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ATK Awarded $14 Million Contract to Supply Lithium Reserve Batteries For Next-Generation Artillery Fuze

Jan 4, 2001

ATK (Alliant Techsystems, NYSE: ATK) said it has been awarded a $14 million contract from KDI Precision Products, Inc., Cincinnati, Ohio, to supply lithium reserve batteries for the U.S. Army's Multi-Option Fuze for Artillery (MOFA). Follow-on orders could increase the total value of MOFA battery production to $38 million by 2006.

Under the initial contract, ATK Power Sources Company will purchase and install semi-automated manufacturing equipment at its facility in Horsham, Pa. and begin production of the batteries in late 2001. Deliveries will continue through the end of 2002.

MOFA is the U.S. Army's next-generation, NATO-standard all-purpose artillery fuze for bursting munitions. It can be inductively set to detonate by target proximity, time, delay after impact, or upon impact, and is operable with all existing and developmental 105mm and 155mm artillery systems.

Mark Giesie, President, ATK Power Sources Company, said ATK designed and developed the MOFA battery over the past eight years as part of the MOFA development program.

"It is gratifying to see this product enter full-scale production and become a key component of the MOFA fuze," said Giesie. "Credit for achieving this important milestone goes to the people who worked together on the program's integrated customer/contractor product team to ensure the battery's successful development, testing, and qualification."

ATK Power Sources Company is a leading producer of lithium reserve batteries and advanced lithium ion polymer rechargeable batteries for specialized military and aerospace applications. Its products are used in artillery projectiles, precision-guided munitions, undersea vehicles, advanced soldier applications, satellites, and launch vehicles. The company is part of ATK's Defense Systems segment, which reported fiscal year 2000 revenues of $221 million.

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 the most recent fiscal year, making the service ATK's single largest customer. Major ATK Army programs include small-caliber, medium-caliber, and large-caliber ammunition, the Objective Individual Combat Weapon (OICW), and tactical barrier and munition systems.

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, 952-931-5413, rod_bitz@atk.com, or Investors,
Steve Wold, 952-931-6747, steve_wold@atk.com, both of ATK