American Pacific Reports Revenue Increase of 34% and Net Income of $2.9 Million for Fiscal 2008 Fir...(nded December 31 2007 Compared to Quarte...),Health

-- Revenues increased 32% to $15.5 million from $11.8 million.

-- Operating income was $5.9 million, or 38% of revenues compared to

$3.5 million, or 30% of revenues.

-- Segment EBITDA was $7.1 million, or 46% of revenues, compared to

$4.8 million, or 41% of revenues.

The first quarter variances in Specialty Chemicals revenues reflect the following factors:

-- A 66% increase in Grade I AP volume in the fiscal 2008 first quarter,

offset partially by a 15% decrease in the related average price per

pound.

-- Sodium azide revenues decreased 93% in the fiscal 2008 first quarter

compared to the prior year quarter.

-- Halotron revenues decreased 11% in the fiscal 2008 first quarter

compared to the prior year quarter.

The increase in Grade I AP volume for the fiscal 2008 first quarter compared to the prior fiscal year first quarter reflects the timing of customer orders. The fiscal 2008 first quarter included a greater percentage of our expected annual volume for fiscal 2008. On an annual basis, we expect fiscal 2008 volume to be comparable to fiscal 2007. There are numerous variations of Grade I AP that we produce for our customers. The decrease in the average price per pound of Grade I AP sold in the fiscal 2008 first quarter reflects a product mix that included more of the standard blend of Grade I AP than specialized blends.

Over the longer term, we expect demand for Grade I AP to be within the ranges of fiscal years 2006 and 2007. In addition, Grade I AP revenues are typically derived from a relatively few large orders. As a result, quarterly revenue amounts can vary significantly depending on the timing of individual orders throughout the year. Average price per pound may continue to fluctuate somewhat in future periods, depending upon product mix and volume.

The decrease
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