uncertainties include the ability to bring the products to a
manufacturing level, performance and/or consumer acceptance of any new or
existing product, delays in bringing new products to market and other factors.
For a description of the risks associated with Exide's business as a whole,
please refer to the appropriate sections of the company's most recent 10Q and
10K filings.