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EnerSys Acquires German Battery Manufacturer

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READING, Pa., Oct. 12 /PRNewswire-FirstCall/ -- EnerSys (NYSE: ENS), the world's largest manufacturer, marketer and distributor of industrial batteries, announced today that it completed the acquisition of Gerate- und Akkumulatorwerk Zwickau GmbH (GAZ), effective October 11. The total purchase price for this transaction was approximately euro 3.0 million and will be financed using existing EnerSys credit facilities. GAZ is a producer of specialty nickel-based batteries utilized primarily in the energy, rail, telecommunications and uninterruptible power supply (UPS) industries worldwide.

GAZ, based in Zwickau, Germany, had sales of approximately euro 8 million (approximately $9 million) for its year ending December 31, 2004. This transaction is expected to be accretive to EnerSys' net earnings for the current fiscal year ending March 31, 2006.

John D. Craig, chairman, president and CEO of EnerSys, said "The GAZ acquisition further enhances our ability to serve both existing EnerSys and GAZ customers with the most complete line of battery offerings available. The acquisition of GAZ opens new markets and expands our customer base, allowing for the continued growth of EnerSys."

Ray Kubis, president, EnerSys Europe, explained, "This new business will complement EnerSys' existing production and sales of specialty nickel-based batteries for high-integrity applications for the aerospace, UPS and rail markets. We continue to further develop our product lines to better serve our customers with the highest quality DC power worldwide and to focus on steadily growing markets, including oil and gas, energy and rail."

Caution Concerning Forward-Looking Statements

This press release (and oral statements made regarding the subjects of this release) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, but are not limited to, (i) statements regarding EnerSys' plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts, including statements identified by words such as "expects," "anticipates," " intends," 'plans," "believes," 'seeks," 'estimates," "will" or words of similar meaning; and (ii) statements about the benefits of the acquisition of GAZ's nickel- based battery business, including any impact on financial and operating results and estimates, and any impact on EnerSys' market position that may be realized from the proposed acquisition.

These forward-looking statements are based upon management's current beliefs or expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies many of which are beyond our control. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: (1) our ability to successfully integrate GAZ's nickel-based battery business; (2) the possibility that EnerSys may not realize revenue benefits from the proposed acquisition within expected time frames; (3) operating costs and business disruption following the proposed acquisition, including possible adverse effects on relationships with employees may be greater than expected; and (4) competition may adversely affect GAZ's business and result in customer loss. EnerSys does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date such forward-looking statement is made.

For more information, contact Richard Zuidema, executive vice president, EnerSys, P.O. Box 14145, Reading, PA 19612-4145, USA. Tel: 800-538-3627; Website: http://www.enersys.com.

EDITOR'S NOTE: EnerSys is the world leader in stored energy solutions for industrial applications, manufactures and distributes reserve power and motive power batteries, chargers, power equipment, and battery accessories to customers worldwide. Motive power batteries are utilized in electric forklift trucks and other commercial electric powered vehicles. Reserve power batteries are used in the telecommunication and utility industries, uninterruptible power suppliers, and numerous applications requiring standby power. The company also provides aftermarket and customer support services to its customers from over 100 countries through its sales and manufacturing locations around the world.

More information regarding EnerSys can be found at http://www.enersys.com.

SOURCE  EnerSys
    -0-                             10/12/2005
    /CONTACT:  Rebecca Simon, +1-215-453-8700, for EnerSys/
    /Web site:  http://www.enersys.com /
    (ENS)

CO:  EnerSys
ST:  Pennsylvania, Germany
IN:  OIL
SU:  TNM

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2270 10/12/2005 08:00 EDT http://www.prnewswire.com
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