Simula Continues Consolidation To Strengthen Defense Operations; Company Sees Savings In Excess...

Business Editors & High-Tech Writers

TEMPE, Ariz.--(BUSINESS WIRE)--Jan. 22, 2003

Simula Inc. (AMEX:SMU) announced that it will close its Asheville, North Carolina, facility and consolidate operations, engineering and business unit leadership to its Defense Group facility

in Phoenix. The North Carolina facility currently is the headquarters for Simula's personnel equipment product base and includes survival and equipment vest ensembles, flotation collars that deploy to protect personnel ejected over water, and its patented vacuum-packed emergency bailout parachute system.

The move is expected to result in excess of $1 million savings annually. The consolidation will eliminate duplication in SG&A and overhead costs and result in increased efficiencies in the Defense Group. The move of the Asheville operations to Phoenix is underway and is expected to be complete in Q1 2003.

"The Company has capacity in Phoenix, making it logical to consolidate here," said Brad Forst, President and CEO.

"This is one more step in our plan for integration of operations with the rest of our Defense business that will be beneficial to the efficiency of our operations, and importantly, will allow us to more effectively serve our customers through marketing synergies," Forst added.

The Company reported that demand for the personnel equipment product base remains strong. The vest, flotation collar, and parachute product teams are engaged in development programs for a range of U.S. Department of Defense and foreign military customers. The Company anticipates increasing production of its parachute line to support various U.S. Air Force customers and introducing new protective products built around Simula's proprietary line of transparent polymers during 2003.

Simula designs and makes systems and devices that save human lives. Its core markets are aviation safety, personnel safety, and military ground vehicle safety. Simula's core technologies include inflatable restraints, energy-absorbing seating systems, advanced polymer materials, lightweight transparent and opaque armor products, personnel protective equipment and emergency bailout parachutes. For more information, go to 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 cost of operations, expected orders, revenues and profits. Factors pertinent to the Company's ability to meet expectations include Congressional defense appropriations and DoD budgets. Factors pertinent to product sales include customer needs, schedules, and military procurement budgets. 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.