HALOTRON DISTRIBUTION AGREEMENT AND PURCHASE AGREEMENT COVERING HUNGARY ANNOUNCED BY AMERICAN PACIFIC CORP.
LAS VEGAS, June 9 /PRNewswire/ -- American Pacific Corp. (NASDAQ: APFC) and Atlas-Agrimex International announced today that on June 7, 1993, as planned, the two firms executed a final Distribution Agreement granting to Atlas-Agrimex distribution rights covering the Nation of Hungary for Halotron I, the product American Pacific has introduced to replace ozone-depleting Halon 1211. In addition, Atlas-Agrimex has executed a Purchase and Sale Agreement covering its initial order for Halotron I. This order has a value of less than $100,000. Initial shipments equal to 40 percent of the initial order are to be completed before the end of June 1993, with the balance of the initial order to be shipped before the end of November 1993. Fred D. Gibson Jr., president and chief executive officer of American Pacific, noted that "this relatively small order, which has been discussed generally for some time and has therefore been expected, signals the beginning of commercial sales of Halotron I. Officials of Atlas-Agrimex have advised us that historic Hungarian use of Halon 1211 has approximated 100 metric tons per year, and that a steady state requirement for Halotron I in the Hungarian market can be expected at a level of about 50 percent of historic Halon 1211 usage. Based on this information, the Hungarian market should develop a value of more than $1 million per year. This modest beginning represents a significant step in the continuing development of our Halotron business." Gibson added that "discussions are already under way with other users in both Eastern and Western Europe where historic Halon 1211 usage has exceeded the Hungarian experience. Arrangements similar to those with Atlas-Agrimex are being pursued with appropriate firms in those locations." Gibson concluded that "these arrangements are for the distribution and sale of Halotron I, and are not directly related to the sale and distribution of Halotron II, our product designed to replace Halon 1301, with respect to which we announced important and successful test results on June 7, 1993. This distinction is particularly important because the marketing analyses performed for the company, and the marketing efforts completed to date, indicate that the European market for Halon 1301 replacements, including Halotron II, will be substantially larger than the European market for the Halon 1211 replacement, Halotron I." 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 environmental protection products; and industrial and commercial real estate development. The company is also at the forefront of two developing specialty chemical markets: the manufacture of sodium azide, principally used in automotive airbag systems and the production of Halotron I and II as replacements for ozone-depleting halons in fire extinguishment systems worldwide. -0- 6/9/93 /CONTACT: Scott A. Brooks, director of investor relations of American Pacific, 702-735-2200/ (APFC)
CO: American Pacific Corp.; Atlas-Agrimex International ST: Nevada IN: CHM SU: CON
MF-JL -- LA009 -- 6863 06/09/93 08:30 EDT
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|Date:||Jun 9, 1993|
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