American Pacific Reports Revenue Increase of 34% and Net Income of $2.9 Million for Fiscal 2008 Fir...(in sodium azide revenues in the fiscal 2...),Health

The decrease in Halotron revenues is driven by timing of customer orders. Halotron volumes are expected to be relatively consistent in fiscal 2008 as compared to fiscal 2007.

Specialty Chemicals operating income for the fiscal 2008 first quarter was 38% of Specialty Chemicals revenue compared to 30% for the prior year quarter, reflecting the following:

-- Specialty Chemicals segment depreciation and amortization expense,

which is included in cost of sales, was $1.3 million, or 8% of

Specialty Chemicals revenue for the fiscal 2008 first quarter, compared

to $1.3 million, or 11% of Specialty Chemicals revenue for the fiscal

2007 first quarter. As a result of the improved coverage of

depreciation and amortization expense by the higher revenue level in

the current quarter, and raw material cost reductions for Halotron

products, the Specialty Chemicals segment gross margin percentage

improved by approximately eight points.

-- An increase in operating expenses of $0.4 million primarily due to

environmental related costs and employee compensation.

Fine Chemicals Segment

Our Fine Chemicals segment reflects the operating results of our wholly-owned subsidiary Ampac Fine Chemicals LLC ("AFC").

Quarter Ended December 31, 2007 Compared to Quarter Ended December 31, 2006

-- Revenues were $26.8 million compared to revenues of $17.6 million.

-- Operating income was $4.7 million, or 17% of revenue, compared to

$2.9 million, also 17% of revenue.

-- Segment EBITDA was $8.0 million, or 30% of revenue, compared to Segment

EBITDA of $6.6 million, or 38% of revenue.

The increase in
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