BREED to Acquire AlliedSignal's Safety Restraints Business.

LAKELAND, Fla. & MORRISTOWN, N.J.--(BUSINESS WIRE)--Sept. 2, 1997--BREED Technologies, Inc., (NYSE:BDT) and AlliedSignal, Inc., (NYSE: ALD) announced today that they have reached agreement for BREED to acquire for cash AlliedSignal's automotive safety restraints business.

AlliedSignal Safety Restraint Systems has annual sales in excess of $900 million. It employs 7,742 people in 14 plants in seven countries. In the U.S., it is the largest supplier of seat belts and the third-largest supplier of airbags.

Johnnie Cordell Breed, Co-Chairman and Chief Executive Officer of BREED Technologies, said, "BREED is widely recognized as an emerging mega-supplier. The acquisition of AlliedSignal's automotive safety restraints group demonstrates our continued focus on strengthening our market position in all areas of automotive safety, including seat belts. This strategic combination of our businesses makes BREED an even more formidable global competitor in fully integrated occupant safety systems. BREED is the largest producer of steering wheels in the world. With AlliedSignals's seat belts, BREED will now be the largest supplier of seat belts in the United States. In fiscal year 1996, BREED's sales were $432 million. Our sales doubled at the end of fiscal year 1997, and will double again during fiscal year 1998."

"This transaction is another important step in reshaping our Automotive business," said John W. Barter, President of AlliedSignal Automotive. "It will allow us to focus on businesses that have strong market positions and outstanding growth potential. These include Turbocharging Systems and Truck Brake Systems, both global market leaders, and on our new Automotive Products Group, which includes Friction Materials, Filters & Spark Plugs, and Aftermarket Products." AlliedSignal Automotive's popular branded aftermarket products include Prestone(R) products, FRAM(R) filters, Autolite(R) spark plugs, and Bendix(R) and Jurid(R) friction materials.

The acquisition is expected to be completed following regulatory review and compliance with other legal requirements in the various countries where these businesses operate.

Headquartered in Lakeland, Fla., BREED Technologies is one of the world's leading suppliers of automotive occupant safety systems and steering wheels, providing its global customers with research and development, engineering and manufacturing support through its more than 60 facilities in 13 countries. BREED employs 11,366 people worldwide. Information about BREED and its products is available on the Internet at http://www.breedtech.com/.

Based in Morris Township, N.J., AlliedSignal, Inc., is an advanced technology and manufacturing company serving customers worldwide with aerospace and automotive products, chemicals, fibers, plastics and advanced materials. Its 1996 sales were $14.0 billion. After the divestiture, the company, a component of the Dow Jones Industrial Average, will have an employment level of some 70,000 people at 300 facilities in 40 countries.

Information about AlliedSignal is available on the Internet at http://www.alliedsignal.com/.

CONTACT: BREED Technologies, Inc.

Tim Weir

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AlliedSignal, Inc.

Mark Greenberg

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