Atlantic Research Corporation Purchases Liquid Rocket Engine Business.

GAINESVILLE, Va.--(BUSINESS WIRE)--Oct. 9, 1998--Atlantic Research Corporation has agreed to buy the liquid engine business (LEB) of British Aerospace (BAe) subsidiary, Royal Ordnance (RO).

The LEB, which manufactures liquid apogee and station keeping engines for telecommunications, earth observation and scientific satellites, is based at Westcott, near Aylesbury in the United Kingdom (UK). ARC is buying current and future contracts, the intellectual property rights and the plant and machinery. ARC will be forming a UK company, ARC UK LTD, to manage and operate the LEB in the UK as a unit of Sequa Corporation's subsidiary, Atlantic Research Corporation.

ARC's Niagara Falls liquid engine business provides liquid bi-propellant engines for satellite station keeping for Hughes and Loral Space Systems as well as for other companies. Additional product lines include the upgraded Agena Storable Upper Stage for Lockheed Martin's EELV, the PSRE for the Minuteman III re-entry vehicle and Stationary Plasma Thrusters.

RO currently supplies three of the top four satellite manufacturers, including Lockheed Martin Missiles & Space. Their engines and thrusters have recently been on the Astra 1b satellite for Sky TV, and the Mars Global Surveyor.

Commenting on the purchase, ARC's Chairman, President and Chief Executive Officer, James R. Sides, said "The acquisition of the RO liquid propulsion business will provide ARC the added technology, product design and manufacturing know-how to broaden its liquid and space propulsion base. The expanded technical base provided by RO's key technical talents will enhance ARC's overall capabilities and will further refine and improve current ARC development products. The synergistic benefits of the acquisition will allow ARC to better supply the customers' propulsion requirements.

"This transaction is a continuation of ARC's strategic vision of a global market place and is one of several initiatives we have ongoing with BAe/RO."

ARC, a unit of Sequa Corporation, is a leading developer and producer of solid propellant rocket motors, gas generators, liquid propulsion systems, and advanced composite materials. As an example of defense conversion, ARC also produces solid propellant and other components for automotive airbags.

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.