Exide Technologies Reports First Quarter 2007 Results

Consolidated net sales for the 2007 first quarter were $683.2million versus $669.3 million for first quarter 2006. A slight drop insales volume, primarily in the Transportation segments during thequarter was offset by pricing improvements that have been phased inthroughout all segments over the past fiscal year.

The Company had a net loss of $37.9 million or ($1.51) per sharefor the first quarter of 2007, compared with a net loss of $35.7million or ($1.43) per share for the 2006 first quarter. The increasein net loss is primarily attributable to an increase in restructuringcharges of approximately $6 million driven principally by the April2006 closing of the Company's automotive battery plant in Shreveport,Louisiana, and to a $6.2 million increase in interest expenseresulting from higher debt and higher rates principally as a result ofamendments to our credit agreement at the end of the last fiscal year.These were offset, to a degree, by improved margins.

Combined adjusted EBITDA in the first quarter of fiscal 2007 was$27.2 million, which includes $3 million of expenses for professionalfees relating to the now withdrawn potential sale of the Company'sIndustrial Energy Europe and Rest of World business segment, still a43 percent increase from $19 million in the first quarter of fiscalyear 2006. All business segments contributed to the overall increase.(See tables).

Exide's President and Chief Executive Officer, Gordon A. Ulsh,commented that although Exide continued to show improvement in thefirst quarter of fiscal 2007, the Company still has much work to do."We are now beginning to realize some tangible benefits from theactions that we took during the past year. Although our pricingadjustments have caused a slight reduction in sales volume, the neteffect is an overall increase in year-over-year revenue, gross profit,gross margin and adjusted EBITDA. Additionally, increases in the costof lead have been offset by our more favorable pricing structure. Weare also seeing a leveling off and greater stability of lead prices aswe continue to pursue more cost effective lead procurement methodsincluding continued emphasis on securing spent batteries from ourcustomers as well as from targeted long-term contracts with corebrokers."

"First quarter 2007 also marked the first period in which weallocated certain corporate expenses of an operational nature to theindividual business segments that incurred them. This provides us witha more accurate picture of segment adjusted EBITDA," Mr. Ulsh said."We are encouraged by our 2007 first quarter results but recognizethat much remains to be done as we strive to achieve our full yearobjectives."

The Company uses adjusted EBITDA as a key measure of itsoperational financial performance, as it is an important element ofits bank agreement covenants. This measure underlies the Company'soperational performance and excludes the nonrecurring impact of theCompany's current restructuring actions. Adjusted EBITDA is defined asearnings before interest, taxes, depreciation, amortization andrestructuring charges. Our adjusted EBITDA definition also adjustsreported earnings for the effect of non-cash currency remeasurementgains or losses, the non-cash gain or loss from revaluation of theCompany's warrants liability, impairment charges and non-cash gains orlosses on asset sales, as well as specific exposure with respect to anhistoric fine levied on the Company several years ago. See thereconciliations of net losses to adjusted EBITDA in the attachments tothis release.

The Company previously announced that it will hold a conferencecall to discuss its results on Wednesday August 9, 2006 at 10:00 a.m.(EDT).

Dial-in number for US/Canada: (877) 563-6439

Dial-in number for international callers: (706) 758-9457

Conference ID: 3988826

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 North America,Transportation Europe and Rest of World, Industrial Energy NorthAmerica and 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 noncompliance,(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 the Company's mostrecent Report on Form 10-K for the period ended March 31, 2006 (xix)the Company's ability to consummate a rights offering and privateplacement of stock as noted in the Company's 8-K filed on June 29,2006, including obtaining appropriate shareholder approval, and (xx)the Company's significant pension obligations over the next severalyears.

Therefore, the Company cautions each reader of this press releasecarefully to consider those factors set forth above and those factorsdescribed in the Company's Form 10-Q filed on August 8, 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.

Financial tables attached
EXIDE TECHNOLOGIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS
ENDED JUNE 30, 2006 AND 2005
(In thousands, except per-share data)

For the Three Months Ended
--------------------------
June 30, 2006 June 30, 2005
------------- -------------
NET SALES $ 683,190 $ 669,332
COST OF SALES 573,511 567,116
------------- -------------
Gross profit 109,679 102,216
------------- -------------

EXPENSES:
Selling, marketing and advertising 68,506 71,073
General and administrative 45,994 43,738
Restructuring and impairment 8,884 2,901
Other (income) expense, net (3,492) 3,400
Interest expense, net 22,287 16,100
------------- -------------
142,179 137,212
------------- -------------
Loss before reorganization items,
income taxes, and minority interest (32,500) (34,996)
REORGANIZATION ITEMS, NET 1,607 1,372
INCOME TAX PROVISION (BENEFIT) 3,578 (754)
MINORITY INTEREST 211 95
------------- -------------
Net loss $ (37,896) $ (35,709)
============= =============
NET LOSS PER SHARE
------------- -------------
Basic and Diluted $ (1.51) $ (1.43)
============= =============
WEIGHTED AVERAGE SHARES
------------- -------------
Basic and Diluted 25,058 25,000
============= =============

EXIDE TECHNOLOGIES
CONDENSED CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2006 AND MARCH
31, 2006
(In thousands, except per-share data)
June 30, 2006 March 31, 2006
------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 37,029 $ 32,161
Restricted cash 629 561
Receivables, net of allowance for
doubtful accounts of $26,041 and
$21,637 589,628 617,677
Inventories 437,663 414,943
Prepaid expenses and other 26,503 30,243
Deferred financing costs, net 3,248 3,169
Deferred income taxes 11,341 11,066
------------- -------------
Total current assets 1,106,041 1,109,820
------------- -------------
Property, plant and equipment, net 684,717 685,842
------------- -------------
Other assets:
Other intangibles, net 191,322 186,820
Investments in affiliates 4,863 4,783
Deferred financing costs, net 14,716 15,196
Deferred income taxes 58,974 56,358
Other 23,100 24,090
------------- -------------
292,975 287,247
------------- -------------
Total assets $2,083,733 $ 2,082,909
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $ 11,794 $ 11,375
Current maturities of long-term debt 5,209 5,643
Accounts payable 353,374 360,538
Accrued expenses 294,689 298,631
Warrants liability 1,250 2,063
------------- -------------
Total current liabilities 666,316 678,250
Long-term debt 701,827 683,986
Noncurrent retirement obligations 342,355 333,248
Deferred income tax liability 34,398 33,590
Other noncurrent liabilities 116,412 116,430
------------- -------------
Total liabilities 1,861,308 1,845,504
------------- -------------
Commitments and contingencies -- --
Minority interest 13,413 12,666
------------- -------------
STOCKHOLDERS' EQUITY
Common stock, $0.01 par value, 61,500
shares authorized, 24,551 and 24,546 shares
issued and outstanding 245 245
Preferred stock, $0.01 par value, 1,000
shares authorized, 0 shares issued
and outstanding -- --
Additional paid-in capital 889,048 888,647
Accumulated deficit (677,551) (639,655)
Accumulated other comprehensive loss (2,730) (24,498)
------------- -------------
Total stockholders' equity 209,012 224,739
------------- -------------
Total liabilities and stockholders'
equity $2,083,733 $2,082,909
------------- -------------
EXIDE TECHNOLOGIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS
ENDED JUNE 30, 2006 AND 2005
(In thousands)
For the Three Months Ended
--------------------------
June 30, 2006 June 30, 2005
------------- ------------
Cash Flows From Operating Activities:
Net loss $ (37,896) $ (35,709)
Adjustments to reconcile net loss
to net cash provided by (used in)
operating activities--
Depreciation and amortization 30,464 30,341
Unrealized gain on Warrants (813) (8,126)
Net loss (gain) on asset sales 2,803 1,596
Deferred income taxes (591) -
Provision for doubtful accounts 1,956 1,426
Non-cash provision for restructuring 1,207 5
Reorganization items, net 1,607 1,372
Minority interest 211 95
Amortization of deferred financing costs 814 454
Changes in assets and liabilities --
Receivables 47,526 42,282
Inventories (9,388) (22,687)
Prepaid expenses and other 4,643 2,147
Payables (19,520) (18,414)
Accrued expenses (15,245) (17,058)
Noncurrent liabilities (3,318) (5,192)
Other, net (3,826) 11,962
------------- ------------
Net cash provided by (used in)
operating activities 634 (15,506)
------------- ------------
Cash Flows From Investing Activities:
Capital expenditures (7,967) (11,545)
Proceeds from sales of assets 97 9,982
------------- ------------
Net cash used in investing
activities (7,870) (1,563)
------------- ------------
Cash Flows From Financing Activities:
Increase in short-term borrowings 9 11,352
Borrowings under Senior Secured
Credit Facility 152 -
Currency Swap - (12,084)
Increase in other debt 11,005 9,733
Financing costs and other 4 -
------------- ------------
Net cash provided by financing
activities 11,170 9,001
------------- ------------
Effect of Exchange Rate Changes on
Cash and Cash Equivalents 934 (1,766)
------------- ------------
Net Increase (Decrease) In Cash
and Cash Equivalents 4,867 (9,834)
Cash and Cash Equivalents, Beginning
of Period 32,161 76,696
------------- ------------
Cash and Cash Equivalents, End
of Period $ 37,029 $ 66,862
------------- ------------
EXIDE TECHNOLOGIES AND SUBSIDIARIES
ADJUSTED EBITDA RECONCILIATION BY SEGMENT
FOR THE THREE MONTHS ENDED JUNE 30, 2006
(In millions)



Industrial
Transportation Energy
----------------- --------------
Europe Europe
North and North and
America ROW America ROW Other Total
--------- ------ -------- ----- ------ --------

Net income (loss) ($4.8) ($6.1) $ 7.5 $ 3.6 ($38.1) ($37.9)

Interest expense, net - - - - 22.3 22.3

Income tax provision
(benefit) - - - - 3.6 3.6
------ ------ ------ ------ ------ -------

EBIT ($4.8) ($6.1) $ 7.5 $ 3.6 ($12.2) ($12.0)

Depreciation and
amortization 7.4 8.2 2.5 8.9 3.5 30.5

Take Charge 0.6 0.3 - - - 0.9

Reorganization items,
net - - - - 1.6 1.6

Restructuring and
impairment, net 6.0 1.3 0.7 0.8 0.1 8.9

Other restructuring
costs included in
cost of sales and
general and
administrative
expenses 0.2 - - - 0.1 0.3

Currency
remeasurement loss
(gain) 0.8 (0.3) 0.3 0.1 (6.5) (5.6)

Gain on revaluation
of foreign currency
forward contract - - - - - -

Minority interest - - - - 0.2 0.2

Unrealized gain on
revaluation of
warrants - - - - (0.8) (0.8)

Loss (gain) on sale
of capital assets 2.9 - - 0.1 (0.2) 2.8

Other non-cash losses
(gains) (0.1) 0.1 0.1 (0.2) 0.5 0.4

------ ------ ------ ------ ------ -------
Adjusted EBITDA $ 13.0 $ 3.5 $ 11.1 $ 13.3 ($13.7)$ 27.2
====== ====== ====== ====== ====== =======
EXIDE TECHNOLOGIES AND SUBSIDIARIES
ADJUSTED EBITDA RECONCILIATION BY SEGMENT
FOR THE THREE MONTHS ENDED JUNE 30, 2005
(In millions)


Industrial
Transportation Energy
----------------- --------------
Europe Europe
North and North and
America ROW America ROW Other Total
--------- ------ -------- ----- ------ -------

Net income (loss) $ 4.1 $(1.6) $ 4.4 $ 9.6 $(52.2)$(35.7)

Interest expense, net - - - - 16.1 16.1
Income tax provision
(benefit) - - - - (0.8) (0.8)

----- ----- ----- ----- ------ ------
EBIT 4.1 (1.6) 4.4 9.6 (36.9) (20.4)

Depreciation and
amortization 7.0 8.6 2.7 8.4 3.6 30.3

Reorganization items,
net - - - - 1.4 1.4

Restructuring and
impairment 0.4 0.4 0.4 1.1 0.6 2.9

Other restructuring
costs included in
cost of sales &
general and
administrative
expenses 0.2 0.2 - - 0.2 0.6

Currency
remeasurement loss
(gain) - - - - 11.7 11.7

Gain on revaluation
of foreign currency
forward contract - - - - (1.1) (1.1)

Minority interest - - - - 0.1 0.1

Unrealized gain on
revaluation of
warrants - - - - (8.1) (8.1)

Loss (gain) on sale
of capital assets 0.3 0.1 - - 1.1 1.5

Other non-cash losses
(gains) 1.0 - (0.1) 0.1 (0.9) 0.1

Corporate Allocation,
proforma (4.1) (6.4) (1.2) (6.3) 18.0 -

----- ----- ----- ----- ------ ------
Proforma Adjusted EBITDA
to give effect to an
allocation of certain
Corporate Costs $ 8.9 $ 1.3 $ 6.2 $12.9 $(10.3)$ 19.0
===== ===== ===== ===== ====== ======
EXIDE TECHNOLOGIES AND SUBSIDIARIES
Comparative 1Q Net Sales and EBITDA by Segment
(In millions)


Industrial
Transportation Energy
-------------- -------------
North Europe North Europe Unallocated
------ -------- ----- ------- -----------
America and ROW America and ROW Corporate TOTAL
------- ------- ------- ------- ---------- -----

1Q FY07
------------------------
Net Sales $214.5 $182.8 $72.9 $213.0 $ - $683.2
Adjusted EBITDA $ 13.0 $ 3.5 $11.1 $ 13.3 $(13.7)$ 27.2

1Q FY06
------------------------
Net Sales $218.2 $179.4 $67.4 $204.3 $ - $669.3
Adjusted EBITDA See
note (1) $ 8.9 $ 1.3 $ 6.2 $ 12.9 $(10.3)$ 19.0

Note (1): Includes proforma effect of the allocation of certain
Corporate Costs.