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Atlantic Research Corporation Acquires BAICO

29 January 1998

Atlantic Research Corporation Acquires BAICO

    GAINESVILLE, Va., Jan. 29 -- Atlantic Research Corporation
(ARC) has acquired AlliedSignal's interest in BAICO, formerly a
50/50 joint venture for the development, production and marketing of
automotive air bag inflators.  ARC becomes the sole owner of BAICO technology
and manufacturing operations as a result of the acquisition.
    BAICO will be combined with the ARC Automotive Products Group, and the
name BAICO will be retained as the trade name for the products.
    "The combined technology of ARC and BAICO is a natural match of true
innovators in the air bag inflator industry," James R. Sides, chairman and
CEO, ARC said.  "BAICO inflators were the first alternative to sodium-azide
based pyrotechnic inflators and ARC has nearly five decades of leadership in
propulsion systems.  We look forward to surpassing customer satisfaction well
into the future with these combined technological resources."
    Having pioneered hybrid technology in the 1970s, ARC and AlliedSignal
formed BAICO in 1989 to offer hybrid inflators as the first alternative to
sodium azide-based pyrotechnic inflators.  The first BAICO inflators were for
the passenger side, but the product family now includes inflators for driver-
side and side impact, including the new side-impact "curtain" applications.
    BAICO has an aggressive program of continuous development of new inflator
designs that meet the evolving requirements of the industry, according to Roy
G. Brown, senior vice president, ARC Automotive Products Group.  These
innovations include variable onset and duel level inflators offering
automakers assistance with "smart system" technology and an all-pyro inflator
set to lead the industry in packaging and cost effectiveness.
    ARC supplies BAICO inflators to major auto manufacturers in North America,
Europe, Japan and Korea from its facility in Knoxville, Tenn.  ARC also is a
partner in BAG S.p.A, a joint venture in Collefero, Italy.  Via a licensing
agreement with ARC, BAG S.p.A manufactures a variety of inflators designed and
developed by BAICO.  Additionally, ARC supplies energetics for all of these
inflators from its Camden, Ark. facility.
    ARC has extensive experience in development of propellant chemistry and
cost-effective designs for the generation and management of gases.  ARC's
parent company is Sequa.
    Sequa Corporation is a diversified technology company with 1996 sales of
$1.4 billion.  Sequa's other operation serving the automotive industry is
Casco Products Corporation, a leading supplier of automotive cigarette
lighters, power outlets and electronic sensors.  In addition to automotive
industry businesses, Sequa operations include the repair and manufacture of
components for jet aircraft engines; the production of rocket motors and solid
propellant for missiles and space applications; the manufacture of specialty
chemicals for the detergent, paper, textile and graphic arts markets; and the
production of machinery to form and decorate two-piece cans.

SOURCE  Atlantic Research Corporation