SAFETY COMPONENTS INTERNATIONAL ANNOUNCES
SALE OF VALENTEC SYSTEMS
GREENVILLE, S.C., September 1, 2000 /PRNewswire/ - Safety Components
International, Inc. ("Safety Components") (OTCBB:ABAG), a leading, low cost
supplier of automotive airbag fabric and cushions in the United States,
announced today the sale of Valentec Systems, Inc. to an investor group headed
by Victor Guadagno, Valentec System's President, for aggregate consideration of
approximately $4.15 million in cash. The proceeds from the sale will be used to
pay down Safety Components' senior credit facility. The sale was approved by the
District Court of the State of Delaware in conjunction with that court's
approval of Safety Components' plan of reorganization to emerge from its
pre-arranged chapter 11 case.
John C. Corey, the Company's President and Chief Operating Officer, stated,
"The sale of Valentec Systems is a part of the previously announced plan to
restructure Safety Components' business to focus on its core manufacturing
operations. The Company has significantly improved its operations over the past
few months, increasing productivity and profitability from the core airbag
automotive business. The Company expects to capitalize on continuing growth
opportunities in the airbag automotive business. The sale of Valentec Systems, a
defense contractor, is an important step in the Company's plan to focus on the
automotive markets opportunities. This sale allows both Companies to focus on
their core strengths."
This press release contains forward-looking statements. The Company wishes
to caution the reader of this press release that such forward looking statements
are subject to various known and unknown risks and uncertainties, including the
possibility that the Company's stated goals will not be fulfilled in whole or in
part. Additional information on factors that could potentially affect the
Company's financial results may be found in the Company's filings with the
Securities and Exchange Commission.
