---

Sequa to Record $31M Gain on Sale of Specialty Chemicals Unit

6 November 1998

Sequa to Record $31 Million Gain on Sale of US-based Specialty Chemicals Unit

    NEW YORK--Nov. 6, 1998--In a Form 8-K filed today with the Securities and Exchange Commission, Sequa Corporation stated that it will record an after-tax gain of approximately $31 million, or $3.02 per share, on the disposition of its US-based specialty chemicals division. The gain will be reported in the company's results for the fourth quarter ending December 31, 1998.
    On October 29, 1998, Sequa announced the sale of Sequa Chemicals, Inc. to GenCorp, Inc. for gross cash proceeds of approximately $108 million. The proceeds have been used to repay all principal amounts outstanding under Sequa's revolving credit agreement.
    The sale of the US-based chemicals unit does not include Warwick International, Sequa's British-based producer of detergent wash boosters and other specialty products. Through Warwick, Sequa Corporation will continue to produce advanced products for the global specialty chemicals market.
    Sequa Corporation, headquartered in New York, is a technology-centered industrial company whose other operations include the repair and manufacture of components for jet engines; the production of propellant for space and missile applications; the manufacture of automotive airbag inflators; the coating of metal coil; the supply of industrial dryers and two-piece can equipment; and the production of automotive cigarette lighters, power outlets, and other products.
    Sequa press releases are on the Internet at Corporate News on the Net (www.businesswire.com/cnn/sqaa.htm).