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GenCorp Announces Plans to Sell its Penn Racquet Sports Division

14 December 1998

GenCorp Announces Plans to Sell its Penn Racquet Sports Division

    FAIRLAWN, Ohio, Dec. 14 -- GenCorp announced today
it has initiated the process for divesting its Penn Racquet Sports division, a
step which is aligned with the Company's strategy to focus on its core growth
businesses.
    "While Penn is an established, solid performer, it is not a strategic core
business for GenCorp, and does not fit with the aggressive plan we have to
grow in selected attractive markets by focusing on key businesses we have
targeted as our Growth Platforms," said Chairman and CEO John Yasinsky.
"Because resources in the past few years have been dedicated to our Growth
Platform businesses, we believe that Penn will have a greater opportunity to
capitalize on its brand name equity as a new company, perhaps with a consumer
products or sporting goods parent," Yasinsky said.
    GenCorp's Growth Platform businesses include its Performance Chemicals
division, known formerly as Specialty Polymers, its Decorative & Building
Products unit, and the Fine Chemicals business within its aerospace and
defense segment, Aerojet.  The Company is experiencing excellent growth in
these businesses, internally and through highly synergistic acquisitions that
have expanded product lines and service to customers, enhanced market share
and provided entry into new related markets.
    GenCorp's Penn division, a name widely recognized for its quality and
consumer preference, holds the leading market position for tennis balls
worldwide, and continues to improve its industry position in all of its major
market segments.
    GenCorp is a technology based manufacturer with leading positions in
numerous polymer product markets, as well as the automotive and aerospace and
defense industries.