GenCorp Agreement with EPA to Remove Land From Sacramento Superfund Site

    SACRAMENTO, Calif., Sept. 17 GenCorp announced
today three significant events related to property holdings at its Aerojet
Sacramento site, a corporate restructuring, and earnings outlook for the third
quarter.
    
    The Company has reached an agreement with the US Environmental Protection
Agency to remove 3,200 acres of property at its Sacramento Aerojet facility
from the Superfund site designation.  All necessary state and federal
signatures for the "Carve Out" agreement were obtained by last Friday, and the
documents are expected to be lodged in US Federal District Court in Sacramento
this week.  The agreement will be subject to a 30-day public comment period
and a public hearing in the State of California, after which the Company
expects the District Court to modify the existing Aerojet Partial Consent
Decree to implement the carve out.

    "This carve out agreement marks a major accomplishment that will enable us
to utilize our valuable property assets by proceeding with our strategy for
economic development in the Capital Valley," said Bob Wolfe, Chairman and CEO.
"The 3,200 acres being removed from the Superfund site is property that has
never been used for operations and is ideally situated along a major highway
corridor in an area that is among the top ten growth and investment regions in
the United States.  The property is well suited and already zoned for multiple
uses, including office, commercial and light industrial," Wolfe added.

    GenCorp also said today that it would be restructuring its corporate
headquarters to reduce corporate expenses by approximately $3 million on an
annual basis.  The restructuring will be implemented through a voluntary early
retirement program and could result in a fourth quarter charge of $6 to
$8 million.

    In addition, the Company now expects third quarter earnings results, which
will be released on September 24, to fall short of analysts' consensus
expectations.  The Company expects third quarter earnings to be in the
$0.10 to $0.12 range.  The reduction in third quarter earnings estimates is
driven by a combination of poor performance from the Aerojet Fine Chemicals
business and a timing issue on closing certain real estate transactions
unrelated to the 3,200 acres being removed from the Aerojet Sacramento
Superfund site, coupled with continuing, but slower than expected recovery of
the GDX Automotive business from inefficiencies in its North American
operations.

    For the full year, the Company has previously issued guidance that
earnings per share, excluding the gain from the sale of Aerojet's Electronic
and Information Systems business to Northrop Grumman, would be at the lower
end of the range of $1.54 to $1.64.  The Company now believes that this
earnings level may not be achieved because the timing of potential land sales
is a major factor at risk.  Nevertheless, the Company remains confident that
it will meet or exceed full year analysts' expectations of $1.26 (First Call),
excluding unusual items.

    Although forecasts by the Company are subject to numerous variables and
uncertainties, the primary risks associated with achieving forecasted results
include: (i) the timing of potential land sales; (ii) automotive production
rates, and; (iii) the automotive segment's ability to reduce inefficiencies
and meet vehicle seal build rates for the Ford Explorer.