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EXHIBIT 99.1
[GENCORP LOGO]
Rosemary B. Younts
Sr. VP, Communications
(916) 351-8650
(916) 804-7820
NEWS RELEASE
Terry Hall
Sr. VP, CFO
(202)828-6800
FOR IMMEDIATE RELEASE
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SAN GABRIEL VALLEY SUPERFUND SITE AGREEMENT REACHED,
CLEARING WAY FOR MAJOR GROUNDWATER CLEAN UP EFFORT
SACRAMENTO, CALIFORNIA, January 12, 2001 - The Aerojet-General
Corporation announced today it has joined six other companies in signing an
historic agreement with the Main San Gabriel Basin Watermaster, San Gabriel
Basin Water Quality Authority, and certain water purveyors to implement a major
groundwater cleanup project in the Baldwin Park Superfund Operable Unit (BPOU)
of San Gabriel Valley in Southern California. The project will safeguard water
supplies for residents and businesses in the San Gabriel Valley, provide major
improvements to the water purveyors' treatment and distribution systems to
protect against rate increases, and importantly, meet the US EPA's Superfund
cleanup requirements.
Aerojet, a subsidiary of GenCorp Inc., has been a leader in the
extensive negotiations that resulted in today's signing of the agreement, which
is in the form of a Memorandum of Understanding (MOU) outlining the principal
terms. Pursuant to the MOU, Aerojet and the other six Potentially Responsible
Parties (PRPs) have provided $4.1 million in immediate funding to cover expenses
of the three public agencies that financed the new treatment plant at La Puente
Valley County Water District, which is about to be permitted by the California
Department of Health Services. The MOU will be followed by a detailed Definitive
Agreement, which is expected to be agreed upon in a matter of weeks. The six
other PRPs include Azusa Land Reclamation Corporation, Hartwell Corporation,
Huffy Corporation, Oil & Solvent Process Company, Reichhold, Inc., and Wynn Oil
Company. Thirteen other PRPs named by the U.S. EPA have not agreed to take part
in the agreement.
Under the Definitive Agreement, the seven PRPs, including Aerojet,
will provide one hundred percent of the resources for the remaining extraction
and treatment facilities required to complete the EPA cleanup program, after
credits for contributions from the US Bureau of Reclamation under existing
legislation and other available government funds.
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The agreement will resolve the issues surrounding groundwater
contamination in the San Gabriel Valley that was first detected in 1979. In that
year, volatile organic compounds were detected in water supplies. In 1984, the
Basin was placed on the U.S. EPA's National Priority List of Superfund sites.
More recently, perchlorate and N-nitrosodimethylamine (NDMA) was detected in
groundwater in the San Gabriel Basin.
"Aerojet is very pleased to have entered into this agreement with the
participating parties on the difficult issues surrounding this matter. We look
forward to finalizing a Definitive Agreement in the weeks ahead. The agreement
will, first and foremost, ensure safe, clean drinking water supplies for
residents of the Valley, and it will permanently stop the spread of the
contamination before it impacts additional groundwater supplies," said Rosemary
Younts, Senior Vice President, Communications, for Aerojet's Sacramento
headquarters.
"Aerojet's participation in this agreement reflects our Company's
commitment to maintaining the highest standards of environmental stewardship,"
she said.
This commitment has moved Aerojet to a leading position in the
development of environmental treatment technologies, never before available, to
resolve challenging environmental problems. One of the key treatment
technologies required in the BPOU is UV/Oxidation to treat NDMA and 1, 4
dioxane. Current UV/Oxidation systems have a high energy requirement for
operation. Aerojet has been working for a number of years with engineering firms
to develop a low energy UV/Oxidation system that will reduce the energy needs of
the conventional technology by 80% or more. On January 9, 2001, the Department
of Health Services verbally approved the use of this low energy UV/Oxidation for
removal of NDMA and 1, 4 dioxane in drinking water treatment systems. At this
time of critical energy shortage in the State of California, the use of this
technology in the BPOU and elsewhere will significantly reduce energy
consumption and cost of groundwater treatment.
Aerojet is a segment of GenCorp, a technology-based manufacturer with
leading positions in aerospace and defense, pharmaceutical fine chemicals and
automotive industries. For more information visit the Company's web site at
http://www.GenCorp.com.
