ATK and FNMI Team to Win $53.4 Million Mk19 Grenade Machine Gun Contract

MINNEAPOLIS, Sept. 30 /PRNewswire-FirstCall/ -- Alliant Techsystems (NYSE: ATK) and FN Manufacturing, LLC (FNMI), have received a $53.4 million contract from the U.S. Army Joint Munitions and Lethality Life Cycle Management Command, Picatinny Arsenal, New Jersey, to produce Mk19 Mod-3 Grenade Machine Guns (GMG). This will be the first crew-served weapon system manufactured by ATK, marking a significant milestone in the company's strategy to broaden its armament systems business. The contract also expands ATK's existing portfolio of medium-caliber gun systems beyond its battle-proven chain guns.

ATK and FNMI teamed to provide the U.S. Army a low-risk and best value systems solution for the Mk19 GMG program. ATK has assembled independent supply chains and manufacturing entities with dedicated capacity to meet program schedule and delivery requirements.

ATK will lead a proven and reliable industry team that combines world-class systems integration experience with small- and medium-caliber weapon manufacturing expertise of key subcontractors and suppliers. In addition to its role as systems integrator, ATK will perform barrel manufacture, gun assembly and test operations. FNMI will provide gun sub-assemblies. Work on the Mk19 will be performed by ATK at its facility in Mesa, Ariz.

ATK currently manufactures 25mm through 40mm variants of its Bushmaster cannons and more than eight million rounds of medium-caliber ammunition per year. The cannons are sold in more than 30 countries and are the primary gun on Bradley fighting vehicles and the Apache helicopter for the U.S. Army.

ATK is a premier aerospace and defense company with more than 17,000 employees in 21 states and approximately $4.6 billion in revenue. News and information can be found on the Internet at http://www.atk.com.

FNMI is a precision manufacturer specializing in the production of small arms weapons for the U.S. military and law enforcement markets. FNMI is committed to the supply of high-quality small arms through continuous pursuit of world-class manufacturing excellence. FNMI is a subsidiary of FN Herstal, S.A., and part of the Herstal Group, the global leaders in small arms design and production.

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 the supply chain established for this contract, U.S. Army criteria used to award the 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.

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     Amanda Covington                       Steve Wold
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