Exide Receives Court Approval for Financing Package

Exide Technologies (Princeton, NJ) announced that it has received interim approval from the US Bankruptcy Court for the District of Delaware for $375 million in debtor-in-possession (DIP) financing to replace its current DIP financing, which is set to mature on February 15, 2004. The replacement DIP facility will be provided by a group of lenders. In addition to immediately replacing the prior DIP financing, the replacement DIP refinances the company's European accounts receivable securitization facility, and provides additional working capital borrowing availability of up to $40 million.

The replacement DIP facility includes an aggregate financing commitment of $500 million and includes a standby commitment to refinance the company's 9.125 percent senior notes, which are due April 15, 2004, conditioned on the Bankruptcy Court's issuance of a final order approving the replacement DIP, the company's filing of a plan of reorganization and the Bankruptcy Court's approval of a disclosure statement related thereto reasonably satisfactory to the lending group.

Finally, the lending group has extended its commitment to May 15, 2004, to provide financing upon Exide's emergence from Chapter 11. The replacement DIP and financing commitments are subject to customary financial and legal conditions, and the company will seek final approval of the replacement DIP facility on March 15, 2004.