BREED Technologies, Inc. Files for Reorganization Relief Under Chapter 11 and Receives Commitment for up to $125 Million in Financing.

LAKELAND, Fla.--(BUSINESS WIRE)--Sept. 21, 1999--

BREED Technologies, Inc. ("BREED") (NYSE:BDT)and certain of its domestic affiliates yesterday filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.

The Company also announced that it has received a commitment from its lending group for up to $125 million in debtor-in-possession (DIP) financing. The DIP financing, which is subject to court approval, is expected to provide adequate funding for all post-petition trade and employee obligations, as well as the costs associated with the restructuring process. The Company's international entities will not be affected, as only BREED's U.S. operations have sought protection under Chapter 11.

Chairman and Chief Executive Officer Johnnie Cordell Breed said, "Given our Company's current condition, we believe that this action will give us the ability to preserve and maximize value for creditors and shareholders. With the hard work and dedication of our employees and the support of our customers and suppliers worldwide, we intend to emerge from this process a stronger company."

In announcing today's Chapter 11 filing, Charles J. Speranzella, Jr., President and Chief Operating Officer, commented, "The filing provides BREED with the opportunity to better position itself for a viable future. After the filing, BREED will continue to operate without interruption. With our new DIP financing, we will be able to continue to supply our customers with quality safety restraint products and build stronger relationships with our suppliers going forward. Employee payroll obligations will continue to be met and our union agreements remain in tact."

As a result of the Chapter 11 filing, BREED will cease interest payments on its debt, including publicly traded debentures. At the time of the filing, the Company's debt totaled approximately $1.6 billion. Losses for the first fiscal nine months ended March 31, 1999, including special charges, were $234.7 million or $6.37 per share.

The Company also announced today that Fred C. Caruso has been appointed to serve as Chief Restructuring Officer. In this capacity, Caruso is supervising BREED's reorganization effort, including internal financial controls, continuing development of capital transaction programs and other activities critical to transitioning the Company. Caruso is Vice President of Development Specialists, Inc., where he has successfully provided consulting and day-to-day leadership to numerous companies.

The statements contained in this press release that are not purely historical, including statements regarding BREED's objectives, expectations, hopes, intentions, beliefs or strategies regarding the future, are "forward-looking" statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements, including, without limitation, those relating to the sufficiency of the DIP financing, the affect of the filing on international operations and the Company's prospects for the future, are subject to certain risks and uncertainties that could cause results to differ materially from those projected. These risks include, without limitation, the Company's ability to maintain its customer and supplier relationships, to implement its program of reorganization and to retain key employees. Management believes these forward-looking statements are reasonable; however, undue reliance should not be placed on such forward statements which are based on current expectations.