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ROHR ANNOUNCES ADDITIONAL DEVELOPMENTS IN GOVERNMENT INVESTIGATION

 ROHR ANNOUNCES ADDITIONAL DEVELOPMENTS IN GOVERNMENT INVESTIGATION
 CHULA VISTA, Calif., Feb. 18 /PRNewswire/ -- Rohr (NYSE: RHR), announced new developments in the investigation by agencies of the United States Defense Department and the U.S. Attorney's Office for the Central District of California. Among other things, the investigation at Rohr's Riverside plant apparently concerns the production of parts, the recording of information which is a part of the product process and the company's testing practices utilized for many programs.
 The company has recently learned information regarding various acts of employees, which leads it to believe that the U.S. Attorney may conclude that such acts are sufficient to warrant criminal prosecution of the company. Rohr does not believe any such acts have had an adverse effect on the safety or utilization of its products.
 The government may elect to bring criminal and/or civil proceedings as a result of its investigations, and the potential fines and damages requested by the government might be substantial. If a criminal indictment results, or if the company were to be found guilty of criminal activity, then the company would also face suspension and debarment proceedings which might affect its ability to obtain future government contracts. In addition, the U.S. Government might attempt to terminate existing contracts, including a termination for a default. The company expects to meet with the U.S. Attorney in the near future. It is unable to predict the ultimate outcome of this matter.
 Separately from the government investigation, the company received a Show Cause Notice from the U.S. Department of the Air Force which requests it to explain why the delayed delivery of four C-5 pylons should not be grounds for termination for default of the existing C-5 pylon spares contract. This contract calls for the delivery of 206 spare pylons which are ordered for delivery through 1993 by the Department of the Air Force; under this contract, approximately $35.9 million in sales were delivered in FY 1991 and $2.7 million to date in fiscal 1992. If the contract were to be validly terminated by the Air Force for default, the consequences could include payment to the U.S. Government of the higher cost charged by a substituted vendor plus the cost of transferring such program to the substituted vendor. However, the company believes it has satisfactory reasons for the non- delivery of these four pylons and, in fact, those reasons are the basis for a claim for damages which the company is now preparing for submittal to the Air Force.
 Rohr designs, integrates, manufactures and supports aircraft engine nacelle systems and components for commercial, military and business aircraft. Rohr, headquartered in Chula Vista, has facilities in the United States and Europe.
 -0- 2/18/92
 /CONTACT: John Walsh of Rohr, 619-691-2808/
 (RHR) CO: Rohr Industries Inc. ST: California IN: ARO SU:


AL-CH -- SD007 -- 0156 02/18/92 17:11 EST
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Publication:PR Newswire
Date:Feb 18, 1992
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