ATK Awarded $112 Million in Domestic Defense Ammunition Contracts for Medium- and Large-Caliber Ammunition Production and Development

Specifications:

Name:

ATK Awarded $112 Million in Domestic Defense Ammunition Contracts for Medium- and Large-Caliber Ammunition Production and Development

Location:

USA

Company:

ATK

Estimated Cost:

$112 Million

Source:

ATK.com

ATK , a world-leading producer of ammunition, precision weapons and rocket motors, announced today that it has received several domestic contracts totaling more than $112 million for medium- and large-caliber ammunition production and development. These awards will provide ammunition to arm air platforms such as the A-10, Apache attack helicopter and the AC-130 gunship, as well as training ammunition for crews maintaining their gunnery expertise on the Apache and Abrams main battle tank.

The contracts were awarded through U.S. Army Maneuver Ammunition Systems in its role as the Single Manager for Conventional Ammunition, the organization responsible for the procurement of ammunition for all U.S. Armed Services.

"Developing and producing ammunition that provides superior performance and reliability is the cornerstone of our business," said Dan Olson, vice president and general manager of ATK's Armament Systems division. "Our expertise spans millions of rounds produced of highly-effective tactical ammunition for air, ground and sea platforms as well as cost-effective training ammunition that provide a realistic experience for the warfighter."

"ATK strives to always provide our U.S. military customers with the quality and accuracy they demand, no matter the product," said Mike Kahn, president of ATK's Defense Group. "Our warfighters deserve only the best, and that is what we give them."

Program management for medium- and large-caliber ammunition is provided from the ATK Defense facility in Plymouth, Minnesota, while ammunition production occurs at ATK Defense-managed facilities located within Allegany Ballistics Laboratory in Rocket Center, West Virginia, Lake City Army Ammunition Plant in Independence, Missouri, and New River Energetics in Radford, Virginia.

The ammunition types supported through these contracts include the 30mm PGU-13 High Explosive Incendiary cartridge, LW30mm M788 Target Practice, M789 High Explosive Dual Purpose tactical ammunition, 40mm L/60 High Explosive Incendiary cartridge, and 120mm M1002 Multi-Purpose Anti-Tank, Target Practice with Tracer cartridge.

The 30mm PGU-13 High Explosive Incendiary cartridge is used to defeat light material targets and supports tactical use of the U.S. Air Force A-10 GAU-8/A Gatling gun.

The LW30mm M788 Target Practice and M789 High Explosive Dual Purpose tactical ammunition are fired from the U.S. Army's Apache attack helicopter ATK M230 Chain Gun® Automatic Cannon.

The 40mm L/60 High Explosive Incendiary cartridge is fired from the 40mm, M2A1 cannon for air-to-surface engagements by the U.S. Air Force AC-130 gunship.

The 120mm M1002 Multi-Purpose Anti-Tank, Target Practice with Tracer is designed for use with the M1A1/A2 Abrams main battle tank. The M1002 closely replicates the M830A1 High Explosive Anti-Tank, Multi-Purpose with Tracer tactical ammunition in appearance and ballistic performance to provide the armor crewman with an affordable, yet realistic training experience. This award is for year three of a four-year, multi-year contract previously awarded to ATK for tank training ammunition.

ATK's Defense Group is an industry leader in providing innovative and affordable ammunition, precision and strike weapons, electronic warfare systems, and missile components across air-, sea-, and land-based systems.

ATK is an aerospace, defense and commercial products company with operations in 22 states, Puerto Rico and internationally. News and information can be found on the Internet at www.atk.com, on Facebook at www.facebook.com/atk or on Twitter @ATK.

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; 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.