CONTACT: David N. Keys - 702/735-2200 ext.166


                       AMERICAN PACIFIC CORPORATION ADOPTS
                             STOCKHOLDER RIGHTS PLAN

Las Vegas,  Nevada,  August 3,  1999/PRNewswire/ -- American Pacific Corporation
(Nasdaq National  Market:  APFC) announced today that its Board of Directors has
adopted a  Stockholder  Rights Plan and has declared a dividend  granting to its
Stockholders the right to purchase one  one-hundredth of a share of a new series
of Preferred Stock for each share of Common Stock owned. The Plan is designed to
encourage any potential buyer to negotiate appropriately with the Board prior to
attempting  a  takeover,  and to allow the Board to  secure  the best  available
transaction for all of the Company's Stockholders.

John R. Gibson,  President and CEO of the Company stated, "The Company's present
position  makes the adoption of the Plan a prudent step to take at this time. As
we previously announced, the Company has engaged Wasserstein Perella & Co., Inc.
to serve as the  Company's  financial  advisor in  connection  with the  Board's
review of  strategic  alternatives  to maximize  stockholder  value.  We have an
obligation  to  our  Stockholders  not  only  to  be  open  to  and  to  respond
appropriately to outside  inquiries,  but also to protect our Stockholders  from
potentially  abusive  takeover  tactics  designed  to acquire  our Company at an
unreasonably  low  price.  Our  Rights  Plan has  been  developed  to serve  the
interests  of our  Stockholders  and ensure  they  receive  fair value for their
investment  in our  Company.  Our  Plan  has a  feature  that  exempts  from the
provisions of the Plan certain offers that meet specified objective criteria The
Plan  also  provides  for a  review  of  the  terms  thereof  by  the  Company's
non-employee directors every three years."

The Rights will be issued on August 16, 1999 to  Stockholders  of record on that
date and the  distribution  will not be taxable to the  Company's  Stockholders.
Initially,  the Rights are not  detachable  from the Common Stock of the Company
and are not  exercisable.  They would become  detached from the Common Stock and
immediately  exercisable  at the time any person or group becomes the beneficial
owner of 20% or more of the  Common  Stock or 10 days  after any person or group
publicly  announces  a tender  or  exchange  offer  that  would  result in a 20%
beneficial  ownership level. The Company may redeem the Rights for $.001 each at
any time before a buyer  acquires a 20% position in the  Company.  Prior to such
time, the terms of the Plan may be amended by the Board.  The Rights will expire
on August 2, 2009.  Details  of the  Stockholder  Rights  Plan will be mailed to
Stockholders.

The primary  business of American  Pacific  Corporation  is the  manufacture  of
specialty  chemicals.  The  Company  is the sole  producer  in North  America of
ammonium perchlorate,  or AP, which is the principal chemical component of solid
propellants  used in rocket  and  booster  motors by NASA,  the  military  and a
growing number of commercial  launch  vehicles.  American  Pacific  manufactures
Halotron(TM), which replaces Halon as a fire suppressant in applications ranging
from  fire  extinguishers  to  airport   firefighting   vehicles.   The  Company
manufactures these chemicals in





facilities  in Utah,  where it also  makes  sodium  azide,  a  primary  chemical
component  of certain  automotive  airbag  systems.  Its other lines of business
include  the  production  of  environmental   protection   equipment,   and  the
development of real estate near Las Vegas, Nevada.



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