Exide Technologies (XIDE)

Overview

Net loss for fiscal 2004 was $114,083, or $4.17 per basic and diluted share versus fiscal 2003 net loss of $140,885, or $5.14 per basic and diluted share. Included in fiscal 2004 consolidated net loss were reorganization

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items in connection with the bankruptcy of $67,042, restructuring costs of $52,708 ($35,326 after tax) and a charge of $15,593 for the cumulative effect of a change in accounting principle. Included in the consolidated net loss for fiscal 2003 were reorganization items of $36,370, restructuring costs of $25,658 and a non-cash charge of $37,000 for goodwill impairment resulting from an evaluation of results and updated projections of the Industrial Energy Europe and ROW segment, following the deterioration of this segment’s performance. In addition, currency remeasurement gains of $43,846 and $22,753, primarily on U.S. dollar denominated debt in Europe, have been recognized in Other (income) expense, net in fiscal 2004 and 2003, respectively.

Overview

Net loss for fiscal 2003 was $140,885, or $5.14 per diluted share versus fiscal 2002 net loss of $304,082 or $11.35 per diluted share. Included in the consolidated net loss for fiscal 2003 is a non-cash charge of $37,000 for goodwill impairment resulting from an evaluation of results and updated projections of the Industrial Energy Europe and ROW segment, following the deterioration of this segment’s performance. Results also include fiscal 2003 restructuring costs of $25,658 and reorganization items in connection with the Bankruptcy of $36,370. Fiscal 2002 results included a goodwill impairment charge of $105,000 in the Industrial North America segment, restructuring costs of $33,122 related to work force reductions and a $13,873 charge related to debt-for-equity exchanges. In addition, the Company recorded a gain of $8,185 during fiscal 2002 relating to the early termination of a purchased research and development agreement with Lion Compact Energy, a privately held company conducting research in dual-graphite technology (“LCE”). In addition, currency remeasurement loss

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(gain) of ($23,753) and $5,108, primarily on U.S. dollar denominated debt in Europe, have been recognized in Other (income) expense, net in fiscal 2003 and 2002, respectively.

Overview

Net income for the nine months of fiscal 2005 was $1,326,050 versus net loss for the nine months of fiscal 2004 of $63,643. The nine months of fiscal 2005 results include a goodwill impairment charge of $399,388, restructuring costs of $13,588, reorganization items in connection with the bankruptcy of $24,088, an income tax charge of $34,500 resulting from a change in valuation allowances, gain on discharge of liabilities subject to compromise of $1,558,839, gain on Warrants of $61,488 and gain on Fresh Start accounting adjustments of $228,371. The nine months fiscal 2004 results include restructuring costs of $19,974, reorganization items in connection with the bankruptcy of $45,917 and cumulative effect of change in accounting principle of $15,593. In addition, net currency remeasurement (losses) gains of $(18,806) and $40,244, primarily on U.S. dollar denominated debt in Europe and an outstanding foreign currency forward contract, have been recognized in Other (income) expense, net in the nine months of fiscal 2005 and 2004, respectively.