Exide Shares Sink as Co. Suspends Vernon, CA Plant, Looking for Replacement Supply of Lead

Exide Technologies

is suspending operations at its Vernon secondary lead recycling facility in compliance with an Order dated April 24, 2013 from the California Department of Toxic Substances Control (DTSC). The DTSC alleges that the Company's underground stormwater system is not in compliance with State of California requirements and alleges the Company's furnace emissions are not meeting applicable DTSC health risk standards. The Company will comply with the Order from the DTSC and is suspending operations in Vernon while evaluating its legal and regulatory remedies. At this time the Company does not know how long the suspension of operations at the Vernon facility will last. The Vernon facility provides a significant portion of the Company's domestic lead requirements. Exide currently operates two other active secondary lead recycling facilities in the U.S. which continue to supply lead for the Company's domestic manufacturing facilities. Exide is evaluating its ability to purchase lead on the open market as well as seeking to negotiate agreements with third-party lead recyclers to provide some or all of the internal lead requirements that would have been provided from the Vernon facility.