UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended July 31, 2002

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from ____________________ to ____________________

Commission File No. 1-9389

C&D TECHNOLOGIES, INC.
(Exact name of Registrant as specified in its charter)

Delaware 13-3314599
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)

1400 Union Meeting Road
Blue Bell, Pennsylvania 19422
(Address of principal executive office)
(Zip Code)

(215) 619-2700
(Registrant's telephone number, including area code)

_________________N/A_________________
(Former name, former address and former fiscal year, if changed since last
report)

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

YES X NO_____

Number of shares of the Registrant's Common Stock outstanding on August 30,
2002: 25,714,435

C&D TECHNOLOGIES, INC.
AND SUBSIDIARIES

INDEX

PART I. FINANCIAL INFORMATION Page No.

Item 1 - Financial Statements

Consolidated Balance Sheets -
July 31, 2002 and January 31, 2002.................. 3

Consolidated Statements of Income - Three and Six
Months Ended July 31, 2002 and 2001.................. 5

Consolidated Statements of Cash Flows -
Six Months Ended July 31, 2002 and 2001.............. 6

Consolidated Statements of Comprehensive Income -
Three and Six Months Ended July 31, 2002 and 2001.... 8

Notes to Consolidated Financial Statements............ 9

Report of Independent Accountants..................... 17

Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations... 18

Item 3 - Quantitative and Qualitative Disclosures
About Market Risk............................... 24

PART II. OTHER INFORMATION................................... 25

SIGNATURES................................................... 26

PART I. FINANCIAL INFORMATION

Item 1 - Financial Statements

C&D TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)

(Unaudited)
July 31, January 31,
2002 2002
---- ----
ASSETS

Current assets:
Cash and cash equivalents................... $ 8,296 $ 8,781
Accounts receivable, less allowance for
doubtful accounts of $2,218 and $2,278,
respectively........................... 45,782 44,968
Inventories................................. 53,470 61,674
Deferred income taxes....................... 9,650 10,156
Other current assets........................ 1,126 6,754
------- -------
Total current assets............. 118,324 132,333

Property, plant and equipment, net................ 122,154 131,207
Intangible and other assets, net.................. 22,829 24,659
Goodwill, net..................................... 112,890 107,359
------- -------
Total assets..................... $376,197 $395,558
======= =======

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Short-term debt............................. $ 14,823 $ 27,255
Accounts payable............................ 17,120 19,640
Accrued liabilities......................... 20,248 22,210
Income taxes................................ 2,218 -
Other current liabilities................... 8,199 8,214
------- -------
Total current liabilities........ 62,608 77,319

Deferred income taxes ............................ 2,653 2,602
Long-term debt.................................... 35,511 46,892
Other liabilities................................. 19,458 18,574
------- -------
Total liabilities................ 120,230 145,387
------- -------

The accompanying notes are an integral part of these statements.

C&D TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (continued)
(Dollars in thousands, except per share data)

(Unaudited)
July 31, January 31,
2002 2002
---- ----
Commitments and contingencies

Minority interest................................. 8,202 8,313

Stockholders' equity:
Common stock, $.01 par value, 75,000,000
shares authorized; 28,471,669 and
28,431,728 shares issued, respectively.. 285 284
Additional paid-in capital.................. 66,522 65,893
Treasury stock, at cost, 2,717,034 and
2,414,161 shares, respectively.......... (35,054) (29,743)
Accumulated other comprehensive loss........ (228) (3,057)
Retained earnings........................... 216,240 208,481
------- -------
Total stockholders' equity....... 247,765 241,858
------- -------
Total liabilities and
stockholders' equity........... $376,197 $395,558
======= =======

The accompanying notes are an integral part of these statements.

C&D TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)

(Unaudited) (Unaudited)
Three months ended Six months ended
July 31, July 31,
2002 2001 2002 2001
---- ---- ---- ----

Net sales............................ $ 84,292 $125,493 $168,354 $280,876
Cost of sales........................ 64,090 87,984 129,506 197,334
------- ------- ------- -------
Gross profit..................... 20,202 37,509 38,848 83,542

Selling, general and
administrative expenses.......... 9,044 11,716 17,853 25,425
Research and development
expenses......................... 2,532 2,727 4,894 5,434
------- ------- ------- -------
Operating income................. 8,626 23,066 16,101 52,683

Interest expense, net................ 822 1,708 2,006 3,758
Other expense, net................... 116 68 110 126
------- ------- ------- -------
Income before income taxes and
minority interest............. 7,688 21,290 13,985 48,799

Provision for income taxes........... 2,844 7,740 5,174 18,056
------- ------- ------- -------
Net income before minority
interest...................... 4,844 13,550 8,811 30,743

Minority interest.................... 140 450 (17) 796
------- ------- ------- -------
Net income....................... $ 4,704 $ 13,100 $ 8,828 $ 29,947
======= ======= ======= =======

Net income per share - basic......... $ .18 $ .50 $ .34 $ 1.14
======= ======= ======= =======

Net income per share - diluted....... $ .18 $ .49 $ .34 $ 1.11
======= ======= ======= =======

Dividends per share.................. $ .02750 $ .01375 $ .04125 $ .02750
======= ======= ======= =======

The accompanying notes are an integral part of these statements.

C&D TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
Six months ended
July 31,
2002 2001
---- ----
Cash flows provided (used) by operating activities:
Net income...................................... $ 8,828 $ 29,947
Adjustments to reconcile net income to net
cash provided by operating activities:
Minority interest......................... (17) 796
Depreciation and amortization............. 12,250 15,414
Deferred income taxes..................... 557 70
Loss on disposal of assets................ 320 102
Changes in:
Accounts receivable................. (393) 17,160
Inventories......................... 8,829 2,201
Other current assets................ 38 (913)
Accounts payable.................... (680) (15,469)
Accrued liabilities................. (1,914) (4,407)
Income taxes payable................ 7,857 (2,137)
Other current liabilities........... (13) (2,572)
Other liabilities................... 891 108
Other, net................................ (2,636) 583
------- -------
Net cash provided by operating activities........... 33,917 40,883
------- -------
Cash flows provided (used) by investing activities:
Acquisition of property, plant and equipment.... (3,551) (16,774)
Proceeds from disposal of property, plant
and equipment................................ 602 28
------- -------
Net cash used by investing activities............... (2,949) (16,746)
------- -------
Cash flows provided (used) by financing activities:
Repayment of debt............................... (24,411) (32,117)
Proceeds from new borrowings.................... - 27,852
Financing cost of long-term debt................ (118) -
Proceeds from issuance of common stock, net..... 419 1,268
Purchase of treasury stock...................... (6,402) (7,280)
Payment of common stock dividends............... (1,073) (1,081)
------- -------

The accompanying notes are an integral part of these statements.

C&D TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(Dollars in thousands)

(Unaudited)
Six months ended
July 31,
2002 2001
---- ----

Net cash used by financing activities............. (31,585) (11,358)
------- -------
Effect of exchange rate changes on cash........... 132 (55)
------- -------
(Decrease) increase in cash and cash equivalents.. (485) 12,724

Cash and cash equivalents at beginning
of period...................................... 8,781 7,709
------- -------
Cash and cash equivalents at end of period........ $ 8,296 $ 20,433
======= =======

SCHEDULE OF NON CASH INVESTING
AND FINANCIAL ACTIVITIES

Decrease in property, plant, and
equipment acquisitions in
accounts payable............................... $ (957) $ (4,543)
======= =======

The accompanying notes are an integral part of these statements.

C&D TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in thousands)

(Unaudited) (Unaudited)
Three months ended Six months ended
July 31, July 31,
2002 2001 2002 2001
---- ---- ---- ----

Net income............................................... $ 4,704 $13,100 $ 8,828 $29,947

Other comprehensive (expense) income, net of tax:

Cumulative effect of accounting change................. - - - (103)

Net unrealized loss on derivative instruments.......... (286) (264) (67) (475)

Foreign currency translation adjustments............... 1,981 (144) 2,896 (773)
------ ------ ------ ------
Total comprehensive income............................... $ 6,399 $12,692 $11,657 $28,596
====== ====== ====== ======

The accompanying notes are an integral part of these statements.

C&D TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
(UNAUDITED)

1. INTERIM STATEMENTS

The accompanying interim consolidated financial statements of C&D
Technologies, Inc. (together with its operating subsidiaries, the "Company")
should be read in conjunction with the consolidated financial statements and
notes thereto contained in the Company's Annual Report to Stockholders for the
fiscal year ended January 31, 2002. The January 31, 2002 amounts were derived
from the Company's audited financial statements. The consolidated financial
statements presented herein are unaudited but, in the opinion of management,
include all necessary adjustments (which comprise only normal recurring items)
required for a fair presentation of the consolidated financial position as of
July 31, 2002 and the related consolidated statements of income and
comprehensive income for the three and six month periods ended July 31, 2002 and
2001 and the related consolidated statements of cash flow for the six months
ended July 31, 2002 and 2001. However, interim results of operations may not be
indicative of results for the full fiscal year.

2. NEW ACCOUNTING PRONOUNCEMENTS

On February 1, 2002, the Company adopted Statement of Financial Accounting
Standards ("SFAS") No. 142, "Goodwill and Other Intangible Assets." This
statement addresses financial accounting and reporting for acquired goodwill and
other intangible assets. As required by SFAS No. 142, the Company discontinued
amortizing the remaining balance of goodwill. All remaining and future acquired
goodwill will be subject to an impairment test annually (or more frequently if
impairment indicators arise), using a fair value-based approach. Other
intangible assets will continue to be amortized over their estimated useful
lives and assessed for impairment under SFAS No. 144, "Accounting for Impairment
or Disposal of Long-Lived Assets." SFAS No. 144 addresses financial accounting
and reporting for the impairment or disposal of long-lived assets. SFAS No. 144
supersedes SFAS No. 121 and the accounting and reporting provisions of
Accounting Principles Board Opinion No. 30.

In August 2001, the Financial Accounting Standards Board ("FASB") issued
SFAS No. 143, "Accounting for Asset Retirement Obligations." This statement
addresses financial accounting and reporting requirements for obligations
associated with the retirement of tangible long-lived assets and the associated
retirement costs. SFAS No. 143 is effective for fiscal years beginning after
June 15, 2002. The Company is currently in the process of evaluating the impact
SFAS No. 143 will have on its financial position and results of operations, if
any.

In July 2002, the FASB issued SFAS No. 146, "Accounting for Costs
Associated with Exit or Disposal Activities," which addresses the recognition,
measurement and reporting of costs associated with exit or disposal activities,
and supersedes Emerging Issues Task Force ("EITF") Issue No. 94-3, "Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit an
Activity (including Certain Costs Incurred in a Restructuring)." The principal
difference between SFAS No. 146 and EITF No. 94-3 relates to the requirements
for recognition of a liability for a disposal activity, (including those related
to employee termination benefits and obligations under operating leases and
other contracts), be recognized when the liability is incurred, and not
necessarily the date of an entity's commitment to an exit plan, as under EITF
No. 94-3. SFAS No. 146 also establishes that the initial measurement of a
liability recognized under SFAS No. 146 be based on fair value. The provisions
of SFAS No. 146 are effective for exit or disposal activities that are initiated
after December 31, 2002, with early application encouraged.

C&D TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
(UNAUDITED)

3. GOODWILL AND IDENTIFIED INTANGIBLE ASSETS

Goodwill:

In conjunction with the implementation of SFAS No. 142, the Company has
completed the transitional goodwill impairment test as of February 1, 2002 and
has determined that no impairment to goodwill existed. Net income and net income
per common share adjusted to exclude goodwill amortization is as follows:

Three months ended Six months ended
July 31, July 31,
2002 2001 2002 2001
---- ---- ---- ----

Reported net income...................... $4,704 $13,100 $8,828 $29,947
Goodwill amortization, net of tax........ - 933 - 1,956
----- ------ ----- ------
Adjusted net income...................... $4,704 $14,033 $8,828 $31,903
===== ====== ===== ======
Reported net income per
common share - basic.................... $ .18 $ .50 $ .34 $ 1.14
Goodwill amortization, net of tax........ - .04 - .08
----- ------ ----- ------
Adjusted net income per
common share - basic.................... $ .18 $ .54 $ .34 $ 1.22
===== ====== ===== ======
Reported net income per
common share - diluted.......... $ .18 $ .49 $ .34 $ 1.11
Goodwill amortization, net of tax........ - .03 - .08
----- ------ ----- ------
Adjusted net income per
common share - diluted.................. $ .18 $ .52 $ .34 $ 1.19
===== ====== ===== ======

C&D TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
(UNAUDITED)

3. GOODWILL AND IDENTIFIED INTANGIBLE ASSETS (continued)

During the six months ended July 31, 2002, no goodwill was acquired,
impaired or written off. Goodwill by operating segment was adjusted as follows:

Power Motive
Powercom Dynasty Electronics Power Total
-------- ------- ----------- ----- -----

Goodwill, January 31, 2002........................... $1,376 $57,939 $47,551 $493 $107,359
Assembled workforce reclassified..................... - - 879 - 879
Effect of exchange rate changes on goodwill.......... 1 105 4,546 - 4,652
----- ------ ------ --- -------
Goodwill, July 31, 2002.............................. $1,377 $58,044 $52,976 $493 $112,890
===== ====== ====== === =======

Identified Intangible Assets:

During the six months ended July 31, 2002, no acquisition-related
intangibles were acquired, impaired or written off.

Identified intangible assets as of July 31, 2002 consisted of the
following:

Accumulated
Gross Assets Amortization Net
------------ ------------ ---

Trade names................. $17,840 $(3,048) $14,792
Intellectual property....... 7,737 (5,111) 2,626
Other....................... 2,407 (927) 1,480
------ ------ ------
Total intangible assets..... $27,984 $(9,086) $18,898
====== ====== ======

Identified intangible assets as of January 31, 2002 consisted of the
following:

Accumulated
Gross Assets Amortization Net
------------ ------------ ---

Trade names................. $17,840 $(2,602) $15,238
Intellectual property....... 7,601 (4,706) 2,895
Other....................... 3,675 (1,251) 2,424
------ ------ ------
Total intangible assets..... $29,116 $(8,559) $20,557
====== ====== ======

Based on intangibles recorded at July 31, 2002, the annual amortization
expense is expected to be as follows (assuming current exchange rates):

2003 2004 2005 2006 2007
---- ---- ---- ---- ----

Trade names................. $ 892 $ 892 $ 892 $ 892 $ 892
Intellectual property....... 772 772 408 355 180
Other....................... 128 128 79 76 35
----- ----- ----- ----- -----
Total intangible assets..... $1,792 $1,792 $1,379 $1,323 $1,107
===== ===== ===== ===== =====

Amortization of identified intangibles was $898 for the six months ended
July 31, 2002.

C&D TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
(UNAUDITED)

4. INVENTORIES

Inventories consisted of the following:
July 31, January 31,
2002 2002
---- ----

Raw materials............................ $21,409 $26,202
Work-in-progress......................... 12,277 12,830
Finished goods........................... 19,784 22,642
------ ------
$53,470 $61,674
====== ======

5. INCOME TAXES

A reconciliation of the provision for income taxes from the statutory rate
to the effective rate is as follows:
Six months ended
July 31,
2002 2001
---- ----

U.S. statutory income tax....................... 35.0% 35.0%
State tax, net of federal income tax benefit.... 1.8 2.5
Foreign sales corporation....................... (0.4) (0.5)
Tax effect of foreign operations................ (0.1) (0.6)
Research and development credit................. (0.1) (0.1)
Other........................................... 0.8 0.7
---- ----
37.0% 37.0%
==== ====

6. NET INCOME PER COMMON SHARE

Net income per share - basic for the three and six month periods ended July
31, 2002 and 2001 is based on the weighted average number of shares of Common
Stock outstanding. Net income per share - diluted reflects the potential
dilution that could occur if stock options were exercised. Weighted average
common shares and common shares - diluted were as follows:

Three months ended Six months ended
July 31, July 31,
2002 2001 2002 2001
---- ---- ---- ----

Weighted average shares
of common stock
outstanding................................... 25,915,083 26,149,099 25,943,416 26,161,223
Assumed exercise of stock
options, net of shares
assumed reacquired............................ 225,323 702,586 263,766 745,484
---------- ---------- ---------- ----------
Weighted average common
shares - diluted.............................. 26,140,406 26,851,685 26,207,182 26,906,707
========== ========== ========== ==========

C&D TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share data)
(UNAUDITED)

7. CONTINGENT LIABILITIES

Environmental:

The Company is subject to extensive and evolving environmental laws and
regulations regarding the clean up and protection of the environment, worker
health and safety and the protection of third parties. These laws and
regulations include, but are not limited to: (i) requirements relating to the
handling, storage, use and disposal of lead and other hazardous materials used
in manufacturing processes and solid wastes; (ii) record keeping and periodic
reporting to governmental entities regarding the use of hazardous substances and
disposal of hazardous wastes; (iii) monitoring and permitting of air and water
emissions; and (iv) monitoring worker exposure to hazardous substances in the
workplace, and protecting workers from impermissible exposure to hazardous
substances, including lead, used in the Company's manufacturing process.

Notwithstanding the Company's efforts to maintain compliance with
applicable environmental requirements, if injury or damage to persons or the
environment arises from hazardous substances used, generated or disposed of in
the conduct of the Company's business (or that of a predecessor to the extent
the Company is not indemnified therefor), the Company may be held liable for
certain damages and for the costs of investigation and remediation, which could
have a material adverse effect on the Company's business, financial condition or
results of operations. However, under the terms of the purchase agreement with
Allied Corporation ("Allied") for the acquisition of the Company (the
"Acquisition Agreement"), Allied was obligated to indemnify the Company for any
liabilities of this type resulting from conditions existing at January 28, 1986
that were not disclosed by Allied to the Company in the schedules to the
Acquisition Agreement. These obligations have since been assumed by Allied's
successor in interest, Honeywell ("Honeywell").

The Company, along with numerous other parties, has been requested to
provide information to the United States Environmental Protection Agency (the
"EPA") in connection with investigations of the source and extent of
contamination at three lead smelting facilities (the "Third Party Facilities")
to which the Company had made scrap lead shipments for reclamation prior to the
date of the acquisition.

The Company and four other potentially responsible parties ("PRPs") agreed
upon a cost sharing arrangement for the design and remediation phases of a
project related to one of the Third Party Facilities, the former NL Industries
site in Pedricktown, New Jersey, acting pursuant to a Consent Decree. The PRPs
identified and sued additional PRPs for contribution. In April 2002 one of the
original four PRPs, Exide Technologies ("Exide"), filed for relief under Chapter
11 of Title 11 of the United States Code. On August 6, 2002, Exide notified the
PRPs that it will no longer be taking an active role in any further action at
the site and discontinued its financial participation. This results in a pro
rata increase in the liabilities of the other PRPs, including the Company.

The Company also responded to requests for information from the EPA and the
state environmental agency with regard to another Third Party Facility, the
"Chicago Site," in October 1991.

In August 2002, the Company was notified of its involvement as a PRP at the
NL Atlanta, Northside Drive Superfund site. The Company is currently reviewing
information regarding its involvement at this site.

Allied and/or Honeywell has accepted responsibility under the Acquisition
Agreement for potential liabilities relating to all Third Party Facilities other
than the aforementioned sites.

C&D TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share data)
(UNAUDITED)

7. CONTINGENT LIABILITIES (continued)

The Company is also aware of the existence of potential contamination at
its Huguenot, New York facility, which may require expenditures for further
investigation and remediation. Fluoride and other contamination in an inactive
lagoon exceeding the state's groundwater standards, which existed prior to the
Company's acquisition of the site, has resulted in the site being listed on the
registry of inactive hazardous waste disposal sites maintained by the New York
State Department of Environmental Conservation ("NYSDEC"). The prior owner of
the site is expected to ultimately bear some, as yet undetermined, share of the
costs associated with this matter. The NYSDEC has issued a Record of Decision
for the soil remediation portion of this site. However, a final remediation plan
for the ground water portion has not yet been finalized with or approved by the
State of New York.

The Company, together with Johnson Controls, Inc. ("JCI"), is conducting an
assessment and remediation of contamination at the Company's Dynasty Division
facility in Milwaukee, Wisconsin. The majority of this project was completed as
of October 2001. Under the purchase agreement with JCI, the Company is
responsible for (i) one-half of the cost of the on-site assessment and
remediation, with a maximum liability of $1,750, (ii) any environmental
liabilities at the facility that are not remediated as part of the current
project and (iii) environmental liabilities for claims made after the fifth
anniversary of the closing, i.e. March 2004, that arise from migration from a
pre-closing condition at the Milwaukee facility to locations other than the
Milwaukee facility, but specifically excluding liabilities relating to
pre-closing offsite disposal. JCI has retained all other environmental
liabilities, including off-site assessment and remediation.

In January 1999, the Company received notification from the EPA of alleged
violations of permit effluent and pretreatment discharge limits at its plant in
Attica, Indiana. The Company submitted a compliance plan to the EPA in April
2002. The Company is in active negotiations with both the EPA and Department of
Justice regarding a potential resolution of this matter, which is likely to
result in a penalty assessment.

The Company accrues reserves for liabilities in the Company's consolidated
financial statements and periodically reevaluates the reserved amounts for these
liabilities in view of the most current information available in accordance with
SFAS No. 5. Based on currently available information, management of the Company
believes that appropriate reserves have been established with respect to the
foregoing contingent liabilities and that they are not expected to have a
material adverse effect on the Company's business, financial condition or
results of operations.

C&D TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share data)
(UNAUDITED)

8. OPERATIONS BY INDUSTRY SEGMENT

The Company has the following four reportable business segments:

The Powercom Division manufactures and markets integrated reserve power
systems and components for the standby power market, which includes
telecommunications, uninterruptible power supplies and utilities. Integrated
reserve power systems monitor and regulate electric power flow and provide
backup power in the event of a primary power loss or interruption. The Powercom
Division also produces the individual components of these systems, including
reserve batteries, power rectifiers, system monitors, power boards and chargers.

The Dynasty Division manufactures and markets industrial batteries
primarily for the uninterruptible power supply, telecommunications and cable
markets. Major applications of these products include wireless and wireline
telephone infrastructure, CATV signal powering, corporate data center powering
and computer network back-up for use during power utility outages.

The Power Electronics Division manufactures and markets custom, standard
and modified-standard electronic power supply systems, including DC to DC
converters, for large original equipment manufacturers ("OEMs") of
telecommunications equipment, office products, computers and industrial
applications.

The Motive Power Division manufactures complete systems and individual
components (including power electronics and batteries) to power, monitor, charge
and test the batteries used in electric industrial vehicles, including fork-lift
trucks, automated guided vehicles and airline ground support equipment. These
products are marketed to end users in a broad array of industries, dealers of
fork-lift trucks and other material handling vehicles, and, to a lesser extent,
OEMs.

Summarized financial information related to the Company's business segments
for the three and six months ended July 31, 2002 and 2001 is shown below:

Power Motive
Powercom Dynasty Electronics Power
Division Division Division Division Consolidated
-------- -------- ----------- -------- ------------

Three months ended July 31, 2002:

Net sales................................ $ 35,668 $23,054 $12,493 $13,077 $ 84,292
Operating income (loss).................. $ 5,306 $ 4,018 $ 440 $(1,138) $ 8,626

Three months ended July 31, 2001:

Net sales................................ $ 65,673 $28,706 $15,187 $15,927 $125,493
Operating income (loss).................. $ 18,655 $ 4,885 $ (783) $ 309 $ 23,066

Six months ended July 31, 2002:

Net sales................................ $ 72,156 $44,110 $25,336 $26,752 $168,354
Operating income (loss).................. $ 11,310 $ 6,410 $ 576 $(2,195) $ 16,101

Six months ended July 31, 2001:

Net sales................................ $143,598 $62,143 $40,283 $34,852 $280,876
Operating income......................... $ 40,045 $10,935 $ 372 $ 1,331 $ 52,683

C&D TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share data)
(UNAUDITED)

9. DERIVATIVE INSTRUMENTS

The following table includes all interest rate swaps as of July 31, 2002
and January 31, 2002. These interest rate swaps are designated as cash flow
hedges and, therefore, changes in the fair value, net of tax, are recorded in
accumulated other comprehensive loss.

Fixed Variable Fair Fair
Interest Interest Value Value
Notional Origination Maturity Rate Rate At At
Amount Date Date Paid Received 7/31/02 1/31/02
- -------- ----------- -------- -------- -------- ------- -------

$ 6,500 12/20/95 12/20/02 6.01% LIBOR $ (106) $ (240)

20,000 03/11/99 03/11/02 5.58% LIBOR - (77)

20,000 02/05/01 03/01/03 5.24% LIBOR (396) (783)

20,000 04/11/01 04/11/06 5.56% LIBOR (1,431) (735)
------- -------
$(1,933) $(1,835)
======= =======

The Company does not invest in derivative securities for speculative
purposes, but does enter into hedging arrangements in order to reduce its
exposure to fluctuations in interest rates as well as to fluctuations in
exchange rates. The Company applies hedge accounting in accordance with SFAS No.
133, whereby the Company designates each derivative as a hedge of (i) the fair
value of a recognized asset or liability or of an unrecognized firm commitment
("fair value" hedge); or (ii) the variability of anticipated cash flows of a
forecasted transaction or the cash flows to be received or paid related to a
recognized asset or liability ("cash flow" hedge). From time to time, however,
the Company may enter into derivatives that economically hedge certain of its
risks, even though hedge accounting is not allowed by SFAS No. 133 or is not
applied by the Company. In these cases, there generally exists a natural hedging
relationship in which changes in fair value of the derivative, which are
recognized currently in earnings, act as an economic offset to changes in the
fair value of the underlying hedged item(s). The Company did not apply hedge
accounting to currency forward contracts with a combined fair value of
$(1,060)and $(34) as of July 31, 2002 and January 31, 2002. Changes in the fair
value of these currency forward contracts are recorded in earnings.

REPORT OF INDEPENDENT ACCOUNTANTS

To the Board of Directors and Stockholders of C&D Technologies, Inc.:

We have reviewed the accompanying consolidated balance sheet of C&D
Technologies, Inc. and its subsidiaries (the "Company") as of July 31, 2002, and
the related consolidated statements of income and comprehensive income for each
of the three-month and six-month periods ended July 31, 2002 and 2001, and the
consolidated statement of cash flows for the six-month periods ended July 31,
2002 and 2001. These financial statements are the responsibility of the
Company's management.

We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should
be made to the accompanying consolidated interim financial statements for them
to be in conformity with accounting principles generally accepted in the United
States of America.

We previously audited in accordance with auditing standards generally accepted
in the United States of America, the consolidated balance sheet as of January
31, 2002, and the related consolidated statements of income, stockholders'
equity, cash flows, and comprehensive income for the year then ended (not
presented herein), and in our report dated March 5, 2002 we expressed an
unqualified opinion on those consolidated financial statements. In our opinion,
the information set forth in the accompanying consolidated balance sheet
information as of January 31, 2002, is fairly stated in all material respects in
relation to the consolidated balance sheet from which it has been derived.

/s/ PricewaterhouseCoopers LLP
- ------------------------------

PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania
August 21, 2002

Item 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
(Dollars in thousands, except per share data)

Within the following discussion, unless otherwise stated, "quarter" and
"six-month period", refer to the second quarter of fiscal 2003 and the six
months ended July 31, 2002. All comparisons are with the corresponding periods
in the prior year, unless otherwise stated.

Net sales decreased $41,201 or 33% for quarter and $112,522 or 40% for the
six-month period. The decrease in sales for the quarter resulted from lower
customer demand for products of all divisions. Sales of the Powercom Division
decreased $30,005 or 46% during the quarter, mainly due to lower demand from the
telecommunication and UPS markets. The reduced level of capital spending in the
telecommunications sector continues to affect sales. Sales by the Dynasty
Division declined $5,652 or 20% during the quarter, due to lower sales to the
telecommunications market, partially offset by increased sales to the mobility
market. Reduced demand in our sealed product line continues to affect this
division. Motive Power divisional sales decreased $2,850 or 18% during the
quarter, primarily consisting of lower battery and charger sales. Power
Electronics divisional sales decreased $2,694 or 18% during the quarter,
primarily due to a decline in DC to DC converter sales to key telecommunications
customers. The decrease in sales for the six-month period also resulted from
lower customer demand for products of all divisions. Sales of the Powercom
Division decreased $71,442 or 50% during the six-month period, mainly due to
lower demand from the telecommunication and UPS markets. Sales by the Dynasty
Division declined $18,033 or 29% during the six-month period, due to lower sales
to the telecommunications and UPS markets, partially offset by increased sales
to the mobility market. Motive Power divisional sales decreased $8,100 or 23%
during the six-month period, primarily consisting of lower battery and charger
sales. Power Electronics divisional sales decreased $14,947 or 37% during the
quarter, primarily due to a decline in DC to DC converter sales to key
telecommunications customers. We continue to see no near term, meaningful,
improvement in the financial performance of the Power Electronics Division.
However, quotation activity has increased, numerous design wins have been
registered and more than 10% of sales in the six-month period ended July 31,
2002 have come from newly introduced products.

Gross profit for the quarter decreased $17,307 or 46% to $20,202 from
$37,509 in the same quarter of the prior year, resulting in a decrease in gross
margin from 29.9% to 24.0% in the second quarter of fiscal 2003. Gross profit
during the quarter was lower in all divisions, primarily as a result of lower
sales, partially offset by cost savings initiatives. Also contributing to the
lower gross profit in the Motive Power Division during the quarter was
continuing plant operational difficulties. Gross profit for the six-month period
decreased $44,694 or 53% to $38,848 from $83,542 in the prior year, resulting in
a decrease in gross margin from 29.7% to 23.1%. Gross profit was lower in the
six-month period in all divisions primarily as a result of lower sales volumes,
coupled with the aforementioned plant operational difficulties in the Motive
Power Division, and partially offset by cost savings initiatives. The second
quarter's gross margin percentage of 24.0% was an increase over the first
quarter's gross margin of 22.2%. This is primarily due to prices that have held
up reasonably well coupled with aggressive cost reduction/containment
initiatives that have taken effect. Material costs, including lead, remain
relatively stable at this time. Additionally, the aforementioned new product
introductions at our Power Electronics Division, along with new product
introductions at our Powercom and Dynasty divisions, are having a positive
effect on our gross margins.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (continued)
(Dollars in thousands, except per share data)

Selling, general and administrative expenses for the second quarter of
fiscal 2003 decreased $2,672 or 23%. This decrease was primarily due to lower
variable selling costs associated with the decreased sales volumes and the
implementation of SFAS No. 142, which discontinued the amortization of goodwill.
Selling, general and administrative expenses for the six-month period decreased
$7,572 or 30% due to: (i) lower variable selling costs associated with the
decreased sales volumes; (ii) the implementation of SFAS No. 142 and (iii) lower
salary expenses. This decrease was partially offset by the positive effect of
the full recovery of certain litigation and settlement costs from our insurance
carriers during the first quarter of fiscal 2002.

Research and development expenses for the second quarter of fiscal 2003
decreased $195 or 7%, mainly as a result of lower spending by the Power
Electronics and Powercom divisions. As a percentage of sales, research and
development expenses increased from 2% in the second quarter of fiscal 2002 to
3% in the second quarter of fiscal 2003 as a result of lower sales volumes. For
the six-month period, research and development expenses decreased $540 or 10%,
primarily as a result of lower spending by the Power Electronics and Powercom
divisions. As a percentage of sales, research and development expenses increased
from 2% in the first six months of fiscal 2002 to 3% in the first six months of
fiscal 2003 as a result of lower sales volumes.

Operating income for the quarter decreased $14,440 or 63% to $8,626 from
$23,066 in the second quarter of the prior year. This decrease was the result of
lower operating income generated by the Powercom and Dynasty divisions, coupled
with an operating loss generated by the Motive Power Division (compared to an
operating profit in the second quarter of the prior fiscal year), partially
offset by operating income in the Power Electronics Division (compared to an
operating loss in the second quarter of fiscal 2002). For the six-month period,
operating income decreased $36,582 or 69% to $16,101 from $52,683 in the six
months ended July 31, 2001. This decrease was the result of lower operating
income generated by the Powercom and Dynasty divisions coupled with an operating
loss generated by the Motive Power Division (compared to an operating profit in
the first six months of the prior fiscal year), partially offset by higher
operating income generated by the Power Electronics Division. With respect to
the Motive Power Division, the operational difficulties are in the process of
being resolved.

Interest expense, net, decreased $886 in the quarter and $1,752 in the
six-month period, primarily due to lower average debt balances outstanding,
coupled with lower effective interest rates.

Income tax expense for the quarter decreased $4,896 as a result of lower
income before income taxes, partially offset by a slightly higher effective tax
rate. For the six-month period, income tax expense decreased $12,882 due to
lower income before income taxes. The effective tax rate consists of statutory
rates adjusted for the tax impact of our foreign sales corporation, research and
development credits and foreign operations. The effective tax rate for the
second quarter of fiscal 2003 was 37.0% compared to 36.4% in the second quarter
of the prior fiscal year. For the first six months of the current and prior
year, the effective tax rate was 37.0%.

Minority interest decreased $310 in the quarter and $813 in the six-month
period, primarily due to lower income recorded by the Shanghai, China joint
venture. Minority interest reflects the 33% ownership of the joint venture that
is not owned by C&D.

As a result of the above, net income decreased $8,396 or 64% in the second
quarter of fiscal 2003 to $4,704 or 18 cents per share - basic and diluted. For
the six-month period, net income decreased $21,119 or 71% to $8,828 or 34 cents
per share - basic and diluted. Due to our cost containment initiatives and a
business environment that appears to have bottomed, we anticipate our third
quarter earnings to be in the range of 18 to 21 cents per share.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (continued)
(Dollars in thousands, except per share data)

Liquidity and Capital Resources

Net cash provided by operating activities decreased $6,966 or 17% to
$33,917 for the six-month period ended July 31, 2002, compared to $40,883 for
the same period of the prior year. This decrease in net cash provided by
operating activities was primarily due to: (i) a decrease in net income; and
(ii) an increase in accounts receivable during the six months ended July 31,
2002 versus a decrease in the comparable period of the prior year (due to the
slowdown in business that occurred in the prior year). These changes, resulting
in lower net cash provided by operating activities, were partially offset by:
(i) a smaller decrease in accounts payable (due to the slowdown in business that
occurred in the prior year); (ii) an increase in current taxes payable versus a
decrease in the prior year; and (iii) a larger decrease in inventory. Our
inventory has decreased by more than $8,000 for the six-month period ended July
31, 2002, with over 50% of this reduction coming from the Power Electronics
Division.

Net cash used by investing activities decreased $13,797 or 82% to $2,949 in
the six months ended July 31, 2002 compared to $16,746 in the same period of the
prior year, primarily due to lower capital spending.

Net cash used by financing activities increased $20,227 or 178% to $31,585
in the first six months of fiscal 2003 compared to $11,358 in the prior year
This increase was due to an increase in debt payments coupled with less proceeds
from new borrowings. New borrowings for the first six months of fiscal 2002
related to a 22 million British Pound Sterling line of credit, the proceeds of
which were used to pay down debt denominated in U.S. Dollars.

The availability under our current loan agreements is expected to be
sufficient to meet our ongoing cash needs for working capital requirements, debt
service, capital expenditures and possible strategic acquisitions. These
agreements contain restrictive covenants that require us to maintain minimum
ratios such as fixed charges coverage and leverage ratios, as well as minimum
consolidated net worth. We were in compliance with our loan agreement covenants
at July 31, 2002. Capital expenditures during the first six months of fiscal
2003 were incurred to fund, a continuing series of cost reduction programs,
normal maintenance and regulatory compliance. Total fiscal 2003 capital
expenditures are expected to be approximately $7,000 for similar purposes.

On July 24, 2002 our Board of Directors terminated the previous stock
buy-back program announced in February 2000, after having purchased
approximately 852,000 shares of the authorized 1,000,000 shares at a total price
of approximately $23,300. At the same time, our Board of Directors announced a
new buy-back program for 1,000,000 shares. We intend to continue making prudent
purchases of our Company stock while paying down debt, and to selectively pursue
complementary acquisition prospects. Strategic acquisition opportunities will be
expected to enhance C&D's long-term competitive position and growth prospects,
and may require prudent external financing. We cannot assure, however, that we
will be able to make any such acquisitions.

Our bank loan agreement permits quarterly dividends to be paid on our
Common Stock as long as there is no default under that agreement. Subject to
that restriction and the provisions of Delaware law, our Board of Directors
currently intends to continue paying quarterly dividends. We cannot assure you
that we will continue to do so since future dividends will depend on our
earnings, financial condition and other factors. During the second quarter of
fiscal 2002, quarterly dividends were declared twice, once in May for payment in
July and once in July for payment in October. Therefore, there will not be a
quarterly dividend declaration during the third quarter of fiscal 2003. The next
quarterly dividend declaration is expected to occur in the fourth quarter of
fiscal 2003.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (continued)
(Dollars in thousands, except per share data)

NEW ACCOUNTING PRONOUNCEMENTS

On February 1, 2002, we adopted SFAS No. 142, "Goodwill and Other
Intangible Assets." This statement addresses financial accounting and reporting
for acquired goodwill and other intangible assets. As required by SFAS No. 142,
we discontinued amortizing the remaining balance of goodwill. All remaining and
future acquired goodwill will be subject to an impairment test annually (or more
frequently if impairment indicators arise), using a fair value-based approach.
Other intangible assets will continue to be amortized over their estimated
useful lives and assessed for impairment under SFAS No. 144, "Accounting for
Impairment or Disposal of Long-Lived Assets." SFAS No. 144 addresses financial
accounting and reporting for the impairment or disposal of long-lived assets.
SFAS No. 144 supersedes SFAS No. 121 and the accounting and reporting provisions
of Accounting Principles Board Opinion No. 30.

In conjunction with the implementation of SFAS No. 142, we have completed
the transitional goodwill impairment test as of February 1, 2002 and have
determined that no impairment to goodwill existed. Net income and net income per
common share adjusted to exclude goodwill amortization is as follows:

Three months ended Six months ended
July 31, July 31,
2002 2001 2002 2001
---- ---- ---- ----

In August 2001, the FASB issued SFAS No. 143, "Accounting for Asset
Retirement Obligations." This statement addresses financial accounting and
reporting requirements for obligations associated with the retirement of
tangible long-lived assets and the associated retirement costs. SFAS No. 143 is
effective for fiscal years beginning after June 15, 2002. We are currently in
the process of evaluating the impact SFAS No. 143 will have on our financial
position and results of operations, if any.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (continued)
(Dollars in thousands, except per share data)

In July 2002, the FASB issued SFAS No. 146, "Accounting for Costs
Associated with Exit or Disposal Activities," which addresses the recognition,
measurement, and reporting of costs associated with exit or disposal activities,
and supersedes Emerging Issues Task Force ("EITF") Issue No. 94-3, "Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit an
Activity (including Certain Costs Incurred in a Restructuring)." The principal
difference between SFAS No. 146 and EITF No. 94-3 relates to the requirements
for recognition of a liability for a disposal activity, (including those related
to employee termination benefits and obligations under operating leases and
other contracts), be recognized when the liability is incurred, and not
necessarily the date of an entity's commitment to an exit plan, as under EITF
No. 94-3. SFAS No. 146 also establishes that the initial measurement of a
liability recognized under SFAS No. 146 be based on fair value. The provisions
of SFAS No. 146 are effective for exit or disposal activities that are initiated
after December 31, 2002, with early application encouraged.

FORWARD-LOOKING STATEMENTS

Certain of the statements and information contained in this Quarterly
Report on Form 10-Q, are "forward-looking statements" (within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934) and, accordingly, are subject to risks and uncertainties.
For such statements, we claim the protection of the safe-harbor for
forward-looking statements contained in the Private Securities Litigation Act of
1995. The factors that could cause actual results to differ materially from
anticipated results expressed or implied in any forward-looking statement
include those referenced in the forward-looking statement, following the
forward-looking statement, described in the notes to the Consolidated Financial
Statements and other factors discussed in this Quarterly Report on Form 10-Q and
our other filings with the Securities and Exchange Commission. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date of this Quarterly Report on Form 10-Q. We undertake no
obligation to update or revise these statements to reflect events or
circumstances occurring after the date of this Quarterly Report on Form 10-Q.

Forward-looking statements may be identified by their use of words like
"plans," "expects," "will," "anticipates," "intends," "projects," "estimates,"
"believes" or other words of similar meaning. All statements that address
expectations or projections about the future, including statements about our
strategy for growth, product development, market position, expenditures and
financial results, are forward-looking statements. Forward-looking statements
are based on certain assumptions and expectations of future events. We cannot
guarantee that these assumptions and expectations are accurate or will be
realized. Following are some of the important factors that could cause our
actual results to differ materially from those projected in any such
forward-looking statements:

o We operate worldwide and derive a portion of our revenue from sales outside
the United States. Changes in the laws or policies of governmental and
quasi-governmental agencies, as well as social and economic conditions, in
the countries in which we operate could affect our business in these
countries and our results of operations. In addition, economic factors
(including inflation and fluctuations in interest rates and foreign
currency exchange rates) and competitive factors (such as price
competition, business combinations of competitors or a decline in industry
sales from slowing economic growth) both in the United States and other
countries in which we conduct business could affect our results of
operations.

o Our results of operations could be significantly impacted by adverse
conditions in the domestic and global economies or the markets in which we
conduct business, such as telecommunications, UPS, CATV, switchgear and
control and material handling.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (continued)
(Dollars in thousands, except per share data)

FORWARD-LOOKING STATEMENTS (continued)

o Our ability to grow earnings could be affected by increases in the cost of
raw materials, particularly lead. We may not be able to fully offset the
effects of higher raw material costs through price increases or
productivity improvements.

o Our ability to meet customer demand depends, in part, on our ability to
obtain timely and adequate delivery of parts and components from our
suppliers and internal manufacturing capacity. Although we work closely
with our suppliers to avoid shortages, there can be no assurance that we
will not encounter shortages in the future. A reduction or interruption in
component supply or a significant increase in the price of one or more
components could have a material adverse effect on our operations.

o Our growth objectives are largely dependent on our ability to renew our
pipeline of new products and to bring these products to market. This
ability may be adversely affected by difficulties or delays in product
development, such as the inability to: identify viable new products;
successfully complete research and development projects; obtain adequate
intellectual property protection; or gain market acceptance of the new
products. Our growth could also be affected by new competitive products and
technologies.

o As part of our strategy for growth, we have made and may continue to make
acquisitions, and in the future, may make divestitures and form strategic
alliances. There can be no assurance that these will be completed or
beneficial to us.

o Our facilities are subject to a broad array of environmental laws and
regulations. The costs of complying with complex environmental laws and
regulations, as well as internal voluntary programs, are significant and
will continue to be so for the foreseeable future. Our accruals for such
costs and liabilities may not be adequate since the estimates on which the
accruals are based depend on a number of factors including the nature of
the problem, the complexity of the site, the nature of the remedy, the
outcome of discussions with regulatory agencies and other PRPs at
multiparty sites, and the number and financial viability of other PRPs.

o We are exposed to the credit risk of some of our customers including risk
of insolvency and bankruptcy. Although we have programs in place to monitor
and mitigate the associated risk, there can be no assurance that such
programs will be effective in reducing our credit risks.

o Our business, results of operations and financial condition could be
affected by significant pending and future litigation adverse to us, such
as, without limitation, product liability, contract and employment-related
claims and claims arising from any injury or damage to persons or the
environment from hazardous substances used, generated or disposed of in the
conduct of our business (or that of a predecessor to the extent we are not
indemnified for those liabilities).

o Our performance depends on our ability to attract and retain qualified
personnel. We cannot assure that we will be able to continue to attract and
retain qualified personnel.

The foregoing list of important factors is not all-inclusive, or
necessarily in order of importance.

Item 3.

Quantitative and Qualitative Disclosure About Market Risk

We are exposed to various market risks. The primary financial risks include
fluctuations in interest rates and changes in currency exchange rates. We manage
these risks by using derivative instruments. We do not invest in derivative
securities for speculative purposes, but do enter into hedging arrangements in
order to reduce our exposure to fluctuations in interest rates as well as to
fluctuations in exchange rates. Our financial instruments subject to interest
rate risk consist of debt instruments and interest rate swap contracts. The debt
instruments are subject to variable rate interest, and therefore the market
value is not sensitive to interest rate movements. Interest rate swap contracts
are used to manage our exposure to fluctuations in interest rates on our
underlying variable rate debt instruments. Additional disclosure regarding our
various market risks are set forth in our fiscal 2002 Form 10-K filed with the
Securities and Exchange Commission.

PART II. OTHER INFORMATION

Item 4. Submission of Matters to a Vote of Security Holders

Reference is made to Item 4 of the Company's Form 10-Q Quarterly
Report for the period ended April 30, 2002, which is incorporated by
reference.

Item 6. Exhibits and Reports on Form 8-K.

(a) Exhibits

10.1 Seventh Amendment dated as of June 21, 2002, to the credit
agreement, dated as of March 1, 1999 among C&D, as borrower,
certain subsidiaries and affiliates of C&D, as guarantors, the
lenders named therein, and Bank of America, as administrative
agent (filed herewith).

10.2 Employee Separation Agreement dated June 21, 2002 between Mark
Amatrudo and C&D (filed herewith).

10.3 Employment Agreement dated July 24, 2002 between Robert Scott
and C&D (filed herewith).

15. Letter from PricewaterhouseCoopers LLP, independent accountants
for C&D, regarding unaudited interim financial information (filed
herewith).

99.1 Certification of the President and Chief Executive Officer
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed
herewith).

99.2 Certification of the Vice President, Finance pursuant to Section
906 of the Sarbanes-Oxley Act of 2002 (filed herewith).

SIGNATURES
- -------------------

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

C&D TECHNOLOGIES, INC.

September 13, 2002 BY: /s/ Wade H. Roberts, Jr.
---------------------------------
Wade H. Roberts, Jr.
President, Chief Executive
Officer and Director
(Principal Executive Officer)

September 13, 2002 BY: /s/ Stephen E. Markert, Jr.
----------------------------------
Stephen E. Markert, Jr.
Vice President Finance
(Principal Financial and
Accounting Officer)

CERTIFICATION
-------------

I, Wade H. Roberts, Jr., certify that:

1. I have reviewed this quarterly report on Form 10-Q of C&D
Technologies, Inc.;

2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to
the period covered by this quarterly report; and

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and
cash flows of the registrant as of, and for, the periods presented in
this quarterly report.

Date: September 13, 2002 /s/ Wade H. Roberts, Jr.
-------------------- -----------------------------
Wade H. Roberts, Jr.
President and Chief
Executive Officer
(Principal Executive Officer)

CERTIFICATION
-------------

I, Stephen E. Markert, Jr., certify that:

1. I have reviewed this quarterly report on Form 10-Q of C&D
Technologies, Inc.;

Date: September 13, 2002 /s/ Stephen E. Markert, Jr.
-------------------- -----------------------------
Stephen E. Markert, Jr.
Vice President Finance
(Principal Financial and
Accounting Officer)

EXHIBIT INDEX

10.2 Employee Separation Agreement dated June 21, 2002 between Mark
Amatrudo and C&D.

10.3 Employment Agreement dated July 24, 2002 between Robert Scott
and C&D.

15. Letter from PricewaterhouseCoopers LLP, independent accountants
for C&D, regarding unaudited interim financial information.

99.1 Certification of the President and Chief Executive Officer
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

99.2 Certification of the Vice President, Finance pursuant to Section
906 of the Sarbanes-Oxley Act of 2002.