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ATK Awarded Contracts Valued at $17 Million for Production of Medium-Caliber Ammunition

Sep 6, 2000

ATK (Alliant Techsystems) (NYSE: ATK) said it has been awarded two contracts with a combined value of $17 million from the U.S. Army Operations Support Command, Rock Island, Ill., for production of medium-caliber target practice ammunition. The contracts are:

-- A $9 million award for production of 20mm PGU-27 A/B target practice rounds for use by U.S. Air Force and U.S. Navy tactical aircraft. Deliveries under the contract for the U.S. government's fiscal year 2000 procurement will continue through December 2001. The rounds, which represent a new 20mm product for ATK, will be produced at the company's ammunition manufacturing facilities in New Brighton, Minn. and Independence, Mo.
-- An $8 million award for production of 30mm GAU-8/A target practice rounds for use by the U.S. Air Force's A-10 "Warthog" tactical aircraft. Deliveries under the contract, which represents the large share of the U.S. government's fiscal year 2000 procurement, are scheduled to run through September 2001. The rounds will be produced at ATK's ammunition manufacturing facilities in New Brighton, Minn., Radford, Va., and Toone, Tenn.

Both contracts will be managed by ATK Ammunition Systems Company, New Brighton, Minn.

Mike McCann, president, ATK Ammunition Systems Company, said the contract awards reinforce ATK's leadership position as America's largest supplier of conventional military munitions.

"The addition of the PGU-27 A/B round to our medium-caliber product portfolio is another step forward in our total ammunition supplier strategy, while the GAU-8/A contract continues our long-running production of this round for the A-10, one of the most effective close-air support aircraft in operation today," said McCann. "We are proud of the role that our training ammunition is playing in maintaining our nation's military readiness."

McCann said ATK has delivered more than 120 million rounds of medium-caliber ammunition and over two million rounds of tank ammunition to the U.S. government and allied and friendly nations.

ATK has been an industry partner to the U.S. Army and its soldiers for more than 60 years. Sales to the Army accounted for approximately 32 percent of total revenues in ATK's most recent fiscal year, making the service the company's single largest customer. Major ATK Army programs include small-caliber, medium-caliber, and large-caliber ammunition, the Objective Individual Combat Weapon (OICW), the Tank Extended Range Munition (TERM), anti-tank and anti-personnel barrier systems, and mortar and artillery fuzes.

ATK Ammunition Systems Company is one of four operating companies within ATK's Conventional Munitions Group, which designs and produces small-caliber, medium-caliber, and large-caliber ammunition, munitions propellants, commercial gunpowder, infrared decoy flares, and munitions primers and tracers. The group employs approximately 2,950 people in six states. Sales in fiscal year 2000 were $430 million.

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 6,400 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,
Melanie E. R. Miller, 612-931-6921, melanie_miller@atk.com, both of ATK