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Exide Corporation Responds to Alabama Allegations

8 November 1999

Exide Corporation Responds to Alabama Allegations

    READING, Pa., Nov. 5 -- Exide Corporation , the
global leader in the lead-acid battery business, responded today to internet
discussions and media queries about the attorney general of Alabama joining an
existing, ongoing litigation.
    The complaint alleges that automotive batteries were refurbished and then
sold as new to consumers in Alabama between 1993 and the present.
    Robert A. Lutz, chairman and chief executive officer at Exide, said, "It
is disappointing to us that the state of Alabama has taken this action.  The
new management team at Exide has vigorously enforced some of the strictest
quality standards in the industry and we have certainly been willing to
resolve consumer complaints."
    The Alabama allegations arise from a $13,000 dispute in 1996 between Exide
Corporation and an auto parts company in that state over unpaid invoices.
Exide sued to recover payments owed.  In a counterclaim filed by the parts
company, it alleged that it had been sold defective batteries.  The case ended
in a mistrial in May of this year when a jury found no compensatory damages,
but awarded punitive damages in the amount of $1.5 million.  Such a ruling is
inconsistent with Alabama law and the case was set for retrial.
    Exide opposed the attorney general's intervention in the case, stating
that it would unfairly broaden a dispute between two parties.  Exide plans to
seek an appellate review of the Alabama action and the case has been postponed
until next year.
    In addition, after meeting with the State Attorney General's Office on
October 25, 1999, Exide submitted a written offer to resolve any concerns the
State may have without resorting to prolonged litigation.  The State has not
yet responded in writing to the offer.
    Earlier in the year, without the admission of any wrongdoing, Exide
settled a much broader investigation with the state of Florida.  In the past
few years, in Alabama, Exide successfully defended four other lawsuits,
including a class action, alleging the sales of used or defective batteries as
new, and settled a fifth for a small amount.
    Management of Exide said that, while it is not possible to predict the
outcome of the case with certainty, in light of its successful defense of
similar actions in Alabama, as well as its experience with the Florida
Attorney General, Exide believes that this development will not have a
material affect on the company's financial position.
    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.