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Alliant Techsystems Awarded $397 Million Contract for U.S. Army Tank Training Ammunition

Feb 17, 1999

Alliant Techsystems (NYSE: ATK) said it has been awarded a contract valued at $397 million for 120mm training ammunition to be used by the U.S. Army's M1A1/A2 Abrams main battle tank. Production of the ammunition accounts for $372 million of the total contract value, with the balance to go for the manufacture and refurbishment of the ammunition's storage containers.

The contract, which was awarded by the U.S. Army Industrial Operations Command, Rock Island, Ill., calls for the production of approximately 773,000 rounds over a five-year period. Deliveries are slated to begin in November 1999 and continue through October 2004. Potential additions to the contract include options that could increase quantities by up to 7 percent.

Nick Vlahakis, vice president, Conventional Munitions Group, which will manage the contract, said the design, development, and high-volume production of tank ammunition is one of Alliant Techsystems' most important core businesses.

"Alliant has a long and proud history of providing U.S. tank crews with high-quality, repeatable 120mm rounds," said Vlahakis. "Our tank ammunition team is proud to carry on this tradition with this new contract."

Propellant for the rounds will be produced at Alliant's manufacturing facility at the Radford Army Ammunition Plant in Radford, Va. Metal parts will be fabricated at Ferrulmatic Operations in Totowa, N.J., and the primer and tracer will be produced at Kilgore Operations in Toone, Tenn.

"All production activities will be guided by strict adherence to rigorous process control standards to ensure that our troops have the best ammunition in the world," said Vlahakis.

Alliant has delivered more than two million training and tactical tank ammunition rounds to the U.S. Army since 1985. In 1998, the company was awarded a $30 million contract for engineering and manufacturing development of the Army's next-generation armor-piercing tactical round. Production options could bring the total value of that contract to $127 million through 2004.

Alliant Techsystems is a $1.1 billion aerospace and defense company with approximately 6,300 employees. Headquartered in Hopkins, Minn., the company's business groups are Conventional Munitions, Space and Strategic Systems, and Defense Systems. Company news and information can be found on the Internet at

SOURCE: Alliant Techsystems

Contact: Media, Rod Bitz, 612-931-5413,, or Investors,
Richard N. Jowett, 612-931-6080,, both of Alliant Techsystems

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