Atlantic Research Celebrates 50 Years.

GAINESVILLE, Va.--(BUSINESS WIRE)--May 5, 1999--

On April 29, Atlantic Research Corporation (ARC) celebrated its fiftieth anniversary in the Nissan Pavilion near the company's headquarters in Gainesville, Virginia, with Chairman, CEO and President James R. Sides presiding.

In addition to hundreds of ARC employees and their guests, the party was attended by scores of retirees, current and former customers (including chief executives and flag officers), and friends of the company. There were four of six former leaders of the company, including Dr. Arch Scurlock, one of the co-founders, as well as other previous chief executives Lee Rice, William Borten and Antonio Savoca.

Other distinguished guests were Norman E. Alexander, Chairman and CEO, John Quicke, President and COO, and Stuart Krinsly, Senior Executive Vice President and General Counsel, of the Sequa Corporation (NYSE:SQA), ARC's parent. Sequa presented ARC with a trophy commemorating the event.

Congratulations were offered by former Virginia governor George Allen and via videotape from Senator John Warner (R, VA), Chairman of the Senate Armed Services Committee. Numerous letters of congratulation were read, including one from Secretary of Defense William Cohen.

Atlantic Research Corporation was founded on January 24, 1949, by Dr. Arch Scurlock and Dr. Arthur Sloan. In its first year, the company had a contract from the U.S. Navy Bureau of Ordnance to develop a solid propellant system, ARCITE, that formed the basis for the development and production of sounding rockets, auxiliary rockets for ballistic missiles and space vehicles, and propulsion systems for tactical guided missiles. After expanding its propellant base and acquiring liquid and air breathing rocket capabilities, Atlantic Research went on to become today the largest producer of tactical rockets in the world and the only source of both liquid (Minuteman) and solid (Trident) post boost propulsion systems. ARC is a major producer of inflation systems for automotive air bags used in cars all over the world and has developed advanced composite materials for use in advanced aircraft engine and marine applications.

ARC has major manufacturing facilities in the United States and Europe and offices worldwide to service its extensive international business.

ARC was merged with The Susquehanna Corporation in 1967, recapitalized in 1972, and became independent again in 1976 through a leveraged buy-out from Susquehanna by the ARC management. The company was acquired in 1987 by the Sequa Corporation, which has provided critical financial and management support.

Throughout its corporate history, Atlantic Research has remained a major force in the international rocket propulsion industry. Today, ARC faces the new millenium as a production company with a strong technology base, as shown by a sampling of programs that rely on it for propulsion: MLRS, ATACMS, and Tomahawk of Desert Storm fame; Stinger, which helped drive the Soviets out of Afghanistan; Trident and Minuteman Post Boost Propulsion Systems serving two legs of the strategic triad; the PAC-3 surface launched defense system; Standard Missile ship defense system; Sidewinder and AMRAAM air launched missiles; and numerous space vehicles (solid, liquid and electric thrusters). Many new propulsion systems are under development.

Based on strategic planning established two decades ago, ARC has reached a ratio of 50/50 defense/commercial work. The company's defense and commercial sectors are complementary through market diversification and technological synergism. Penetration of the automotive market was based on successful conversion of existing expertise in the production and management of gases, which is what rockets do, combined with the application of award winning high volume, low cost production techniques to meet the stringent cost requirements of the automotive industry.

Similar celebrations will be held throughout the year in ARC's Knoxville, Tennessee; Niagara Falls, New York; and Camden, Arkansas facilities.

Sequa Corporation 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.