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ARCADIAN DISPUTES OSHA CITATION

 MEMPHIS, Tenn., Jan. 27 /PRNewswire/ -- Arcadian Corporation, General Partner of Arcadian Partners, L.P. (NYSE: UAN), responded today to a citation and proposed civil penalty of $5 million issued to Arcadian by the Occupational Safety and Health Administration (OSHA). OSHA's citation results from its investigation of the July 28, 1992, explosion of a urea synthesis reactor at Arcadian's ammonia and urea complex in Lake Charles, Louisiana.
 The OSHA citation alleges that Arcadian willfully exposed its employees to unsafe working conditions in violation of the Occupational Safety and Health Act. Arcadian emphatically denies that it knew of the danger and willfully exposed its employees to unsafe working conditions.
 Arcadian's comprehensive investigation of the accident, using nationally recognized independent experts, revealed that the July 28 accident resulted from defective welds within the reactor that were performed in 1989 before Arcadian purchased the facility. A leak through one of the welds led to rapid corrosion of the reactor shell, which could not have been anticipated or detected by Arcadian's operating or maintenance personnel prior to the accident. OSHA's allegations that corrosive material from the leak reached the reactor's weep hole and that Arcadian knew of the leak before the accident occurred are completely false. OSHA's investigators simply failed to perform a thorough and objective review of the evidence.
 Arcadian's President and Chief Executive Officer, Doug Campbell, stated, "One of Arcadian's highest priorities is the safety of its employees and the public. Arcadian management has never tolerated, and will not tolerate, unsafe working conditions at our facilities. We deeply regret the accident at Lake Charles and are continuing to evaluate all of Arcadian's facilities with a view to their continued safe operation," Campbell continued, "We have made every effort to cooperate with OSHA and to resolve the matter prior to the issuance of the citation. However, at this point, we have on choice but to vigorously contest the citation, although we will simultaneously look for opportunities to reach a reasonable settlement. We are confident that a full review of the facts will clearly show that Arcadian acted responsibly and that the allegations of willful misconduct are wholly unjustified."
 Arcadian does not expect the proposed penalty to adversely affect the ability of Arcadian Partners, L.P. to make future Minimum Quarterly Distributions to its Preference Unitholders.
 Arcadian is the recognized U.S. leader in the manufacturing, marketing and distribution of upgraded nitrogen chemical products for agricultural and industrial uses.
 -0- 1/27/93
 /CONTACT: Gwaine W. Ton, Director of Investor Relations and Financial Services, Arcadian Partners, L.P., 901-758-5366/
 (UAN)


CO: Arcadian Corporation; Arcadian Partners, L.P.; OSHA ST: Tennessee, Louisiana IN: CHM SU:

DF -- CH012 -- 9939 01/27/93 17:41 EST
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Date:Jan 27, 1993
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