Exide Earns First-Ever Production Contract Awarded by U.S. Navy for Valve-Regulated Submarine Batteries; Shift to Advanced Product Prompts Closure of Kankakee, Illinois, Battery Plant

For more than 50 years, U.S. Navy submarines have relied onflooded battery technology. During the past decade, Exide's GNBIndustrial Power group has been the sole supplier of these batteries.

Recently, however, Exide's GNB Industrial Power group applied itscommercial-market Absolyte(R) valve-regulated lead-acid (VRLA)technology to become the first industrial battery company to qualify aVRLA submarine battery for U.S. Navy use.

"With the advancement of submarine technology, the Navy approachedExide with its desire to increase power density, eliminate gassing,reduce maintenance and enhance safety on the submarine," said MitchBregman, President - Industrial Energy Americas at Exide. "Working inconjunction with the Navy during the past few years, we havedetermined that valve-regulated technology can replace the floodedbattery technology prevalent on submarines for more than 50 years.

"We are pleased to have been a long-term strategic partner of theU.S. Navy for more than 50 years," Mr. Bregman added. "We have enjoyeda solid working relationship and are proud to be at the forefront ofdeveloping the next evolution of battery technology for the U.S. Navysubmarine fleet."

Exide expects to deliver the first VRLA batteries to the U.S. Navyin 2006. The batteries will be produced at Exide's plant in Ft. Smith,Ark., where the Company currently manufactures its Absolyte andChampion(R) VRLA industrial batteries.

As a result of the U.S. Navy's transition to the advanced VRLAtechnology, Exide expects to cease production of flooded submarinebatteries later this year at its plant in Kankakee, Illinois. At thattime, the Company expects that it will permanently close the plant,which currently employs 62 people.

"For more than half a century, the Kankakee plant has played animportant role for both our Company and the nation," Mr. Bregman said."With the elimination of flooded battery technology for use in navysubmarines, we are forced to make the difficult decision to close theKankakee plant.

"The Exide management team would like to thank the many dedicatedteam members at the Kankakee plant and our suppliers, who have workedfor many years to produce a quality flooded submarine battery that hassupported the U.S. Navy and its submarine fleet," Mr. Bregman said.

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.

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.

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 of 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, and (c) statements of future economicperformance.

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) adverse reactions by creditors,vendors, customers, and others to the going-concern modification inthe Company's audit report for the fiscal year ended March 31, 2005,(ii) the Company's substantial debt and debt service requirements,which may restrict the Company's operational and financialflexibility, as well as impose significant interest and financingcosts and the Company's ability to comply with the covenants in itsdebt agreements or obtain waivers of noncompliance, (iii) the factthat lead, a major constituent in most of the Company's products,experiences significant fluctuations in market price and is ahazardous material that may give rise to costly environmental andsafety claims, (iv) risks involved in foreign operations such asdisruption of markets, changes in import and export laws, currencyrestrictions, currency exchange rate fluctuations and possibleterrorist attacks against U.S. interests, (v) the Company's exposureto fluctuations in interest rates on its variable debt, (vi) theCompany's ability to maintain and generate liquidity to meet itsoperating needs, (vii) the Company's ability to meet product orderrequirements, (viii) general economic conditions, (ix) the ability toacquire goods and services and/or fulfill labor needs at budgetedcosts, and (x) the Company's reliance on a single supplier for itspolyethylene battery separators.

Some of the factors contained herein, and other factors, areenumerated in further detail in the Company's most recent Form 10-Qfiled on August 9, 2005, as well as in the Company's RegistrationStatement on Form S-3 filed with the Securities and ExchangeCommission on July 15, 2005, because such factors have, in someinstances, affected and in the future could affect, the ability of theCompany to achieve its projected results and may cause actual resultsto differ materially from those expressed herein.

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