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ATK Begins Medium-caliber Ammunition Production at Manufacturing Center of Excellence in West Virginia

ATK Medium-caliber Transition is Latest in a Series of Successful Facility Consolidations *Move Expected to Generate $6-8 Million in Annual Savings Beginning in FY06

Sep 15, 2004

Minneapolis, September 15, 2004 – ATK (NYSE: ATK) has successfully completed the consolidation of its medium-caliber manufacturing operations to the Allegany Ballistics Laboratory in Rocket Center, W. Va. The company is now producing medium-caliber components only four months after ceasing production in Minnesota. This is part of ATK’s strategy to develop a manufacturing center of excellence in West Virginia and was precipitated by the pending closure of the Twin Cities Army Ammunition Plant in Arden Hills, Minn.

As a result of this strategy, ATK expects to achieve $6-8 million in annual savings beginning in fiscal year 2006.

The successful consolidation of ATK’s medium-caliber production is the latest is a series of consolidation moves designed to generate significant margin improvement. This consolidation will allow ATK to manufacture all metal components for 20mm, 25mm, and 30mm medium-caliber ammunition at the Rocket Center facility. The remaining production lines will come on-line over the next few months with all lines expected to be operational by mid-November. ATK anticipates producing up to five million components on a yearly basis once all lines are fully operational. ATK will also manufacture warhead liners for Hellfire, Brimstone, Javelin, and 120mm tank ammunition in the new facility.

ATK is a $2.4 billion advanced weapons and space systems company employing 13,100 people in 21 states. News and information can be found on the Internet at www.atk.com.

Certain information discussed in this press release constitutes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Although ATK believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those factors are: changes in governmental spending and budgetary policies, delays in production line completion, economic conditions, equity market returns, the company's competitive environment, the timing of awards and contracts, the outcome of contingencies, including litigation and environmental remediation, program performance, and sales projections. ATK undertakes no obligation to update any forward-looking statements. For further information on factors that could impact ATK, and statements contained herein, reference should be made to ATK’s filings with the Securities and Exchange Commission, including quarterly reports on Form 10-Q, current reports on Form 8-K and annual reports on Form 10-K.