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Press release from PR Newswire

ATK Receives $24 Million Contract Modification to XM25, Individual Semi-Automatic Airburst System Engineering and Manufacturing Development Contract

Wednesday, November 02, 2011

ATK Receives $24 Million Contract Modification to XM25, Individual Semi-Automatic Airburst System Engineering and Manufacturing Development Contract16:37 EDT Wednesday, November 02, 2011Modification Provides XM25 Ammunition, Hardware and Weapon Inspection, Test and Analysis to Support Further U.S. Army Early User Assessment Testing XM25 Successfully Completed an Initial Forward Operation Assessment in Afghanistan During 2010ARLINGTON, Va., Nov. 2, 2011 /PRNewswire/ -- ATK (NYSE: ATK) has received a $24 million contract modification to provide the U.S. Army with additional ammunition, hardware, test and analysis support further user assessments of the XM25, Individual Semi-Automatic Airburst System (ISAAS). In March 2011, ATK received a $65.8 million Engineering and Manufacturing Development (EMD) contract from the U.S. Army's Program Executive Office (PEO) Soldier for the XM25. This 30-month EMD contract provided the necessary funding for the continuing design, integration, production, and testing of full-up systems to ensure the weapon's final design meets performance requirements and is production-ready prior to Army-wide fielding. In 2010, the U.S. Army began a Forward Operational Assessment (FOA) of the XM25 with soldiers in Afghanistan to determine its capabilities through use in actual combat operations. Based on the weapon's initial success throughout the FOA, the Army has requested the items necessary to continue further weapon assessments. Information gathered during the ongoing operational assessment will provide valuable user feedback that will ultimately support the EMD process. "The XM25 provides the individual soldier with an advanced capability to quickly engage targets hidden behind walls or in defilade," said Bruce DeWitt, Vice President and General Manager for ATK Advanced Weapons. "By putting smart technology into the soldiers' hands, we're able to provide them with a distinct battlefield advantage by taking away an adversary's ability to hide behind cover."The ISAAS consists of a rifle that fires a 25mm airbursting round that is programmed by the weapon's integrated target acquisition and fire control system to detonate directly above an intended target. The system allows soldiers to quickly and accurately engage targets by displaying an adjusted aim point based on range, environmental factors, and user inputs. The weapon's target acquisition and fire control integrates a thermal capability with direct-view optics, laser rangefinder, compass, fuze-setter, ballistic computer, laser pointer and illuminator. These capabilities enable the weapon's use during day or night and in all weather conditions.ATK is the prime contractor and systems integrator for the XM25 program. Program management is headquartered at ATK's Advanced Weapons Division in Plymouth, Minn. Program partners include Heckler & Koch, Sterling, Va. and L-3 Brashear, Pittsburgh, Pa. As a prime contractor, ATK specializes in developing innovative, advanced weapon systems that provide affordable precision and increased weapon platform effectiveness for the individual soldier, tanks, artillery, mortars, naval gun systems, and tactical aircraft. ATK is an aerospace, defense, and commercial products company with operations in 22 states, Puerto Rico, and internationally, and revenues of approximately $4.8 billion.  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: the challenges of international ammunition sales; 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.Media Contact:  Investor Contact:Amanda CovingtonSteve WoldPhone:  801-779-4625Phone:  952-351-3056E-mail: amanda.covington@atk.comE-mail:  steve.wold@atk.comSOURCE ATK