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ATK Awarded Contracts Totaling $11.5 Million to Produce Environmentally Friendly Artillery Propellant

Dec 20, 2000

ATK (NYSE: ATK) (Alliant Techsystems) said it has been awarded contracts with a combined value of $11.5 million from the U.S. Army Armament Research, Development, and Engineering Center (ARDEC), Picatinny Arsenal, N.J., to produce environmentally friendly propellant for the Army's Modular Artillery Charge System (MACS). Production under the contracts will continue through 2001.

The next generation in artillery propelling charge technology, MACS will enable 155mm howitzer systems to fire faster, more accurately, and to longer distances using an automated loading system.

ATK Ammunition and Powder Company, Radford, Va., will produce the propellant at the Radford Army Ammunition Plant, which it operates for the U.S. government.

Patrick S. Nolan, president, ATK Ammunition and Powder Company, said the new propellant, which is designed for shorter or "low zone" firing distances, was co-developed by ATK and the U.S. Army to meet stricter environmental standards while maintaining the high performance requirements of the Modular Artillery Charge System.

"Our partnership with the Army on the development of this state-of-the-art artillery propellant reflects a mutual commitment to environmental stewardship," said Nolan. "We are pleased to be a member of the MACS team, which is working to improve both our nation's defense preparedness and our environment."

Nolan said the MACS propellant contracts help solidify ATK's position as the largest military propellant manufacturer in North America and a critical member of the U.S. munitions industrial base.

ATK Ammunition and Powder Company is a leading supplier of ammunition and propellant to the U.S. Department of Defense and the operator of the Radford Army Ammunition Plant and the Sunflower Army Ammunition Plant in DeSoto, Kan. It is one of four operating companies within ATK's Conventional Munitions segment, which reported sales of $430 million in fiscal year 2000.

ATK has been a 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 the 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), anti-tank and anti-personnel barrier systems, and mortar and artillery fuzes.

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,
Steve Wold, 612-931-6747, steve_wold@atk.com, both of ATK