EXIDE ELECTRONICS UPDATES STATUS OF ITS FEDERAL BUSINESS

Raleigh, N.C., February 9, 1996--Exide Electronics Group, Inc.
(NASDAQ:XUPS), today announced an expansion of its General Services
Administration (GSA) schedule to include an assortment of Powerware
Prestige and Plus uninterruptible power systems (UPS). In January 1995,
the Company announced a multi-year federal supply schedule contract with
the GSA for UPS, associated back-up batteries and accessories effective
through February 1997.

"In yesterday's release of first quarter earnings, I stated that the
federal government continues to be the Company's largest customer, "said
James A. Risher, President and Chief Executive Officer. "We commented on
the status of the protest by two of our competitors of an Air Force
Logistics Command (ALC) contract award. While the continued dispute of the
contract and the ultimate outcome of the protest could negatively impact
revenues from new shipments under this particular contract, it is
important to emphasize that the Company's federal government activities go
well beyond this one contract. We still expect to achieve approximately
$50-60 million of government business from all government related
opportunities in fiscal 1996.

The Company's federal business includes a number of contracts. These
requirements contracts include four Navy contracts and two Air Force
contracts. In addition, the Company's Federal Systems Division continues
to work on other substantive procurement actions still in the proposal
stage.

The four Navy contracts provide an array of UPS products from 1 through 750
kVA, as well as installation and support services. Certain of these
products are used in strategic military operations and, therefore, are
highly customized. Standard products are provided to the Navy for
applications in lower power ratings. Other government agencies have also
utilized the Navy contracts under interagency agreements.

In 1988 the Air Force awarded the largest UPS requirements contract in the
history of the UPS industry to the Company. Under this contract and
through an interagency agreement, the FAA selected Exide Electronics as
the exclusive source for power protection systems and services for 25
sites in its National Airspace Modernization Program. Exide Electronics
has already provided to the FAA over $300 million in products and services
as of December 1995. As the completion of the program occurs over the next
two years, the Company expects to recognize an additional $50 million in
revenues from the FAA.

As of the first quarter of fiscal year 1996, Exide Electronics had
completed all product shipments and installation services at 13 sites.
Installation continues at an additional eight sites and four more are in
the planning stage. Exide Electronics also completed a 20,000 square foot
systems test and orientation facility for the FAA in 1992.

In June 1995, Exide Electronics was awarded a second major Air Force
contract with the ALC. The contract covers a three-year period with two
one-year extension options. Revenues under this contract depend on the
actual requirements, and orders, if any, of the Air Force and other
agencies which can utilize the contract.

As previously reported, the General Accounting Office (GAO) sustained the
protest of this contract. The GAO did not recommend termination of the
contract, but did recommend that the Air Force revise its request for
proposal, solicit new bids and then re-evaluate the award of the contract
based upon these new proposals. The Company and the Air Force have filed
with the GAO separate requests that the GAO reconsider its decision. Until
the GAO decides such requests for reconsideration, the Air Force has
advised the Company that further orders and work on a previously-issued
order are temporarily suspended until further notice. In its request for
reconsideration, the Company has requested that the GAO reverse its
initial decision, citing factual and legal errors in the GAO decision,
including GAO's apparent disregard of its procedural rules. The Air Force
request for reconsideration asks the GAO, among other things, to provide
the Air Force with an additional, alternative recommendation, which would
give the Air Force the option to re-evaluate existing offers without
changing its request for proposal. That alternative would authorize, but
not require, the Air Force to terminate the existing contract with the
Company and select an offeror other than the Company. The Company has
vigorously opposed the Air Force's request, maintaining that the Air Force
would violate the principles of fairness in the Competition in Contracting
Act if the Air Force were permitted to proceed as requested. The GAO has
not indicated when it will decide the requests for reconsideration. There
can be no assurance as to the issuance of future orders by the Air Force
to Exide Electronics, the outcome of any re-evaluation by the Air Force of
its award of the contract to Exide Electronics, or the motions for
reconsideration.

"Through a multitude of procurement vehicles, Exide Electronics has
developed a unique capability to provide the broadest range of UPS
products and services to the Federal government", concluded Risher.. "We
are proud of our long-standing relationship and believe that it provides
great benefits to the government."

Headquartered in Raleigh, NC, Exide Electronics provides Strategic Power
Management solutions to a broad range of businesses and institutions
worldwide, including many Fortune 1000 companies. Exide Electronics'
products are used for financial, medical, industrial, telecommunications,
military, and aerospace applications - wherever continuous power is
essential to daily operations. In fiscal 1995, Exide Electronics had
revenues of $391 million and pro forma net income of $13 million.
 
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