ATK Receives $97 M in Tank Ammunition Orders

- With Options, Production Value Could Exceed $300 Million
- ATK to Provide U.S. Army with 120mm Tactical and Training Rounds, and 105mm Stryker Training Rounds
- ATK Produces Complete Family of Tactical and Training Rounds for Main Battle Tanks

(Minneapolis, June 16, 2008) -- Alliant Techsystems (NYSE: ATK) announced today that it has received $97 million in follow-on production and new contracts for tactical and training tank ammunition from the U.S. Army. If all production options are exercised, the total value of the contracts could exceed $300 million.

The U.S. Army awarded ATK a four-year contract, with a potential value in excess of $200 million, to continue production of the 120mm training ammunition used by the M1A1/A2 Abrams main battle tank. Under terms of the contract, ATK will also provide logistics support for the ammunition. The first order is valued at approximately $48 million and deliveries will begin in February 2009. ATK also received a follow-on contract, worth approximately $44 million, to continue production of the 120mm M829A3 tank round, the most advanced armor piercing, kinetic energy tank cartridge in the U.S. arsenal. Finally, the company received a $5 million order to produce the 105mm M467A1 training round used by the Stryker Brigade Mobile Gun System vehicle.

Since 1980, ATK has delivered more than four million rounds of 120mm tank training ammunition to the U.S. Army, U.S. Marine Corps, and NATO allies. Propellants for ATK's tank ammunition are produced at the Radford Army Ammunition plant, Radford, Virginia. The rounds are assembled at ATK's manufacturing center of excellence in Rocket Center, West Virginia. Program management is headquartered in ATK's Plymouth, Minnesota facility.

"ATK is pleased to continue its partnership with the U.S. Army to provide high quality tank ammunition and training rounds," said Dave Wise, Vice President of ATK Advanced Weapons. "A trained and ready military is essential to the defense of our nation and ATK employees take great pride in assisting the mission."

Source : Alliant Techsystems (ATK)

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