Simula Receives Orders for Patented Parachutes and Flotation Collars.

Business Editors

PHOENIX--(BUSINESS WIRE)--Oct. 25, 2000

Simula Inc. (NYSE:SMU) today announced that it has received from the U.S. Navy an additional procurement order for the military version of its patented emergency bailout parachute system, called the Thin-Pack Parachute ("TPP").

The order, which has a not-to-exceed value of $43 million over the next five years, includes TPP systems, subsystems/components, and engineering/logistical support.

Deliveries are to start in the current quarter. Simula has been supplying parachute systems to the Navy since October, 1999, with production orders to date valued at approximately $15.5 million.

The company also announced that it has received an additional order for its patented aircrew Low-Profile Flotation Collar ("LPFC"), with a not-to-exceed value of $9 million. To date Simula has delivered more than 12,000 LPFC units to the U.S. Navy and Army, with production orders valued at approximately $6 million.

Design and production of the TPPs and LPFCs is done at Simula's Safety Equipment International (SEI) division, located in Asheville, N.C. In addition to parachutes and other personal protective equipment -- in which the company expects to see continuing growth -- Simula's core products and technologies include inflatable restraints, energy absorbing seating systems, advanced polymer materials, transparent and opaque armor products, and crash sensors.

Simula's Commitment to Providing Life-Saving

Technologies is on a 'FASTrack'

Simula President and CEO Brad Forst stated the establishment of these agreements signals an ongoing mutual commitment by Simula and the Navy to provide enhanced protection to pilots and aircrews while serving in extreme environments and under diverse conditions.

According to recent marketing surveys, demand for emergency bailout parachute systems to adequately equip U.S. military aircrews within the various services now exceeds 30,000 units.

One reason why Simula's systems have been gaining market share is because Simula's patented environmental sealing technology reduces repackaging and maintenance costs, and extends the service life of the parachute without jeopardizing user safety.

"In addition," said Forst, "the commercialization strategy for our patented environmentally sealed parachute systems and aircrew flotation collars is just one in a series of strategic initiatives associated with the company's previously announced FASTrack product portfolio management and technology planning process, which is designed to bring commercially viable products to market more quickly and efficiently.

"We have a series of other proprietary products under development that provide protection to individuals from ballistic impact, laser threats, and chemical and biological agents. Our technical understanding of these areas has enabled us to develop outstanding products with both military and commercial applications.

"For example, we are seeing increasing sales opportunities of our commercial version of the emergency bailout parachute in addition to the military version," Forst said.

While Simula's business base with Government and U.S. military customers has steadily increased, the company's Durachute(R) (a registered trademark of Simula) parachute system -- the commercial configuration of the TPP -- is also attracting customer attention. The Durachute uses the same patented environmental sealing technology for commercial applications.

Simula received its Federal Aviation Administration Technical Standard Order (TSO) for the parachute canopy design in January of this year.

Simula, Inc., headquartered in Phoenix, is a diversified technology company that designs and manufactures occupant safety systems and devices engineered to safeguard human life in a wide range of air, ground, and sea transportation vehicles. The company operates in two principal markets that are aligned with its core technologies: aerospace and defense systems, and automotive safety systems.

The company's core products and technologies include inflatable restraints, energy absorbing seating systems, advanced polymer materials, transparent and opaque armor products, personnel protective equipment and parachutes, and crash sensors. Additional information about Simula can be found at its Web site, www.simula.com.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements that involve risks and uncertainties that may cause the company's actual experience to differ materially from that which is anticipated. These forward-looking statements include statements about the anticipated growth in sales of the company's parachutes and personal protective equipment. Actual results may differ materially from those projected. Additional risks include those described herein and in the company's registration statements and periodic reports filed with the U.S. Securities and Exchange Commission.