BREED Anticipates First Quarter Loss.

LAKELAND, Fla.--(BUSINESS WIRE)--Nov. 5, 1998--BREED Technologies, Inc. (NYSE:BDT), a worldwide leader in automotive occupant safety systems, today announced that the company expects to report a net loss between 75 and 80 cents per share in the first quarter ended September 30, 1998. First quarter results were impacted by several factors, including, among other things, the annual shutdown of the European automotive business, a shift in product mix, and, most significantly, the strike at General Motors, one of BREED's largest global customers, which affected BREED across all major product lines. In addition, anticipated cost savings from BREED's repositioning program for the quarter were not realized, due primarily to a temporary reallocation of resources to support 44 product launches for 12 OEMs in North America, Europe and Asia.

"The strong recovery we anticipated for September, following the European shutdown, did not materialize. European sales, which comprised 38 percent of our annual revenues in 1998, are a significant portion of our business," stated Vice Chairman, President and Chief Operating Officer Charles J. Speranzella, Jr. "Nonetheless, the company remains solid. Our cash position at the end of the quarter was strong and we can meet our current financial responsibilities. Customer confidence was demonstrated during FY `98, as indicated by BREED's award rate of over 40 percent on quoted business. Additionally, seat belt technology developed by BREED contributed to a major US platform earning a double five-star safety rating in September - the highest rating given to cars for crash worthiness by the National Highway Transportation Safety Administration."

BREED will release its full first quarter results on or before November 16, 1998.

Caution on Forward-Looking Statements

Statements herein regarding the estimated net losses for the first quarter ended September 1998, constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. With respect to the estimated net losses, management has made certain assumptions in calculating the expected operating losses, which may change. Statements herein regarding the Company's performance in future periods are also subject to risks relating to, among other things, difficulties in integrating acquired businesses, deterioration of relationships with material customers, possible significant product liability claims, decreases in demand for the Company's products, and adverse changes in general market and industry conditions. Management believes these forward-looking statements are reasonable; however, undue reliance should not be placed on such forward-looking statements, which are based on current expectations.