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ATK Awarded $10 Million Contract to Produce Tactical Tank Ammunition for U.S. Army

Continuing Production Base Provides Foundation for Future International Sales

Jun 21, 2000

ATK (Alliant Techsystems, NYSE: ATK) said it has been awarded a contract valued at $10 million to produce 120mm tactical ammunition for use by the U.S. Army's M1A1/A2 Abrams main battle tank. The contract, which was awarded by the U.S. Army Armament Research, Development, and Engineering Center (ARDEC), Picatinny Arsenal, N.J., is the seventh production-year award ATK has received for the manufacture of the M830A1 High-Explosive Antitank (HEAT) Multi-Purpose round. The round has been in production since 1992.

Michael McCann, president, Alliant Ammunition Systems Company, New Brighton, Minn., said ATK is pleased to continue to provide the U.S. Army with this important ammunition.

"The design, development, and high-volume production of tank ammunition is one of ATK's most important core capabilities," said McCann. "We have a long history of providing U.S. tank crews with high-quality, repeatable 120mm ammunition, with more than two million training and tactical rounds delivered since 1985. Program manager Steve Neubauer and his M830A1 team are proud to carry on this tradition, and look forward to working in partnership with our ARDEC customers on this new contract."

Jed Holzapfel, ATK vice president, International Business Development, said a number of allied nations have expressed interest in procuring the M830A1 tank ammunition round, which was recently approved for international sales by the U.S. government.

"This most recent sole-source contract continues our ongoing M830A1 production base, which offers our international customers the economies of scale that come with long-running production programs such as this," said Holzapfel.

Production work on the M830A1 contract will be performed at ATK's manufacturing facilities in New Brighton, Minn., Radford, Va., Toone, Tenn., and Rocket Center, W. Va.

Alliant Ammunition Systems Company comprises ATK's U.S. and international medium caliber and tank ammunition business. It is one four operating companies within ATK's Conventional Munitions business segment, which is the largest supplier of military ammunition to the U.S. Department of Defense.

ATK is a $1.1 billion aerospace and defense company with leading market positions in munitions, smart weapons and precision capabilities, propulsion, and composite structures. The company, which is headquartered in Hopkins, Minn., employs approximately 6,500 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: Alliant Techsystems

Contact: Media, Rod Bitz, 612-931-5413, rod_bitz@atk.com, or Investors,
Melanie E.R. Miller, 612-931-6921, melanie_miller@atk.com, both of Alliant Techsystems