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Exide Completes Acquisition of GNB Technologies

2 October 2000

Exide Completes Acquisition of GNB Technologies; Announces Initial Restructuring Plan

    READING, Pa., Sept. 29 Exide Corporation has
completed its acquisition of GNB Technologies, the global battery business of
Pacific Dunlop Limited, for $368 million.
    Exide will now conduct business under the name Exide Technologies and will
seek shareholder approval at its 2001 annual meeting for the name change.
    As a result of the acquisition Exide will have approximately $3.2 billion
in annual revenues and will be either first or second in both transportation
and industrial battery sales in every market it serves.
    The acquisition will allow Exide to reenter the North American industrial
battery business, broaden its geographic reach, and attain significant
efficiencies in its North American transportation business.
    Robert A. Lutz, Chairman and Chief Executive Officer, said, "There are
tremendous synergies between the two companies, with very little overlap when
it comes to markets or customers.  With the GNB acquisition we will reenter
the fast growing North American industrial business.  We will quickly
integrate GNB with Exide, and execute profit improvement plans, particularly
in the combined North American aftermarket business, to rationalize product
lines, manufacturing capacity, distribution systems, and administrative
activities."
    The company has launched cost-saving initiatives concurrent with the
acquisition.  These initial programs are expected to result in pre-tax savings
during the first twelve months of approximately $25 million.  When fully
implemented, the initiatives are expected to produce annualized pre-tax
savings of approximately $50 million.  The company will take an estimated
$12 million pre-tax ($7 million after-tax) restructuring charge in its second
quarter to provide for severance and other costs associated with these
actions.  There will be additional restructuring charges in subsequent periods
when additional initiatives are announced.
    The initiatives described below are the first steps in the company's
restructuring plan.  The company believes significant additional benefits will
be realized from future initiatives.  In total, the company expects savings
from its restructuring plans will exceed the previously announced savings of
$44 million in the first twelve months.
    Among items announced today were:
    -- The former GNB automotive battery manufacturing facility in Dallas will
       be closed by November 30, 2000.  The closing will result in the layoff
       of approximately 258 workers.  Most of the production will be
       consolidated at Exide's Salina, KS and Bristol, TN facilities.
    -- A former GNB distribution center near Leavenworth, KS, along with two
       other smaller facilities, will be closed by December 31, 2000.  Closing
       of the distribution centers will result in the layoff of approximately
       75 workers.
    -- By December 31, 2000, Exide will close 27 of the combined company's
       branch locations.
    -- The former GNB European industrial organization will be consolidated
       with Exide's existing operations.
    -- Initially Exide will reduce a total of 300 employees, or 25 percent,
       from its North American sales, marketing and support staffs.  The
       personnel reductions will be phased in over the next year.  As part of
       its restructuring, the company will locate its global transportation
       business and its shared-services unit in Atlanta and its North American
       industrial operations in Chicago.  Its motive power business is based
       in Manchester, UK and the network power business in Budingen, Germany.
       The corporate office will be downsized and moved to a new headquarters
       in Princeton, NJ, resulting in the closing of the company's
       headquarters in Reading.
    Exide began the rationalization of its automotive business earlier in the
year.  On August 28, 2000, the company announced initial steps to improve the
profitability of its operations, including the closing of an automotive
aftermarket battery manufacturing facility in Maple, Ontario; merging its
Canadian and U.S. sales organizations; closing 11 North American distribution
facilities and the restructuring of its motorsports sponsorships.  These
actions will save the company approximately $24 million per year and result in
second fiscal quarter pre-tax charges of approximately $17 million
($10 million after-tax).
    "Including these initial profit improvement initiatives, we believe the
acquisition will be significantly accretive to earnings beginning in fiscal
year 2002," Lutz said.