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Exide Corporation Responds to Johnson Controls, Inc. Lawsuit

26 June 2000

Exide Corporation Responds to Johnson Controls, Inc. Lawsuit

    READING, Pa. - Describing the actions of Johnson Controls, Inc. as 
"outrageous" and "extortionate," management at Exide Corporation responded today 
to a lawsuit filed by JCI against the company.

    Earlier this month Robert A. Lutz, Chairman of the Board and Chief
Executive Officer, and John R. Van Zile, General Counsel, were contacted by
both the chief operating officer and general counsel of JCI.  In those
contacts JCI threatened to sue Exide, claiming JCI lost a significant customer
(Sears) to Exide in 1994 because of improper payments made by Exide's former
management to a Sears employee.  Each JCI officer said JCI would drop the
claim, which they valued at $50 to $100 million, if Exide would make certain
commercial concessions to JCI.

    In a letter from JCI's general counsel, dated June 12, 2000, JCI confirmed
its "desire to discuss a possible transaction involving a part of Exide's
battery business and the possible resolution of claims that Johnson Controls
or its subsidiaries has or may have against Exide arising out of what we
understand to be instances of commercial bribery of a representative of Sears,
Roebuck and Co. by members of Exide's former upper management.  Our
information on this topic has come from public records that were made
available to Johnson Controls last fall."

    In a letter to JCI Chairman and Chief Executive Officer James H. Keyes
dated June 14, 2000, Exide's chairman said, "JCI's unfounded threats to obtain
favorable business treatment or otherwise interfere with Exide's business are
unethical, improper, and legally actionable."

    "It is indeed unfortunate that relations between JCI -- a company I have
personally always held in high regard -- and Exide have deteriorated to the
point of litigation.  However, Exide will not be pressured into making
economic concessions under the threat of a lawsuit.  There may be those who
view Exide's pending acquisition of GNB Technologies as a window of
vulnerability and be tempted to take advantage of it.  That would be a serious
miscalculation," Lutz said today.

    Management at JCI, while acknowledging no independent knowledge of any
improper payment, referred to allegations of such a payment made in late 1995
or 1996, long after Exide assumed the Sears business.

    The threat and lawsuit came after Exide received approval from federal
regulators to proceed with its acquisition of GNB Technologies from Pacific
Dunlop, LTD.  While the acquisition is still pending the completion of due
diligence and financing, the acquisition would strengthen Exide's competitive
position in the North American automotive battery market, where JCI is the
market share leader.

    Exide believes that JCI's allegations are unfounded and that the threats
and subsequent lawsuit have only been used to pressure Exide into commercial
concessions and to potentially interfere with the GNB acquisition.  Exide does
not believe that the suit will have any material adverse affect on the
company.  Exide will file a civil counter-claim and is considering referring
the matter to the appropriate authorities for possible criminal prosecution.

    Allegations of an alleged improper payment to Sears were made public over
a year ago as part of a Florida Attorney General investigation.  The issue
received further attention as a result of a claim and counterclaim between
Sears and Exide in 1999, litigation Exide filed against former management,
other litigation related to alleged "used as new" claims, as well as publicity
related to a federal investigation of Sears automotive businesses, including
batteries manufactured by Exide and sold by Sears.

    Exide Corporation, with annual revenues of approximately $2.2 billion and
operations in 23 countries, is the world's largest manufacturer of automotive
and industrial lead-acid batteries and a leader in electric storage solutions.