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AMERICAN PACIFIC CORP. ANNOUNCES END OF MAJOR LITIGATION

 AMERICAN PACIFIC CORP. ANNOUNCES END OF MAJOR LITIGATION
 LAS VEGAS, Aug. 25 /PRNewswire/ -- American Pacific Corp. (NASDAQ: APFC) announced today that all defendants, including the company, have agreed to a 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.
 Fred D. Gibson, president and chief executive officer, stated: "We are extremely pleased to have achieved the resolution of these matters. We are convinced that the advantages of a current settlement outweigh the potential merits of a more favorable, although uncertain, outcome through further protracted litigation, including a lengthy trial (or trials), appeals and unpredictable delays.
 "The company's progress despite the burdens and uncertainties of this massive litigation has been remarkable. We can now move ahead even more effectively, free of the unpredictability, costs and diversions created by the litigation."
 Gibson noted that "the company expects to fund its portion of 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."
 Gibson continued: "Under an order of the court, the company is not permitted to presently disclose details of the settlement until documentation is completed, which is anticipated to occur by Sept. 7.
 "We look forward to pursuing our new activities and operating our businesses without the burden of these litigations. Our sodium azide plant is on schedule, and our process verification effort, in which we have successfully crystallized, dried and blended high quality product, has been completed. The plant will be essentially mechanically complete in late 1992. Our Halotron project is in excellent shape with our initial plant complete and successful demonstrations and testing continuing.
 "With resolution of the litigation, and the excellent progress being made toward our strategic objectives, we believe that the company's future could not be more promising."
 American Pacific's principal business activities consist of the production of chlorate and perchlorate chemicals, including chiefly ammonium perchlorate, the oxidizer utilized in composite solid rocket propellants employed in a large number of space and military systems, the design and manufacture of pollution control systems and industrial and commercial real estate development. The company is also actively involved in the development of two new manufacturing facilities: one to manufacture sodium azide for use in automotive airbag safety systems, and the other to produce Halotron as a replacement for ozone depleting halon in fire extinguishment systems worldwide.
 -0- 8/25/92
 /CONTACT: C. Keith Rooker, executive VP, or David N. Keys, VP, of American Pacific, 702-735-2200/
 (APFC) CO: American Pacific Corp. ST: Nevada IN: CHM SU:


LS-JL -- LA005 -- 2900 08/25/92 09:04 EDT
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Date:Aug 25, 1992
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