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Simula, Inc. Confirms Sale of Coach & Car Equipment Corporation

25 October 1999

Simula, Inc. Confirms Sale of Coach & Car Equipment Corporation

    PHOENIX--Oct. 22, 1999--Simula, Inc. today announced that it has completed the sale of its wholly owned subsidiary, Coach & Car Equipment Corporation, under an agreement of August 31, 1999.
    Payment of the $10 million purchase price consists of two promissory notes, each at an interest rate of 8 1/2%: one in the amount of $2 million, maturing on October 15, 2004, with quarterly interest payments commencing on April 1, 2000; the other in the amount of $8 million, maturing on October 15, 2004, with semi-annual interest payments commencing on April 1, 2001. The Company has a perfected first security interest in the assets. However, the notes may be subordinated to a senior credit facility being negotiated by the buyer with a third party lender. The buyer is a corporation controlled by Scott E. Miller of Phoenix, Arizona. Mr. Miller was a member of the Company's board of directors from 1995 to 1998. Further details of the transaction may be found in the Company's Form 8-K to be filed on or about October 25, 1999 with the Securities and Exchange Commission.
    The Company previously reported that it anticipated an all-cash transaction, with the expectation that it would use the proceeds of the sale to repay current indebtedness. Due to requirements of the buyer's lender, the transaction has been restructured in such a way that the principal proceeds of the sale will not be immediately available, said Donald W. Townsend, President and CEO of Simula. The Company is in discussions with other sources of liquidity.
    Mr. Townsend said that, consistent with earlier statements, the Company continues to see improvements in each of its operating segments, and that it expects to report third-quarter earnings during the week of November 8, 1999.
    Simula, Inc. 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.