LAS VEGAS, June 26 /PRNewswire-FirstCall/ -- American Pacific Corporation ("AMPAC" or the "Company") today announced that it has entered into joint venture, license and supply agreements (collectively, the "Gowan Agreements") with Gowan Company, LLC. The Gowan Agreements provide for:
* The licensing to Gowan of AMPAC's rights to intellectual property
regarding azide-based pest management products, including the trademark
SEP(TM) 100,
* Joint investment and efforts to further develop and obtain regulatory
registration of azide-based pest management products,
* AMPAC's supply of the products to Gowan, and
* Gowan's exclusive marketing and sales of the products worldwide.
For the last several years, AMPAC has been involved in the experimental development of azide-based pest management products as a replacement product for methyl bromide. SEP 100 has undergone extensive field trials on a variety of applications, including turf, cut flowers, and food crops and is currently under review by the U.S. Environmental Protection Agency. Test results to date have been positive, indicating that SEP 100 is as effective, or in certain circumstances, more effective than methyl bromide in certain pre-plant applications. However, there are no assurances regarding EPA or other regulatory approval or market acceptance of the products.
"We believe that azide-based pest management products present a strategic long-term opportunity to diversify the commercial uses of our azide products and we are committed to investing in their continued development over the next several years. We are enthusiastic about our alliance with Gowan Company, and believe that Gowan's expertise in the crop protection industry and global presence will enhance our efforts to finalize development, obtain regulatory approval, and bring the product to market," said John R. Gibson, AMPAC's Chief Executive Officer.
About American Pacific Corporation
American Pacific is a chemical and aerospace company with the following products: (i) fine chemicals in the form of active pharmaceutical ingredients and registered intermediates, (ii) perchlorate chemicals used in space propulsion and other applications, (iii) liquid in-space propellant thrusters used for attitude control on satellites, (iv) Halotron, a clean fire extinguishing agent, (v) sodium azide and other energetic products used in various applications and (vi) water treatment equipment. Fine chemicals are produced at Ampac Fine Chemicals (AFC) in Rancho Cordova, California. Perchlorates and other energetic chemicals as well as Halotron and water treatment equipment (PSI) are manufactured at the Wecco division in Cedar City, Utah. The in-space propulsion business, Ampac-ISP, is located at Niagara Falls, New York, and Westcott in the U.K. American Pacific also participates in a joint venture, packaged explosive manufacturer Energetic Systems, Inc. (ESI), with facilities in Hallowell, Kansas and Oklahoma City, Oklahoma. Additional information about American Pacific can be obtained by visiting the Company's web site at http://www.apfc.com/.
About Gowan Company LLC
Gowan Company is a marketer of crop protection products and is dedicated to providing quality products to growers in the specialty crop and horticultural markets. The Gowan Group of companies champions technology for agriculture and horticulture through innovative product development, public advocacy and quality production. Visit http://www.gowanco.com/ for more information about Gowan Company and their products.
Risk Factors/Forward Looking Statements
The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934, including without limitation all statements regarding the level of backlog and orders, the prospects for improvements in operating profits of our business segments, requirements for our cash, and the stability of baseline demand for our products. Words such as "believes," "anticipates," "plans," "expects," "intend," "will," "goal" and similar expressions are intended to identify forward-looking statements. The inclusion of forward-looking statements should not be regarded as a representation by the Company that any of its plans will be achieved. Actual results may differ materially from those set forth in the release due to risks and uncertainties inherent in the Company's business. Factors that might cause such differences include, but are not limited to, the Company's ability to successfully complete development of and obtain regulatory approval for azide-based pest management products, changes in regulatory requirements, commercial acceptance of azide-based pest management products, the Company's ability to profitably compete for the manufacture and sale of azide-based pest management products and the other risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission. Readers of this release are referred to the Company's Annual Report on Form 10-K for the year ended September 30, 2005 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2006 for further discussion of these and other factors that could affect future results. The forward-looking statements contained in this news release are made as of the date hereof and American Pacific assumes no obligation to update for actual results or to update the reasons why actual results could differ materially from those projected in the forward-looking statements.
