Exide Technologies Provides Fiscal 2006 Results

Net sales for the fourth fiscal quarter were $730.6 millioncompared to $712.8 million in the prior year quarter. Foreign currencynegatively impacted year-over-year fourth quarter sales byapproximately $32 million, which was more than offset by favorablepricing in all businesses as well as increased volume in both of ourTransportation Divisions and in our Industrial Energy North AmericanDivision.

The net loss for the fourth quarter of fiscal 2006 was $76.3million or $(3.05) a share compared with a net loss of $44.4 millionor $(1.78) a share in the prior year period. The increase in the netloss in the fourth quarter is principally driven by the recording of$24 million for a settlement with the U.S. Attorney for the SouthernDistrict of Illinois relating to a historic fine and a $5 millionincrease in interest cost due to higher debt and rates.

In the Form 10-K, the Company reported net sales of $2.82 billionin fiscal 2006 compared with $2.69 billion in fiscal 2005. Thisincrease was principally attributable to growth in Industrial Energyworldwide and Transportation North America, partially offset by $53million of negative foreign currency impact. Additionally, net saleswere favorably impacted by overall pricing actions throughout allsegments.

Net loss as reported was $172.7 million or $(6.91) a share infiscal 2006 compared with net loss of $466.9 million or $(18.68) ashare in the period May 6, 2004 to March 31, 2005 (Successor Company).The fiscal 2005 results included a goodwill impairment charge of $389million. Excluding this, the net loss for the current fiscal yearincreased by approximately $95 million, principally driven by a $54million reduction on the gain from revaluation of the Company'swarrants' liability (from $63 million in fiscal 2005 to $9 million infiscal 2006), $27 million of increased interest expense due to higherdebt and rates and the recording of the aforementioned settlement withthe U.S. Attorney.

The Company, as it has said in the past, uses adjusted EBITDA as akey measure of its operational financial performance and it is also akey element of the covenants in its bank agreements. This measureunderlies the Company's operational performance and excludes thenonrecurring impact of the Company's current restructuring actions.Adjusted EBITDA is defined as earnings before interest, taxes,depreciation, amortization and restructuring charges. Our adjustedEBITDA definition also adjusts reported earnings for the effect ofnon-cash currency remeasurement gains or losses, the non-cash gain orloss from revaluation of the Company's warrants liability, impairmentcharges and non-cash gains or losses on asset sales as well as aspecific exclusion for the aforementioned settlement with the U.S.Attorney. See the reconciliations of net losses to adjusted EBITDA inthe attachments to this release.

Adjusted EBITDA in the fourth quarter of 2006 was $19.3 millioncompared to $6.5 million in the fourth quarter of the fiscal year.Full year 2006 adjusted EBITDA was $104.5 million compared to $105.7million in fiscal 2005.

The Company has also concluded, after further review of varioustax and non-tax related entries, that it will not be restating priorperiod financials results, as was previously reported in a pressrelease dated June 14, 2006.

As communicated on June 27, 2006, the Company will hold aconference call to discuss its results on Thursday, June 29, 2006.

About Exide Technologies:

Exide Technologies, with operations in 89 countries, is one of theworld's largest producers and recyclers of lead-acid batteries. TheCompany's four global business groups - Transportation Americas,Transportation Europe and Rest of World, Industrial Energy Americasand Industrial Energy Europe and Rest of World - provide acomprehensive range of stored electrical energy products and servicesfor industrial and transportation applications.

Transportation markets include original-equipment and aftermarketautomotive, heavy-duty truck, agricultural and marine applications,and new technologies for hybrid vehicles and 42-volt automotiveapplications. Industrial markets include network power applicationssuch as telecommunications systems, electric utilities, railroads,photovoltaic (solar-power related) and uninterruptible power supply(UPS), and motive-power applications including lift trucks, mining andother commercial vehicles.

Further information about Exide, including its financial results,are available at www.exide.com.

Forward-Looking Statements

Except for historical information, this press release may bedeemed to contain "forward-looking" statements. The Company desires toavail itself of the safe harbor provisions of the Private SecuritiesLitigation Reform Act of 1995 (the "Act") and is including thiscautionary statement for the express purpose of availing itself of theprotection afforded by the Act. The Company undertakes no obligationto publicly update or revise any forward-looking statement in this orany prior forward-looking statements whether as a result of newinformation, future developments or otherwise.

Examples of forward-looking statements include, but are notlimited to (a) projections of revenues, cost of raw materials, incomeor loss, earnings or loss per share, capital expenditures, growthprospects, dividends, the effect of currency translations, capitalstructure and other financial items, (b) statements of plans andobjectives of the Company or its management or Board of Directors,including the introduction of new products, or estimates orpredictions of actions by customers, suppliers, competitors orregulating authorities, (c) statements of future economic performance,(d) statements of assumptions, such as the prevailing weatherconditions in the Company's market areas, underlying other statementsand statements about the Company or its business and (e) statementsregarding the ability to comply with or alternatively obtainamendments under the Company's debt agreements.

Factors that could cause actual results to differ materially fromthese forward looking statements include, but are not limited to, thefollowing general factors such as: (i) the Company's ability toimplement and fund based on current liquidity business strategies andrestructuring plans, (ii) unseasonable weather (warm winters and coolsummers) which adversely affects demand for automotive and someindustrial batteries, (iii) the Company's substantial debt and debtservice requirements which may restrict the Company's operational andfinancial flexibility, as well as imposing significant interest andfinancing costs, (iv) the Company's ability to comply with thecovenants in its debt agreements or obtain waivers of oncompliance,(v) the litigation proceedings to which the Company is subject, theresults of which could have a material adverse effect on the Companyand its business, (vi) the realization of the tax benefits of theCompany's net operating loss carry forwards, which is dependent uponfuture taxable income, (vii) the fact that lead, a major constituentin most of the Company's products, experiences significantfluctuations in market price and is a hazardous material that may giverise to costly environmental and safety claims, (viii) competitivenessof the battery markets in North America and Europe, (ix) thesubstantial management time and financial and other resources neededfor the Company's consolidation and rationalization of acquiredentities, (x) risks involved in foreign operations such as disruptionof markets, changes in import and export laws, currency restrictions,currency exchange rate fluctuations and possible terrorist attacksagainst U.S. interests, (xi) the Company's exposure to fluctuations ininterest rates on its variable debt, (xii) the Company's ability tomaintain and generate liquidity to meet its operating needs, (xiii)general economic conditions, (xiv) the ability to acquire goods andservices and/or fulfill labor needs at budgeted costs, (xv) theCompany's reliance on a single supplier for its polyethylene batteryseparators, (xvi) the Company's ability to successfully pass alongincreased material costs to its customers, (xvii) the Company'sability to comply with the provisions of Section 404 of theSarbanes-Oxley Act of 2002, (xviii) adverse reactions by creditors,vendors, customers, and others to the going-concern modification tothe Company's Consolidated Financial Statements included in the Reportof Independent Registered Public Accounting Firm in this report, (xix)the loss of one or more of the Company's major customers for itsindustrial or transportation products, and (xx) the Company's abilityto consummate a rights offering and private placement of stock asnoted below, including obtaining appropriate shareholder approval.

Therefore, the Company cautions each reader of this press releasecarefully to consider those factors set forth above and those factorsdescribed in Amendment No. 1 to the Company's Registration Statementon Form S-3 filed with the SEC on September 14, 2005 and in theCompany's most recent Form 10-K to be filed on June 29, 2006 becausesuch factors have, in some instances, affected and in the future couldaffect, the ability of the Company to achieve its projected resultsand may cause actual results to differ materially from those expressedherein.
Exide Technologies
Consolidated Statements of Operations
(in thousands, except for share data)

Successor Company Predecessor Company
----------------------- ------------------------
For the For the For the For the
fiscal Period Period fiscal
year May 6, 2004 April 1, year
ended to 2004 to ended
March 31, March 31, May 5, March 31,
2006 2005 2004 2004
----------- ----------- ------------ -----------
NET SALES $2,819,876 $2,476,259 $ 214,607 $2,500,493
COST OF SALES 2,413,045 2,098,757 179,137 1,991,168
----------- ----------- ------------ -----------
Gross profit 406,831 377,502 35,470 509,325
----------- ----------- ------------ -----------

EXPENSES:
Selling, marketing
and advertising 271,059 251,085 24,504 264,753
General and
administrative 190,993 150,871 17,940 161,271
Restructuring and
impairment 21,714 42,479 602 52,708
Goodwill impairment
charge -- 388,524 -- --
Other (income)
expense, net 3,684 (56,898) 6,222 (40,724)
Interest expense, net 69,464 42,636 8,870 99,027
----------- ----------- ------------ -----------
556,914 818,697 58,138 537,035
----------- ----------- ------------ -----------

Loss before
reorganization
items, income taxes,
minority interest
and cumulative
effect of change in
accounting principle (150,083) (441,195) (22,668) (27,710)
REORGANIZATION ITEMS,
NET 6,158 11,527 18,434 67,042
FRESH START ACCOUNTING
ADJUSTMENTS, NET -- -- (228,371) --
GAIN ON DISCHARGE OF -- -- (1,558,839) --
LIABILITIES SUBJECT
TO COMPROMISE
INCOME TAX PROVISION
(BENEFIT) 15,962 14,219 (2,482) 3,271
MINORITY INTEREST 529 (18) 26 467
---------- ---------- ----------- ----------
Income (loss) before
cumulative effect of
change in accounting
principle (172,732) (466,923) 1,748,564 (98,490)
CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING
PRINCIPLE -- -- -- (15,593)
----------- ----------- ------------ -----------
Net income (loss) $ (172,732) $ (466,923) $ 1,748,564 $ (114,083)
=========== =========== ============ ===========

NET INCOME (LOSS) PER
SHARE, BEFORE
CUMULATIVE EFFECT
OF CHANGE IN
ACCOUNTING PRINCIPLE
----------- ----------- ----------- -----------
Basic and Diluted $ (6.91) $ (18.68) $ 63.86 $ (3.60)
=========== =========== ============ ===========

CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING
PRINCIPLE PER
SHARE
Basic and Diluted $ -- $ -- $ -- $ (0.57)

NET INCOME (LOSS) PER
SHARE
----------- ----------- ----------- -----------
Basic and Diluted $ (6.91) $ (18.68) $ 63.86 $ (4.17)
=========== =========== ============ ===========

WEIGHTED AVERAGE
SHARES
----------- ----------- ----------- -----------
Basic and Diluted 25,000 25,000 27,383 27,383
=========== =========== ============ ===========
Exide Technologies
Consolidated Balance Sheets
(in thousands, except for share data)

March 31, March 31,
2006 2005
ASSETS
Current assets:
Cash and cash equivalents $ 32,161 $ 76,696
Restricted cash 561 1,323
Receivables, net of allowance for doubtful
accounts of $21,637 and $22,471 617,677 687,715
Inventories 414,943 397,689
Prepaid expenses and other 30,243 21,275
Deferred financing costs, net 3,169 1,725
Deferred income taxes 11,066 4,305
----------- -----------
Total current assets 1,109,820 1,190,728
----------- -----------
Property, plant and equipment, net 685,842 799,763
----------- -----------
Other assets:
Other intangibles, net 186,820 192,854
Investments in affiliates 4,783 9,010
Deferred financing costs, net 15,196 12,784
Deferred income taxes 56,358 55,896
Other 24,090 29,745
----------- -----------
287,247 300,289
----------- -----------
Total assets $2,082,909 $2,290,780
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $ 11,375 $ 1,595
Current maturities of long-term debt 5,643 632,116
Accounts payable 360,538 340,480
Accrued expenses 298,631 385,521
Warrants liability 2,063 11,188
----------- -----------
Total current liabilities 678,250 1,370,900
Long-term debt 683,986 20,047
Noncurrent retirement obligations 333,248 329,628
Deferred income tax liability 33,590 24,178
Other noncurrent liabilities 116,430 106,004
----------- -----------
Total liabilities 1,845,504 1,850,757
----------- -----------
Commitments and contingencies -- --
Minority interest 12,666 12,764
----------- -----------
STOCKHOLDERS' EQUITY
Common stock, $0.01 par value, 61,500 shares
authorized, 24,546 and 24, 407 shares issued
and outstanding at March 31, 2006 and March
31, 2005 245 234
Preferred stock, $0.01 par value, 1,000 shares
authorized, 0 shares issued and outstanding
at March 31, 2006 and March 31, 2005 -- --
Additional paid-in capital 888,647 888,157
Accumulated deficit (639,655) (466,923)
Accumulated other comprehensive income (loss) (24,498) 5,791
----------- -----------
Total stockholders' equity 224,739 427,259
----------- -----------
Total liabilities and stockholders' equity $2,082,909 $2,290,780
=========== ===========
Exide Technologies
Consolidated Statements of Cash Flows
(in thousands, except for share data)

Successor Company Predecessor Company
--------------------- -------------------------
For the For the
For the Period Period For the
fiscal May 6, April 1, fiscal
year 2004 2004 year
ended to to ended
March 31, March 31, May 5, March 31,
2006 2005 2004 2004
---------- ---------- ------------ ------------
Cash Flows From
Operating Activities:
Net income (loss) $(172,732) $(466,923) $ 1,748,564 $ (114,083)
Adjustments to
reconcile net income
(loss) to net cash
(used in) provided
by operating
activities--
Depreciation and
amortization 122,429 108,752 7,848 97,816
Cumulative effect of
change in accounting
principle -- -- -- 15,593
Gain on discharge of
liabilities subject
to compromise -- -- (1,558,839) --
Fresh start accounting
adjustments, net -- -- (228,371) --
Unrealized gain on
Warrants (9,125) (63,112) -- --
Net loss (gain) on
asset sales 8,044 7,649 -- (9,700)
Gain on insurance
recoveries (4,791) (13,645) -- --
Deferred income taxes (36) 6,551 (3,179) (7,343)
Provision for doubtful
accounts 4,116 1,973 473 5,140
Non-cash provision for
restructuring 1,280 4,000 18 217
Reorganization items,
net 6,158 11,527 18,434 67,042
Goodwill impairment
charge -- 388,524 -- --
Insurance proceeds 11,144 7,290 -- --
Minority interest 529 (18) 26 467
Amortization of
deferred financing
costs 2,048 -- 1,251 18,537
Changes in assets and
liabilities excluding
effects of Fresh Start
accounting and
acquisitions and
divestitures--
Receivables 34,022 (31,777) 45,924 32,486
Inventories (34,703) 38,826 (10,873) 12,451
Prepaid expenses and
other (8,997) (108) 286 (13,151)
Payables 33,958 41,120 (20,967) 13,077
Accrued expenses (68,907) (32,932) (20,564) (3,250)
Noncurrent liabilities 27,500 (4,454) (294) (18,401)
Other, net 3,715 (12,934) 13,077 (56,347)
---------- ---------- ------------ ------------
Net cash (used in)
provided by operating
activities (44,348) (9,691) (7,186) 40,551
---------- ---------- ------------ ------------

Cash Flows From
Investing Activities:
Capital expenditures (58,133) (69,114) (7,152) (65,128)
Proceeds from sales of
assets 25,316 25,101 2,800 26,717
---------- ---------- ------------ ------------
Net cash used in
investing activities (32,817) (44,013) (4,352) (38,411)
---------- ---------- ------------ ------------

Cash Flows From
Financing Activities:
Increase (decrease) in
short-term borrowings 10,347 (11,588) 2,425 (107)
Repayments under
9.125% Senior Notes
(Deutschemark
denominated) -- -- (110,082) --
Borrowings under DIP
Credit Facility -- -- -- 836,834
Repayments under DIP
Credit Facility -- -- -- (1,005,598)
Borrowings under
Replacement DIP
Credit Facility -- -- 121,258 510,106
Repayments under
Replacement DIP
Credit Facility -- -- (452,875) (178,488)
Borrowings under
Senior Secured Credit
Facility 46,250 -- 500,000 --
Repayments under
Senior Secured Credit
Facility (17,224) (250,000) -- --
Borrowings under
Senior Secured Notes -- 290,000 -- --
Borrowings under
Convertible Senior
Subordinated Notes -- 60,000 -- --
European asset
securitization -- -- -- (160,221)
Currency Swap (12,084) -- -- --
Increase/Decrease in
other debt 15,667 (5,967) (2,412) (6,152)
Financing costs and
other (8,310) (13,520) (23,146) (6,041)
---------- ---------- ------------ ------------
Net cash provided by
(used in) financing
activities 34,646 68,925 35,168 (9,667)
---------- ---------- ------------ ------------

Effect of Exchange
Rate Changes on Cash
and Cash Equivalents (2,016) 1,879 (1,447) 5,174
---------- ---------- ------------ ------------

Net Increase
(Decrease) In Cash
and Cash Equivalents (44,535) 17,100 22,183 (2,353)
Cash and Cash
Equivalents,
Beginning of Period 76,696 59,596 37,413 39,766
---------- ---------- ------------ ------------
Cash and Cash
Equivalents, End of
Period $ 32,161 $ 76,696 $ 59,596 $ 37,413
========== ========== ============ ============

Supplemental
Disclosures Of Cash
Flow Information:
Cash paid during the
period for--
Interest $ 54,923 $ 32,991 $ 13,765 $ 56,628
Income taxes (net of
refunds) $ 10,568 $ 10,580 $ 1,139 $ 14,355 *T EXIDE TECHNOLOGIES AND SUBSIDIARIES ADJUSTED EBITDA RECONCILIATION BY SEGMENT SUCCESSOR COMPANY FOR THE THREE MONTHS ENDED MARCH 31, 2006 (in millions) Transportation Industrial Energy -------------------------- -------------------------- North Europe North Europe America and ROW America and ROW Other TOTAL -------- -------- -------- -------- -------- --------Net income (loss) $ (17.4) $ 9.1 $ 3.8 $ 8.2 $ (80.0) $ (76.3)Interest expense, net - - - - 18.3 18.3Income tax provision (benefit) - - - - 13.4 13.4 -------- -------- -------- -------- -------- --------EBIT $ (17.4) $ 9.1 $ 3.8 $ 8.2 $ (48.3) $ (44.6)Depreciation and amortization 8.0 6.7 2.6 8.3 6.3 31.9U.S. Attorney Settlement - - - - 23.8 23.8Take Charge expenses 3.6 1.5 - - - 5.1Reorganization items, net - - - - 1.8 1.8Restructuring and impairment, net 0.2 1.2 1.3 2.0 0.9 5.6Other restructuring costs included in cost of sales and general and administrative expenses 0.3 - 0.1 (0.2) - 0.2Currency remeasurement loss (gain) 0.1 0.4 - (0.1) (2.9) (2.5)Minority interest - - - - 0.4 0.4Unrealized gain on revaluation of warrants - - - - 0.4 0.4Loss (gain) on sale of capital assets 1.7 0.4 - 2.6 (9.0) (4.3)Other non-cash losses (gains) (0.6) - (0.2) 0.3 2.0 1.5 -------- -------- -------- -------- -------- --------Adjusted EBITDA $ (4.1) $ 19.3 $ 7.6 $ 21.1 $(24.6) $ 19.3 -------- -------- -------- -------- -------- --------*T*T 4Q FY2006 Net Sales and EBITDA by Segment (in millions) Transportation Industrial Energy ---------------------------- ---------------------------- North Europe North Europe CORPORATE America and ROW America and ROW & Other TOTAL ---------------------------- ---------------------------- 4Q FY06-------Net Sales $ 231.5 $ 223.8 $ 67.2 $ 208.1 -- $ 730.6EBITDA ($4.1) $ 19.3 $ 7.6 $ 21.1 ($24.6) $ 19.34Q FY05-------Net Sales $ 204.5 $ 225.2 $ 62.6 $ 220.5 -- $ 712.8EBITDA $ 3.1 $ 12.0 $ 6.9 $ 14.6 ($30.1) $ 6.5*T*T EXIDE TECHNOLOGIES AND SUBSIDIARIES ADJUSTED EBITDA RECONCILIATION BY SEGMENT SUCCESSOR COMPANY FOR THE TWELVE MONTHS ENDED MARCH 31, 2006 (in millions) Transportation Industrial Energy -------------------------- -------------------------- North Europe North Europe America and ROW America and ROW Other TOTAL -------- -------- -------- -------- -------- --------Net income (loss) $ (6.1) $ 24.4 $ 8.8 $ 39.7 $(239.5) $(172.7)Interest expense, net - - - - 69.5 69.5Income tax provision (benefit) - - - - 16.0 16.0 -------- -------- -------- -------- -------- --------EBIT $ (6.1) $ 24.4 $ 8.8 $ 39.7 $(154.0) $ (87.2)Depreciation and amortization 29.7 31.6 10.9 33.1 17.1 122.4U.S. Attorney Settlement - - - - 23.8 23.8Take Charge expenses 3.6 1.5 - - - 5.1Reorganization items, net - - - - 6.2 6.2Restructuring and impairment, net 0.5 5.8 3.1 8.3 4.0 21.7Other restructuring costs included in cost of sales and general and administrative expenses 0.7 0.3 0.1 - - 1.1Currency remeasurement loss (gain) 1.8 0.4 0.3 (0.1) 7.8 10.2Minority interest - - - - 0.5 0.5Unrealized gain on revaluation of warrants - - - - (9.1) (9.1)Loss (gain) on sale of capital assets 3.2 0.7 8.5 2.8 (7.2) 8.0Other non-cash losses (gains) (0.6) - (0.2) 0.3 2.3 1.8 -------- -------- -------- -------- -------- --------Adjusted EBITDA $ 32.8 $ 64.7 $ 31.5 $ 84.1 $(108.6) $ 104.5 -------- -------- -------- -------- -------- --------*T*TFY2006 Net Sales and EBITDA by Segment(in millions) Transportation Industrial Energy ---------------------------- ---------------------------- North Europe North Europe CORPORATE America and ROW America and ROW & Other TOTAL ---------------------------------------------------------2006----Net Sales $ 913.3 $ 810.9 $ 275.0 $ 820.7 -- $2,819.9EBITDA $ 32.8 $ 64.7 $ 31.5 $ 84.1 ($108.6) $ 104.52005----Net Sales $ 847.6 823.2 $ 223.0 $ 797.1 -- $2,690.9EBITDA $ 50.5 $ 69.0 $ 29.5 $ 68.9 ($112.2) $ 105.7*T