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Harvard Industries Reports Third Fiscal Quarter Results

15 August 2000

EBITDA Totals $14.0 Million For 9 Months; Acquisition of Breed Technologies, Inc. on Schedule

    LEBANON, N.J. - Harvard Industries, Inc. , a manufacturing company which emerged from Chapter 11 bankruptcy in November, 1998, announced sales and EBITDA for the nine-month and three-month periods ended June 30, 2000, of $260 million and $14.0 million and $86.4 million and $3.4 million, respectively.

    As a result of its emergence from Chapter 11 and the prospective effects of "Fresh Start Reporting", the Company does not believe that its historical results from operations are necessarily indicative of its results as an on-going entity. However, for comparative purposes the nine-month period ended June 30, 2000 was compared to the combined seven-month period ended June 30, 1999 and the two-months ended November 29, 1998 (post-emergence).

    On a pro forma basis for the corresponding nine-month and three-month periods a year earlier, the Company had sales and EBITDA of $253.2 million and $13.8 million and $86.9 million and $5.6 million respectively, after adjusting the prior period sales and EDITDA by $134.6 million and $12.7 million and $43.0 million and $3.1 million respectively for operations divested in the twelve-month period ended September 30, 1999. These divestitures were made to enable the Company to advance its diversification.

    Harvard believes that EBITDA, defined as earnings before interest, income taxes, depreciation, amortization, reorganization items, extraordinary items and one-time items such as the gain or loss on the sale of operations, is the best benchmark of its performance since it bears a closer relationship to real cash earnings than earnings per share.

    Roger Pollazzi, Chairman and Chief Executive Officer, noted, "The Company continues to make excellent progress as we develop our higher value added businesses. The opportunity to combine our company with Breed is rich with potential to accelerate this strategy by moving beyond the manufacture of components to production of assemblies, systems and other more encompassing customer solutions. Our due diligence and financing efforts are proceeding nicely and we expect to conclude this transaction on schedule."

    Harvard Industries, Inc. designs, develops, and manufactures a broad range of components for OEM manufactures and the automotive aftermarket, as well as aerospace and industrial and construction equipment applications worldwide. The Company has approximately 2,500 employees at 10 plants in the United States and Canada.