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Exide Acquires Majority Interest in Potential `Breakthrough' Battery Technology

23 December 1999

Exide Corporation Acquires Majority Interest in Potential `Breakthrough' Battery Technology

    READING, Pa., Dec. 23 -- Exide Corporation , a
global leader in the business of stored electrical energy, today announced it
has acquired a controlling interest in Lion Compact Energy, 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.
    The intent to acquire 55 percent of the company was previously announced
by Exide Corporation on September 27, 1999.  Under the terms of the
acquisition, Exide Corporation paid $3.5 million in cash upon closing and
could pay $11.5 million, plus certain royalty fees, over the next several
years depending upon the performance of Lion Compact Energy and its product.
The Exide share of the company was purchased from the Michigan Molecular
Institute, a non-profit research institute in Midland, MI.
    Lion Compact Energy has thus far produced several prototype batteries
using graphite in different forms as the electrode material.  Lion Compact
Energy estimates that, in full production, its graphite battery will produce
more than three times the power of today's most advanced production batteries.
Additionally, Lion Company Energy estimates the new batteries will occupy far
less space at about half the weight and at about one-third the cost of today's
most advanced production batteries.
    Robert A. Lutz, Chairman and Chief Executive Officer at Exide, said, "We
are extremely pleased to have completed this acquisition.  As we've 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.  In the spring
of next year we expect to be able to demonstrate a prototype dual graphite
battery, in a smaller application, to technology media and investors around
the country."
    The initial applications to be pursued for the battery include:
communications satellites, standby power for utility companies, laptop
computers and certain military equipment.  Its use in other 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 have the acquisition finalized and we look forward to commercially
developing what is clearly the best advanced battery technology available."
    Lutz added, "While returns on this kind of technological investment are
not immediate, our right to control the marketing and sales of this technology
demonstrates our determination to be in the forefront of stored electrical
energy development on a global basis."
    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 may 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 could include the 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.