ATK Awarded Contracts Totaling $126 Million for Facility Modernization, Medium-Caliber Ammunition and Propellant
Total Contract Value Could Reach $427 Million
Aug 25, 2005
Minneapolis, August 25, 2005 – Alliant Techsystems (NYSE: ATK), the nation’s largest manufacturer of ammunition, was recently awarded $126 million of contracts to continue managing and modernizing the Radford Army Ammunition Plant (RAAP), Radford, Virginia, and to produce a variety of medium-caliber ammunition and rocket propellants. If all options are exercised, the total value of the contracts could reach approximately $427 million.
ATK received $23.3 million from the U.S. Army Joint Munitions Command (JMC), Rock Island Arsenal, Ill., for the first year of a five-year contract to manage the Radford AAP. This is the first time that ATK and JMC have entered into a multi-year contract arrangement, solidifying a long-term commitment by ATK to meeting the needs of its JMC customer.
To continue its transformation into a world-class energetics manufacturing facility, JMC awarded ATK an additional $29.6 million to modernize the Radford AAP. Out-year modernization plans could bring the total value of this contract to approximately $55 million.
The JMC also awarded ATK production contracts in excess of $58 million for the following medium-caliber tactical and training ammunition.
* $32.5 million contract for 30mm PGU-15/B Target Practice ammunition used primarily by the U.S. Air Force A-10 Warthog GAU-8/A gun.
* $8.6 million contract for 25mm M793 Target Practice – Traced and M910 Target Practice Discarding Sabot – Traced training rounds fired from ATK’s M242 chain guns used on the M2/M3 Bradley Fighting Vehicle and the U.S. Marine Corps Light Armored Vehicle.
* $8.6 million contract for LW30mm M788 Target Practice ammunition fired from the ATK’s M230 chain gun used on the Apache AH64 helicopter.
* $3.4 million contract for 20mm M55A2 Target Practice ammunition fired from the M6A1 gun system aboard the F-15E.
* $5.9 million contract add-on to produce LW30mm M789 High Explosive Dual Purpose tactical ammunition used primarily in Apache AH64 helicopters.
In addition, General Dynamics awarded ATK $15 million to produce rocket propellant grains for the Mk 90 HYDRA-70/APKWS 2.75-inch rocket, the most widely used helicopter weapon system in the world today. This is the first year of a five-year Indefinite Delivery/Indefinite Quantity contract with a potential contract value of $192M.
ATK is a $3.1 billion advanced weapon and space systems company employing approximately 14,000 people in 23 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, budgetary policies and product sourcing strategies, the company's competitive environment, the terms and timing of awards and contracts, program performance, and program terminations. 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 ATK’s annual report on Form 10-K for the fiscal year ended March 31, 2005.
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