American Ordnance Announces New Strategic Planning Initiative.

MIDDLETOWN, Iowa--(BUSINESS WIRE)--Sept. 30, 1999--

American Ordnance announced today a new strategic planning initiative to investigate commercial opportunities for the Iowa Army Ammunition Plant. The new initiative will focus on how the assets at the plant, including land, buildings and equipment, can be used to develop new business opportunities for the region.

American Ordnance LLC (AO) has a facility use contract allowing the use of the 19,000 acre government-owned facility, in Southeast Iowa. AO is a joint venture company made up of Mason & Hanger Corporation (MHC) and General Dynamics Ordnance Systems (GDOS). AO has retained Pendulum Management Company LLC (PMC) to coordinate the study and to work with state and local officials as well as the U.S. Army to maximize the value of the Iowa facility.

PMC is an asset management company dedicated to assisting clients to recognize and maximize the value of facility assets. Mr. Pete Richardson, Facilities Use Manager at American Ordnance, stated, "PMC was selected for this project because their management team possesses unique expertise and proven experience in projects similar in scope and magnitude with our endeavor."

Mr. Sid Saunders, Managing Partner of Pendulum, said, "This facility in Iowa is unique because of its size and its location in the heart of the Midwest agriculture, manufacturing and distribution centers." He continued, "The plant is well suited to be redeveloped; existing facilities and equipment can be recycled into commercial applications and the land and infrastructure could be used to support new value added agriculture business initiatives."

Redevelopment at the site has already begun with the location of several businesses including Advanced Environmental Technology, Inc. (AET), East Camden & Highland Rail Company, Iowa Federal Credit Union, Harza (site remediation), Corps. Of Engineers, Environmental Chemical Corporation and ICI Americas Inc.

The ICI Americas Inc. air bag initiator business was recently shut down but their facilities and equipment remain in place. Pendulum officials said studies are underway with ICI and American Ordnance to identify other commercial and military uses for the facility.

New incentives such as the U.S. Army Guaranteed Loan Program and other state and federal grants make the former ICI Americas site and other facilities at the Iowa Army Ammunition plant an attractive location for industry. As an example of incentives available to incoming companies, AET begins operations by receiving over $19 million in startup incentives.

Mr. Pete Richardson stated, "The new planning initiative should uncover even more opportunities at this location. We welcome the Pendulum management team and look forward to a productive partnership with them."

For more information on the site or the initiative, contact Mr. Pete Richardson, American Ordnance, 319/753-7397, email: [e-mail] or Mr. Sid Saunders, Pendulum Management Company LLC, 800/797-7483, email: [e-mail].