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AMERICAN PACIFIC EXERCISES ITS OPTION FOR WORLDWIDE RIGHTS TO HALOTRON

AMERICAN PACIFIC EXERCISES ITS OPTION FOR WORLDWIDE RIGHTS TO HALOTRON
 LAS VEGAS, Feb. 28 /PRNewswire/ -- American Pacific Corp. (NASDAQ: APFC) (the company) has exercised its option to acquire worldwide rights to Halotron, a fire suppression system including both chemicals designed to replace ozone-depleting halons and an enhanced application technology.
 The option exercise entails total payments by the company of $2,500,000. In connection with the option exercise, certain related agreements in principle were reached between the company, the optionor Jan Andersson, a Swedish scientist and inventor and organizations owned by Andersson, including a Swedish firm, AB Bejaro - Product, which is a party to the option agreement, and which is the owner-operator of a pilot Halotron plant in Sweden. Andersson and Bejaro have been active in the fire suppression and safety business for many years.
 The related agreements in principle, which are subject to the approval of counsel for the parties, and are expected to be concluded shortly, are a license and assignment agreement relating to existing inventions and pending patent applications, an employment agreement between Andersson and a newly formed subsidiary of the company, AMPAC Technologies Inc., and a related consulting agreement between AMPAC Technologies and Bejaro.
 Halotron I, which is the most fully tested product covered by the option exercise, has an ozone depletion potential less than the 0.02 specified as the maximum allowable level for halon replacements under current requirements. The company anticipates that future requirements will be more stringent, and that continuing product improvement in this and other respects will therefore be essential to this business.
 The employment and consulting agreements are designed to support the continuation of research and development activities already in progress by Andersson and his associates that are important to the company's efforts to achieve and maintain market penetration and market share for its Halotron products. Such efforts include the enhancement of Halotron and its application, further work on additional Halotron products already in testing and the development of additional Halotron products.
 Earlier this month, the company reported that results of a series of technical evaluations and field tests of Halotron at the University of New Mexico in Albuquerque were positive. These U.S. test results were equivalent to the successful testing of Halotron at the Swedish National Institute of Testing and Standards at the University of Lund in Sweden previously reported by the company.
 Fred D. Gibson Jr., chairman, president and chief executive officer, said: "In our announcement of Feb. 10, 1992, the company stated that it was evaluating the University of New Mexico test results with a view to making an immediate decision respecting the exercise of the option. We have now completed that evaluation. Our decision to exercise the option, to form AMPAC Technologies, and to enter into the related employment and consulting agreements reflects the favorable results in New Mexico as well as our general assessment of Halotron's commercial potential.
 "We are now working to develop our manufacturing capability and marketing strategy for Halotron, and intend to move forward on a priority basis to commercialize this product. The start of Halotron production is currently scheduled to occur between June and September 1992. Accordingly, we are cautiously optimistic that we will be in a position to realize revenues from Halotron in our fiscal year ending Sept. 30, 1992."
 The company's principal business activities consist of the production of chlorate and perchlorate chemicals, including chiefly ammonium perchlorate, the oxidizer utilized in composite solid rocket propellants employed in a large number of space and military systems. Recently, the company announced that it had closed the $40,000,000 financing for its sodium azide manufacturing facility to be constructed in Iron County, Utah. Sodium azide is the principal chemical used to inflate automotive airbag safety systems. In addition to its newly acquired Halotron business segment, the company's other activities include the design and manufacture of electrolytic systems and electrodes, the design and manufacture of pollution control systems and industrial and commercial real estate development.
 -0- 2/28/92
 /CONTACT: C. Keith Rooker, executive VP of American Pacific Corp., 702-735-2200/
 (APFC) CO: American Pacific Corp.; AB Bejaro - Product ST: Nevada IN: CHM SU:


JL-KJ -- LA007 -- 3580 02/28/92 08:32 EST
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Date:Feb 28, 1992
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