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AMERICAN PACIFIC ANNOUNCES FINANCIAL TERMS OF LITIGATION SETTLEMENT

 AMERICAN PACIFIC ANNOUNCES FINANCIAL TERMS
 OF LITIGATION SETTLEMENT
 LAS VEGAS, Sept. 17 /PRNewswire/ -- American Pacific Corp. (NASDAQ: APFC) today announced additional information regarding the previously reported compromise settlement of virtually all claims arising from the May 4, 1988, incident in which its former ammonium perchlorate manufacturing facility in Henderson, Nev., was destroyed. Under an order of the court, the company was prohibited from disclosing financial information regarding the settlement until the completion of documentation, which has now been accomplished. The company and its insurer have funded their contributions. The settlement is expected to close on or about Sept. 23, 1992.
 The total contribution made by the company and its liability insurer to the global settlement approximates $15.6 million, of which the company's liability insurer, with whom the company had previously been involved in a dispute as to the extent of coverage, will pay $7.5 million. As a result, the company expects to recognize a one- time charge to earnings, after tax, of about $5.4 million, (approximately $8.1 million pre-tax) in its fourth quarter ending Sept. 30, 1992.
 Fred D. Gibson, president and chief executive officer, stated: "We are extremely pleased to have achieved the resolution of these matters and believe this settlement represents a reasonable basis for resolution of the litigation. Our cash contribution represents approximately 9.6 percent of the total settlements. This positive outcome is a tribute to the skill with which the company's positions in the litigation were advocated and to the intrinsic merit of those positions.
 "The company was able to fund its contribution to the settlement through the judicious use of resources other than the proceeds of its 1991 and 1992 equity offerings and its 1992 private placement of debt to finance its sodium azide plant. These proceeds therefore remain entirely intact, dedicated to the company's future growth and development.
 "It is clear to us that the company's direct contribution to the settlement is less than the estimated costs of defending the action through further protracted litigation, including a lengthy trial (or trials), appeals and unpredictable delays. More importantly perhaps, we put this uncertainty behind us, eliminate a substantial drain on management's time and place ourselves in a position to concentrate without distraction, on driving the company's major strategic growth programs.
 "Specifically, these include our new manufacturing operations for the production of sodium azide for use in automotive airbag safety systems and the development and manufacture of Halotron as a replacement for ozone-depleting halons in fire extinguishment systems worldwide. These programs continue to advance at a rapid pace."
 American Pacific's principal business activities presently consist of the production of chlorate and perchlorate chemicals, including chiefly ammonium in a large number of space and military systems, the design and manufacture of pollution control systems and industrial and commercial real estate development.
 -0- 9/17/92
 /CONTACT: C. Keith Rooker, executive VP of American Pacific, 702-735-2200/
 (APFC) CO: American Pacific Corp. ST: Nevada IN: CHM SU:


JL-JB -- LA029 -- 0859 09/17/92 17:04 EDT
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Publication:PR Newswire
Date:Sep 17, 1992
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