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ATK Awarded $33 Million U.S. Army Contract to Produce Medium Caliber Training Ammunition; Value Could Reach $145 Million Over Five Years

Sep 16, 1999

ATK (Alliant Techsystems), (NYSE: ATK) said it has been awarded a contract valued at $33 million from the U.S. Army Industrial Operations Command, Rock Island, Ill., for production of medium caliber training ammunition to be used by Army helicopters and infantry vehicles. Deliveries under the contract are slated to begin in May 2000.

The award is for the first-year production in a multi-year procurement. If the maximum quantities are procured and all production options are exercised, the total value of the program could reach $145 million over five years.

The ammunition will be produced by ATK's Conventional Munitions business segment at its manufacturing facilities in Radford, Va., New Brighton, Minn., and Toone, Tenn.

Three individual rounds will be produced under the contract:

-- 25mm M793 target practice tracer rounds fired from the Army's Bradley Fighting Vehicle.

-- 25mm M910 target practice discarding sabot tracer rounds also fired from the Bradley Fighting Vehicle.

-- 30mm M788 target practice ammunition fired from the Army's Apache and Black Hawk helicopters. ATK is the sole-source supplier of both training and tactical lightweight 30mm ammunition.

Nick Vlahakis, group vice president, Conventional Munitions, said the multi-year production contract reinforces ATK's position as the nation's largest supplier of military tactical and training ammunition.

"ATK's leadership in this market segment reflects a long-standing commitment to supplying our armed forces with high-quality ammunition at an affordable cost," said Vlahakis. "Our number-one priority is to provide ammunition that performs consistently from round to round to support mission safety and success."

Vlahakis said the recent selection of ATK to supply the Army's requirements for small caliber ammunition for the next 10 years and manage the Lake City Army Ammunition Plant makes the company a total ammunition supplier to the Department of Defense. The company's products range from 5.56 mm and 7.62mm rounds for small arms to 120mm ammunition fired from the Army's M1A1 Abrams main battle tank.

ATK has delivered more than 120 million rounds of medium caliber ammunition and over two million rounds of tank ammunition to the U.S. and its allies.

Conventional Munitions designs and produces ammunition, munitions propellants, tactical missile propulsion systems, warheads, and metal parts, composite structures for aircraft and weapons systems, infrared countermeasure flares, and commercial gunpowder. Operations are conducted by three companies: Alliant Ammunition and Powder Company, Alliant Missile Products Company, and Alliant Kilgore Flares Company.

Conventional Munitions reported fiscal year 1999 sales of $481 million. It employs approximately 2,800 people at facilities in Illinois, Kansas, Minnesota, New Jersey, Tennessee, Virginia, and West Virginia.

ATK is a $1.1 billion aerospace and defense company with leading market positions in munitions, solid propulsion, composite structures, and precision electronic fuzes. The company, which is headquartered in Hopkins, Minn., employs approximately 5,800 people and has three business segments: Conventional Munitions, Aerospace, and Defense Systems. ATK news and information can be found on the Internet at http://www.atk.com/

SOURCE: ATK

Contact: Media, Rod Bitz, 612-931-5413, rod_bitz@atk.com or Investors,
Richard N. Jowett, 612-931-6080, richard_jowett@atk.com, both of ATK



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