ARC and 3M Announce Joint Venture.

GAINESVILLE, Va.--(BUSINESS WIRE)--Sept. 17, 1997--Atlantic Research Corporation (ARC) and Minnesota, Mining and Manufacturing Corporation (3M) announce the formation of a 50/50 joint venture company to produce silicon carbide (SiC) fiber for use in titanium matrix composites (TMC) for the aerospace industry.

The newly formed company, SCM Fiber LLC, is headquartered in an existing facility in Middleway, WV. The manufacturing facility represents a multi-million dollar investment in a state-of-the-art process to produce low-cost SiC fiber. The plant can be expanded with additional reactors to support the demands of the emerging TMC industry.

The new company and production facility are the result of a collaborative research and development effort initiated by the US Air Force at Wright Patterson AFB in the early 1990's, followed by additional support from the IHPTET (Integrated High Performance Turbine Engine Technology) Consortium, and significant investment by both 3M and ARC.

The SiC fiber is used to reinforce titanium components to achieve increased strength, stiffness, and high temperature performance. This composite is suitable for use in aerospace applications such as actuator pistons, turbine engine components, landing gears, and a variety of other applications. Development of these composites has been ongoing for over 15 years. They are being utilized for the first time in the F119 engine for the F-22 Raptor aircraft. Based on TMC's initial success on the F-22, the Joint Strike Fighter (JSF) is expected to make significant use of this material to increase the aircraft's overall performance to weight ratio.

Bob Daidone, SCM Fiber's President, states, "Our goal is to be the world's premier supplier for SiC monofilament fiber. I am confident the strengths that both ARC and 3M bring to this new enterprise will lead us to become the customer's first choice for high quality, low-cost fiber."

ARC recently qualified the first TMC production component for the divergent nozzle actuator piston of the F119 engine. 3M also offers TMC material for a variety of aerospace applications. Both ARC and 3M will purchase this fiber for their own use and the fiber will be available for sale to all users.

ARC, a unit of Sequa Corp., is a leading developer and producer of solid propellant rocket motors, gas generators, liquid propulsion systems, and advanced composite materials. Sequa Corp. (SQA) is a diversified industrial company whose other principal interests include the manufacture and repair of jet engine components as well as the production of specialty chemicals, can machinery, and automotive products.

3M is a diversified manufacturing company with 1996 sales of $14 billion. 3M has operations in over 60 countries and employs more than 70,000 people worldwide. Headquartered in St. Paul, Minnesota, 3M is a manufacturer of a wide variety of products serving industrial, commercial, and consumer markets.

3M's Metal Matrix Composites Laboratory, located in St. Paul, is a self-contained organization of scientists, engineers, and technicians dedicated full time to the development of a continuous fiber-reinforced metal matrix composites (MMC) technology. Their current research facility includes a state-of-the-art fiber line for the production of alpha-alumina fibers used in the manufacture of aluminum matrix composites. The 3M MMC production facility, located in Middleway, West Virginia, is dedicated to the production of both aluminum and titanium matrix composites.

CONTACT: Atlantic Research Corporation

Charles Rowe, 508/658-8940