ATK Receives $7.6 Million Initial Order From U.S. Army for Tank Ammunition
With Options, Production Value Could Exceed $30 Million
The M1028 Canister Cartridge Completes ATK's Proven Tank Ammunition Portfolio for the Abrams Main Battle Tank
MINNEAPOLIS, Aug. 4 /PRNewswire-FirstCall/ -- Alliant Techsystems (NYSE: ATK) announced today that it has received a $7.6 million initial contract from the U.S. Army for the M1028 120mm Canister Cartridge. The contract also includes four additional option years that could raise the total value of the contract to more than $30 million if all production options are exercised.
The M1028 is the latest addition to the ammunition suite for the M1A1/A2 Abrams main battle tank and is used for both tactical and training purposes. The M1028 round is also compatible with U.S. Marine Corps Abrams tanks and is available internationally to allied nations.
Fired from the Abrams main gun, the M1028 contains approximately 1,100 tungsten balls that create a "shotgun-like pattern" that is effective in close combat operations. Type classification of the M1028 in 2005 and urgent fielding has provided troops the ability to use this round to respond effectively to current battlefield threats including the disruption of ambush sites in urban areas, stopping ground attacks, and supporting friendly infantry assaults through cover-by-fire.
The addition of the M1028 120mm Canister Cartridge completes ATK's Tank Ammunition portfolio, which now includes all types of tactical and training ammunition for the Abrams main battle tank. Since 1980, ATK has delivered more than four million rounds of 120mm tank training and tactical ammunition to the U.S. Army, U.S. Marine Corps, and NATO allies.
"ATK is proud to continue our partnership with the U.S. Army by providing this much needed capability to soldiers who are facing multiple threats on today's battlefields," said Dave Wise, Vice President and General Manager for ATK Advanced Weapons. "The M1028 Canister Cartridge contract is a result of our long-term commitment to tank ammunition that has allowed us to focus on quality and production efficiencies that translate into safe, effective, affordable ammunition for the warfighter."
ATK is a premier aerospace and defense company with more than 17,000 employees in 21 states and $4.5 billion in revenue. News and information can be found on the Internet at http://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: assumptions related to option years in the tank ammunition contract, changes in governmental spending, budgetary policies and product sourcing strategies; the company's competitive environment; the terms and timing of awards and contracts; and economic conditions. ATK undertakes no obligation to update any forward-looking statements. For further information on factors that could impact ATK, and statements contained herein, please refer to ATK's most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with the U.S. Securities and Exchange Commission.
SOURCE: ATK
CONTACT: Media, Tom Van Leunen, +1-703-412-3218, tom.vanleunen@atk.com,
or Investor, Steve Wold, +1-952-351-3056, steve.wold@atk.com, both of ATK
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