GenCorp Inc. and Sequa Corporation announced today that GenCorp’s
Aerojet-General Corporation subsidiary (Aerojet) has signed an agreement to
acquire substantially all of the assets related to the propulsion business of
Sequa’s Atlantic Research Corporation subsidiary (ARC), as well as the shares
of ARC UK Limited. Aerojet will also enter into a long-term agreement to
provide propellant to ARC Automotive, Sequa’s automotive airbag inflator
operation. The airbag inflator business is not included in the sale to
Aerojet.

The purchase price of approximately $133 million in cash is expected to be
financed primarily with the issuance of new debt securities. The ARC
propulsion business had sales of approximately $150 million for 2002. The
transaction is expected to close in the summer, subject to receipt of standard
regulatory and certain other government and lender approvals.

ARC is a leading developer and manufacturer of advanced solid rocket
propulsion systems, gas generators and auxiliary rocket motors for both space
and defense applications. With the acquisition, Aerojet will become the second
leading provider in the $1.3 billion domestic solid propulsion marketplace and
a market leader in the tactical missile propulsion segment of that market.

Headquartered and with operations in Gainesville, Virginia, ARC’s
propulsion and defense business also has facilities in Orange County,
Virginia; Camden, Arkansas; Vernon, California; Niagara, New York; Clearfield,
Utah and the United Kingdom. After the acquisition, ARC facilities will
operate as integrated components of Aerojet. The ARC propulsion business has
approximately 900 employees.

“One of our stated strategies has been to invest in and grow our space and
defense business,” said Terry Hall, president and CEO of GenCorp. “This
acquisition, together with our 2002 acquisition of General Dynamics’ Space
Propulsion business, effectively doubles the size of Aerojet, with programs
and products which are largely complementary to our existing capabilities.”

“We have tremendous respect for ARC’s people,” said Mike Martin, president
of Aerojet. “Combining the two businesses will allow us to offer customers a
broader range of technically innovative solutions at competitive prices. We
will be well positioned to capture future growth opportunities in all solid
propulsion applications, including precision-strike systems, hypersonics and
missile defense.”

“Since we acquired Atlantic Research in 1987,” said Norman E. Alexander,
chairman and chief executive officer of Sequa Corporation, “we have continued
ARC’s long tradition of technical advances in rocket propulsion, even as we
expanded into the commercial market for automotive airbag inflators — a field
where we hold a strong and growing position.”

John J. Quicke, president and chief operating officer of Sequa, added,
“For ARC, affiliation with Aerojet will provide important new opportunities to
build on its tradition of innovation and technical excellence, with added
advantage to the nation’s interests. For Sequa, proceeds from the transaction
will contribute to our objective of strengthening our financial condition.”

Wachovia Securities acted as financial advisor to GenCorp for this
transaction.

Aerojet, headquartered in Sacramento, California, is a world-recognized
aerospace and defense leader principally serving the missile and space
propulsion, and defense and armaments markets. GenCorp Inc. is a technology-
based manufacturer with operations in the aerospace and defense,
pharmaceutical fine chemicals and automotive industries. For more information,
please visit http://www.aerojet.com and http://www.gencorp.com .

Sequa’s ARC Propulsion business is a leading developer and producer of
rocket motors, principally for tactical weapons, and a supplier of gas
generators for large strategic missiles and liquid fuel rocket engines for
space and satellite applications. ARC Automotive manufactures inflators for
automotive airbags, including compact inflators for driver- and passenger-side
airbags and inflators for side-impact and curtain models.

Sequa Corporation’s other principal interests are in the fields of
aerospace, metal coating, specialty chemicals, can machinery, industrial
equipment, automotive products, and men’s formalwear. For more information,
please visit www.sequa.com and www.atlanticresearchcorp.com.

This press release contains “forward-looking statements” as that term is
defined in the U.S. Private Securities Litigation Reform Act of 1995. No
forward-looking statement can be guaranteed, and actual results may differ
materially from those projected depending on factors such as business climate,
economic and competitive uncertainties, failure to complete transactions,
adverse legal and regulatory developments, and adverse changes in economic and
political climates around the world. Forward-looking statements in this
document should be evaluated together with the many factors that affect
GenCorp’s business as described in more detail in GenCorp’s Form 10-K for the
year ended November 30, 2002, and GenCorp’s subsequent and other periodic
filings with the Securities and Exchange Commission.