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ATK Begins Medium Caliber Ammunition Integration Operations at Radford Army Ammunition Plant

Sep 20, 1999

ATK (Alliant Techsystems) (NYSE: ATK) said it has begun medium caliber ammunition load, assemble, and pack (LAP) operations at the Radford Army Ammunition Plant (RAAP) in Radford, Va. The operations previously were performed by ATK at the Joliet Army Ammunition Plant in Wilmington, Ill.

The start up is one of the final steps in the relocation of the company's medium caliber ammunition LAP operations that began in the fall of 1997. When the move is completed later this fall, it will consolidate ATK's medium caliber LAP operations and propellant production into a single location. Alliant Ammunition and Powder Company manufactures military and commercial propellant at RAAP and also operates the government-owned facility as a civilian contractor.

Speaking today at a dedication ceremony for the new LAP facility at Radford, Patrick S. Nolan, president, Alliant Ammunition and Powder Company, said the move of the LAP operations to the Radford plant is a major transforming event for the facility.

"With this consolidation, Radford becomes a total munitions plant, providing not only propellant and energetics, but also final product integration," said Nolan. "The investment that ATK and the U.S. Army have made in this project will make the plant a permanent and prominent part of the U.S. defense industrial base and an important contributor to the economic future of the New River Valley."

Nolan said the consolidation could add up to 75 new manufacturing and support jobs at the Radford plant.

In remarks delivered at today's ceremony, U.S. Rep. Rick Boucher (D-Virginia, 9th District) said, "The relocation of the medium caliber load, assemble, and pack operations to Radford confirms the status of the arsenal as a major contributor to the economic future of the New River Valley. The move also demonstrates the confidence that Alliant Techsystems has in the workforce at the arsenal, and I am pleased that this latest step in a long line of successes at RAAP will create additional jobs for Southwest Virginians."

The medium caliber LAP operations at Radford will be conducted in a 70,000-square foot facility that comprises several refurbished buildings as well as a newly constructed building. The new manufacturing equipment within the facility incorporates a modular design that supports the production of multiple medium caliber ammunition rounds, ranging from 20mm to 40mm in size. The production line utilizes computer-controlled manufacturing and inspection equipment designed to reduce product variability, providing customers with affordable, high-quality ammunition that performs consistently from round to round. A range for acceptance testing of medium caliber rounds also was constructed at the Radford plant.

ATK and the U.S. Army funded the renovation, construction, and equipment costs for the new facility. The Army's portion of the costs was provided under the Armament Retooling and Manufacturing Support (ARMS) program, an initiative that encourages contractors at government-owned, contractor- operated ammunition plants to use and market idle manufacturing capacity for other government and commercial work.

Ammunition LAP operations involve the integration of multiple components, including projectile, case, primer, and propellant, into a finished bullet and packaging the product for shipment.

Nick Vlahakis, ATK group vice president, Conventional Munitions, said the consolidation of medium caliber LAP operations at the Radford plant will strengthen the company's competitive position in the munitions industry.

"By combining our propellant production and LAP operations, we will reduce costs and improve operating efficiencies, enhancing our position as the market leader in low-cost, high-quality medium-caliber ammunition for infantry fighting vehicles and tactical aircraft," said Vlahakis. "This is a sound business decision not only for ATK, but also for our customer and the nation's taxpayers."

ATK's operations at the Joliet Army Ammunition Plant began in 1981. The company occupied approximately 2,500 acres of the 23,500-acre site and employed approximately 100 people in its LAP operations there when the move was announced in 1997. The land formerly occupied by ATK will be used for a new industrial park, a landfill, and a tall grass prairie park.

"Our decision to leave the Joliet plant was driven entirely by a smaller defense industry marketplace, which demands that we look for more efficient ways of doing business," said Vlahakis. "As we complete this transition, we want to express our sincere thanks for the contributions made by our highly skilled Joliet workforce, which played an important role in making ATK the nation's leading producer of military ammunition."

Alliant Ammunition and Powder Company employs approximately 1,250 people at the Radford Army Ammunition Plant, which has been designated by the U.S. Army as a Group Technology Center for propellant manufacturing. In addition to its medium caliber LAP operations, ATK relocated its commercial gunpowder manufacturing operations from New Jersey to the Radford plant. As the plant operator, ATK also has brought a number of commercial tenants to Radford, including a fire works manufacturer, a wellness center, and a hardware supply company.

Alliant Ammunition and Powder Company is part of ATK's Conventional Munitions business segment, which 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. 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



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