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Johnson Controls Files Suit Against Exide Corp.

27 June 2000

Johnson Controls Files Suit Against Exide Corp.

    MILWAUKEE - Johnson Controls, Inc. today confirmed that it filed a complaint 
against Exide Corporation and three of its former highest-ranking officers, 
Arthur Hawkins, Alan Gauthier and Douglas Pearson.  The complaint alleges that 
the commercial bribery of a former Sears, Roebuck and Co. battery buyer was a 
cause of Johnson Controls losing its battery supply contract with Sears in 1994.

    As of that date, Johnson Controls had been the principal supplier of
batteries to Sears for approximately 40 years.

    The records of a Florida Attorney General's investigation of Exide were
made available to Johnson Controls attorneys for review beginning in
February 2000.  These records revealed evidence of commercial bribery by
Exide.  Johnson Controls attorneys independently reviewed the evidence of
Exide's conduct.  The records included sworn testimony of numerous former
Exide employees.  Exide admitted in December 1999 court filings that its
former officers had paid certain bribes.

    The investigation yielded evidence that during the period leading up to
the award of the 1994 contract, Exide's former chief executive officer
promised to make payments to the buyer if Exide received the contract.  After
the contract was awarded, Exide began making the payments described in the
complaint.  These findings led to the conclusion that Johnson Controls should
file a lawsuit for violation of the federal Robinson-Patman Act arising from
Exide's commercial bribery.

    As a matter of courtesy, Johnson Controls gave Exide advance notice of the
lawsuit earlier this month, and even offered Exide the opportunity to discuss
settlement.  Several days after an initial June 8, 2000 settlement discussion,
Exide's current chief executive officer, Robert A. Lutz, rejected the offer to
continue these discussions, implausibly claiming it was unethical for Johnson
Controls to offer to settle the lawsuit.

    Six days later Exide cancelled a second settlement conference that had
been scheduled for June 30, 2000.  After Exide's decision to discontinue
settlement discussions, Johnson Controls filed the bribery lawsuit.

    The complaint, which was filed in the U.S. District Court for the Northern
District of Illinois, Eastern Division, seeks compensatory damages and
punitive damages to be determined at trial.

    Johnson Controls began supplying batteries to Sears again in 1997.