AMPAC Fine Chemicals And Proteaf Technologies Enter Into Joint Development Agreement

RANCHO CORDOVA, Calif, July 25, 2013 /PRNewswire/ --AMPAC Fine Chemicals LLC (AFC), a wholly-owned subsidiary of American Pacific Corporation (NASDAQ:APFC), and Proteaf Technologies LLC (Proteaf) announce the signing of an agreement for joint development and implementation of tools and technologies supporting continuous flow chemistry for fine chemicals manufacturing. AFC has demonstrated capabilities in process development, scale-up, and cGMP production of active pharmaceutical ingredients (API's) and registered intermediates for pharmaceutical and biopharmaceutical customers. Proteaf offers scalable, application-specific solutions using continuous processing techniques for manufacturers of pharmaceutical ingredients and other specialty chemicals.

Under this arrangement, Proteaf will supply AFC with development services and specialty equipment for continuous processing.  AFC will leverage Proteaf's resources, complementing its existing facilities and expertise in cGMP manufacturing, to offer a comprehensive value package to customers.  AFC has a long tradition of using continuous processing for manufacturing fine chemicals; energetic chemistry and chiral chromatographic separations have been operated as continuous processes at AFC for more than 15 years at commercial scale.  

Proteaf has brought together three technology platforms that scale easily from the laboratory to plant: silicon carbide (SiC) modular flow reactors, production scale spinning disk reactors, and continuous oscillating baffle reactors. A development platform is available that allows for quick determination of which continuous processing technology is most suited for the customer's chemistry-- after which scale-up is a fast and a predictable process.

Dr. William DuBay, AFC's Vice President of Research and Development, notes "this collaboration will allow AFC to expand and accelerate the development of continuous processes at various scales and enhance our existing continuous processing technology platform, as well as add unique expertise provided by the Proteaf team.  Once the proof of concept is demonstrated for a continuous process at lab scale, we will be able to leverage our experience and the existing infrastructure to rapidly scale-up the process to commercial scale."

Bert Rietveld, President of Proteaf, stated, "With this agreement in place, AFC and Proteaf will jointly offer an advanced, low risk pathway for a customer to realize the benefits of continuous processing, including potentially lower costs, better safety profile and reduced equipment footprint. Customers can develop their chemistry using these technologies with the knowledge that outsourcing at any scale using the same platform will result in a smooth, efficient and cost-effective operation at AFC, one of the leading CMO's in the industry."

ABOUT AMPAC FINE CHEMICALS LLC
AFC is a U.S.-based company with demonstrated capabilities in process development, scale-up, and cGMP-compliant commercial production of active pharmaceutical ingredients (APIs) and registered intermediates for pharmaceutical and biotechnology customers.  Additional information about AFC can be obtained by visiting our web site at www.ampacfinechemicals.com.

ABOUT PROTEAF TECHNOLOGIES
Proteaf offers scalable application specific solutions based on off-the-shelf instrumentation supported by custom engineering and chemistry research and development services.  Additional information about Proteaf can be obtained by visiting their website at www.proteaf.com.

ABOUT AMERICAN PACIFIC CORPORATION
American Pacific Corporation (AMPAC) is a leading custom manufacturer of fine chemicals and specialty chemicals within its focused markets.  We supply active pharmaceutical ingredients and advanced intermediates to the pharmaceutical industry.  For the aerospace and defense industry we provide specialty chemicals used in solid rocket motors for space launch and military missiles.  We produce clean agent chemicals for the fire protection industry, as well as electro-chemical equipment for the water treatment industry.  Our products are designed to meet customer specifications and often must meet certain governmental and regulatory approvals. Additional information about us can be obtained by visiting our web site at www.apfc.com.

FORWARD-LOOKING STATEMENTS
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 Exchange Act of 1934, including without limitation statements regarding anticipated benefits and outcomes resulting from the joint development agreement with Proteaf. The inclusion of forward-looking statements should not be regarded as a representation by American Pacific Corporation and its affiliates (collectively, "American Pacific") that any of American Pacific's expectations will be achieved.  Actual results may differ materially from future results or outcomes expressed or implied by forward-looking statements set forth in this press release due to risks, uncertainties and other important factors inherent in American Pacific's business.  Factors that could cause actual results to differ materially from such forward-looking statements include risks and uncertainties detailed in AMPAC's periodic and other filings with the Securities and Exchange Commission, including in Management's Discussion and Analysis of Financial Condition and Results of Operations and in Risk Factors in AMPAC's annual report on Form 10-K for the fiscal year ended September 30, 2012 and quarterly reports on Form 10-Q for the quarters ended December 31, 2012 and March 31, 2013. All forward-looking statements contained in this release are made as of the date hereof, based on information available to AMPAC as of the date hereof, and AMPAC assumes no obligation to update any forward-looking statement, whether for actual results or otherwise, except as required by law.

SOURCE American Pacific Corporation