MINNEAPOLIS -- ATK has received a $77 million, three-year contract to develop and qualify the M829E4 120mm Advanced Kinetic Energy (AKE) tactical tank round for the U.S. Army.

At the completion of this contract, ATK will have completed the second phase of the Engineering Manufacture Design (EMD) work required to qualify the new round for use with the Army's M1A2 SEP Abrams Main Battle Tank. Upon qualification, the round will enter full-rate production.

"During our 30 years of program experience partnering with the Army, we have type classified 10 of the 12 120mm tactical and training rounds for the Abrams tank. This experience makes ATK uniquely qualified to develop this next generation capability for the Army," said Bruce DeWitt, Vice President and General Manager for ATK Advanced Weapons Division. "ATK provided the 120mm ammunition that helped 'upgun' the Abrams from a 105mm to a 120mm main gun and we look forward to working with the Army to maintain the Abrams' standing as the world's dominant tank."

The M829E4 is the Army's fifth generation, 120mm kinetic energy cartridge. The round is being developed to provide the Abrams M1A2 SEP (System Enhancement Package) with heavy armor defeat capabilities that allow the tank crew to engage and destroy threat Main Battle Tanks protected with advanced, explosive reactive armor at extended ranges as well as in Military Operations in Urban Terrain (MOUT), mountain, and nontraditional battlefields. The round will allow for the use of fewer rounds and allow for faster enemy engagements - factors that will ultimately increase crew and platform survivability.

Having successfully completed the first EMD phase, ATK was selected to advance to the second EMD phase based on an industry competition that included the results of a ballistic demonstration test and shoot-off and final proposal used to provide the best value decision for the Army.

Since 1980, ATK has delivered more than four million rounds of 120mm tactical and training tank ammunition to the U.S. Army, U.S. Marine Corps, and allied militaries. Through its proven, system-level contracting approach that reduces the risk to the customer, ATK has delivered a constant supply of 120mm ammunition that is consistently reliable and affordable.

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 developing next-generation ammunition; 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.