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AMERICAN PACIFIC ANNOUNCES SODIUM AZIDE PLANT FINANCING

      AMERICAN PACIFIC ANNOUNCES SODIUM AZIDE PLANT FINANCING
    LAS VEGAS, Nov. 14 /PRNewswire/ -- American Pacific Corp. (NASDAQ: APFC) announced today that it has received and accepted commitments from a major state employees pension fund and another institutional investor for $40 million in financing for the purpose of completing the design, engineering and start-up of a 2,000 tons- per-year sodium azide manufacturing plant in Iron County, Utah. Sodium azide is the principal chemical used in the inflation of automotive air bag safety systems.
    The company noted that there is no other U.S. producer of sodium azide.  The company entered into a license agreement and related agreements with Dynamit Nobel AG of Germany in July 1990 granting to the company and exclusive license in North America on Dynamit Nobel's most advanced sodium azide production technology and know-how. Dynamit Nobel has produced sodium azide since 1910, and will shortly begin construction of a 1,000 tons-per-year plant in Germany to meet the European demand for sodium azide.
    American Pacific has completed the process engineering for its new sodium azide plant, and has begun the detailed engineering to support construction.  A ground breaking is planned at the plant site in Iron County, (near Cedar City) in early December 1991. Initial production of sodium azide is anticipated in the summer of 1992.  The company is confident that the plant will be completed at the 2,000 tons-per-year capacity in ample time to supply sodium azide for the 1994 automobile model year, beginning in June 1993.
    Fred D. Gibson, Jr., chairman and chief executive officer of the company, expressed "The company's appreciation for the interest and support of such major institutional investors which is indicative of the unusual quality of the sodium azide opportunity, and of the contribution we expect the realization of this opportunity to represent for our shareholders."
    Gibson added: "While these commitments are subject to certain conditions and the execution of definitive agreements, we anticipate a closing late in the fourth quarter of 1991.  We have reached agreement on the most significant terms and conditions, and are most pleased that the company will now be able to take advantage of the sodium azide opportunity."
    American Pacific's principal activities consist of the production of ammonium perchlorate, the oxidizer utilized in composite solid rocket propellants employed by a large number of space and military systems.  Through direct and indirect subsidiaries, the company is engaged in the manufacture of perchlorate chemicals, design and manufacture of electrolytic systems and electrodes, the design and manufacture of pollution control systems, and industrial real estate development, and intends to engage in the manufacture of sodium azide and Halotron, a fire extinguishing agent expected to replace ozone- depleting halons.
    -0-               11/14/91
    /CONTACT:  C. Keith Rooker, executive VP of American Pacific, 702-735-2200/
    (APFC) CO:  American Pacific, Dynamit Nobel AG ST:  Nevada IN:  CHM SU: EH-SE -- LA002 -- 1188 11/14/91 14:58 EST
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Publication:PR Newswire
Date:Nov 14, 1991
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