ATK Delivers 2 Billion 7.62mm Rounds to the U.S. Army from the Lake City Army Ammunition Plant (LCAAP)

ATK Delivers More than 350 Million 5.56mm Enhanced Performance Rounds Using Modernized Production Line Equipment

ATK Receives $131 Million in Small-Caliber Ammunition Orders

Sep 13, 2012

ARLINGTON, Va., Sept. 13, 2012 /PRNewswire/ -- ATK (NYSE: ATK) recently achieved a world-class production milestone by delivering the 2 billionth 7.62mm round of ammunition manufactured at the Lake City Army Ammunition Plant (LCAAP) in Independence, Mo.  Since assumption of LCAAP manufacturing operations in 2000, ATK has increased the production rate for 7.62mm ammunition five-fold in direct support of U.S. Army requirements.   

ATK, the world's largest supplier of ammunition, has established a proven record of success in managing and modernizing the Department of Defense's primary source for military small-caliber rifle ammunition.

"I am very proud of what ATK has delivered for the U.S. Army while being entrusted with our stewardship responsibility to safely and efficiently operate the Lake City Army Ammunition Plant. We value our commitment to deliver a lean, scalable and sustainable capability that will serve the needs of our nation for years to come," said Mike Kahn, President of ATK Defense.  "We take to heart that the lives of our warfighters depend on the quality of each and every round we produce at this government-owned facility.  We are honored with this responsibility."

In partnership with the U.S. Army, ATK successfully implemented a complex expansion and modernization program at LCAAP that resulted in increasing plant production from 374 million to more than 1.6 billion rounds annually.  This includes high-volume deliveries of the U.S. Army's M855A1 Enhanced Performance Round on modernized equipment.  The EPR is an enhanced version of the M855 5.56mm cartridge and offers a significant breakthrough in ammunition performance for America's warfighters.  ATK has delivered more than 350 million M855A1 rounds since transitioning to production in 2010.

"The modernized 5.56mm high-speed manufacturing equipment has allowed us to ramp up production of the Enhanced Performance Round in support of our warfighters' needs," said Kent Holiday, Vice President and General Manager for ATK's Small Caliber Systems division, headquartered at LCAAP.  "Our production flexibility assures the customer we can seamlessly right size capacity to remain responsive to uncertain future demands."

ATK implemented a unique lean manufacturing system that focuses on maximizing efficiencies through a continuous improvement based culture that targets the elimination of waste.  ATK also initiated a system that employs cellular manufacturing processes, integrated enterprise information systems, and advanced material handling capabilities designed to enhance production efficiencies and throughput. 

ATK received recent orders totaling $131 million for small-caliber ammunition under an Indefinite Delivery/Indefinite Quantity (IDIQ) contract with the U.S. Army Contracting Command, Rock Island (ACC-RI).  These orders include a mix of 5.56mm, 7.62mm and .50-caliber military ammunition to be produced at LCAAP.  

ATK is an aerospace, defense, and commercial products company with operations in 21 states, Puerto Rico, and internationally.  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: assumptions regarding the continued operation of the LCAAP, 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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Investor Contact:



Rod Gibbons

Steve Wold

Phone: 410-864-4932

Phone: 952-351-3056

E-mail: rod.gibbons@atk.com

E-mail: steve.wold@atk.com

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