American Pacific Reports Revenue Increase of 34% and Net Income of $2.9 Million for Fiscal 2008 Fir...(hemicalsaccounted for 33% and 34% of our...),Health

In addition, our fiscal 2008 first quarter consolidated gross margin reflects:

-- Improvements in Specialty Chemicals segment gross margin percentage

driven by higher product volume.

-- A decrease in Fine Chemicals segment gross margin percentage relating

to a change in product mix.

-- An increase in Aerospace Equipment segment gross margin percentage.

See further discussion under our Segment Highlights.

Operating Expenses -- For our fiscal 2008 first quarter, operating expenses increased $1.7 million to $10.2 million from $8.5 million in the first quarter of fiscal year 2007, primarily due to:

-- An increase in Specialty Chemicals segment operating expenses of

$0.4 million primarily due to environmental related costs and employee

compensation.

-- An increase in Fine Chemicals segment operating expenses of

$0.5 million due to additional personnel costs, primarily recruiting

and relocation expenses.

-- An increase in corporate operating expenses of $0.7 million due to a

$0.6 million increase in employee compensation and retirement benefit

expenses and a $0.3 million increase in Sarbanes-Oxley compliance

costs, offset somewhat by numerous other minor decreases in corporate

operating expenses.

SEGMENT HIGHLIGHTS

Specialty Chemicals Segment Our Specialty Chemicals segment revenues include the operating results from our perchlorate, sodium azide and Halotron product lines, with perchlorates comprising 95% and 85% of Specialty Chemicals revenues in the fiscal 2008 and 2007 first quarters, respectively.

Quarter E
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