<PAGE>
SEQUA'S ATLANTIC RESEARCH UNIT WILL RECOVER A SUBSTANTIAL PORTION
OF RECEIVABLES IN SETTLEMENT WITH BREED TECHNOLOGIES, A FORMERLY
BANKRUPT CUSTOMER
SEQUA'S FOURTH QUARTER/FULL YEAR NET TO BE LOWERED BY $1.9
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MILLION FOR SETTLEMENT
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New York, January 8 -Following the resolution of issues between
Sequa's Atlantic Research unit (ARC) and its airbag inflator
customer, Breed Technologies Inc., the company will recover a
substantial portion of the $12.1 million net accounts receivable
due from Breed before that company filed for bankruptcy in
September 1999.
Under terms of the settlement, ARC will continue to supply
Breed with airbag inflators through a modified long-term supply
agreement. Also as part of the settlement, ARC expects to
complete its planned purchase of the assets of BAG S.p.A., an
Italian airbag joint venture with Breed, by January 31, 2001.
The settlement agreement was submitted late Friday to the US
Bankruptcy Court in Delaware.
Once the Court approves the settlement with Breed, Sequa
will establish a provision that is expected to reduce net income
for the fourth quarter and the full year 2000 by approximately
$1.9 million or 19 cents per share.
Commenting on the agreement between ARC and Breed, John J.
Quicke, president and chief operating officer of Sequa, said,
"From an operating standpoint, resolution of these issues allows
us to resume a healthy working relationship with a revitalized
customer. From a financial standpoint, the agreement removes an
element of uncertainty from the outlook for Sequa. On both
counts, we are glad to move on."
Atlantic Research Corporation, with sales approaching $200
million through the nine months of 2000, is a leading
manufacturer of solid propellant rocket motors and gas generators
for military and space applications. Beginning in the late
1980s, ARC applied propulsion technology originally developed for
the military to the burgeoning market for automotive airbags. ARC
is one of eight discrete business units of Sequa Corporation,
whose sales through the nine months of 2000 totaled $1.3 billion.
Sequa's other operations include the manufacture and repair of
components for jet engines; the production of detergent
chemicals; the coating of coiled metal for use in building
products; the supply of auxiliary press equipment; the production
of machinery for the two-piece can industry; the manufacture of
men's formalwear; and the production of automotive cigarette
lighters and power outlets.
<PAGE>
1/08/01
Note: This release includes forward looking statements,
including management's intentions, plans, beliefs, expectations
or predictions of the future based on current facts and analysis.
Actual results may differ materially from those indicated in such
statements. For additional information on factors that may
affect the business and financial results of the company, see the
comments included in Sequa's filings with the Securities and
Exchange Commission.
