ATK Awarded Follow-on Options Worth $541 Million for Minuteman III Propulsion Replacement Program
$194 Million Contract Awarded for Fifth Option Extending Program Through March 2008
Additional Options Potentially Extend Minuteman Program Through August 2009
Minneapolis, February 27, 2006 – Alliant Techsystems (NYSE: ATK) has received contract options worth $541 million from Northrop Grumman Corporation (NYSE: NOC) to refurbish components and replace propellant on Minuteman III Stage 1, 2 and 3 rocket motors. This award is the fifth of seven full-rate production options under the ICBM Propulsion Replacement Program. The fifth option is worth $194 million and will extend the program through March 2008. Option five is for 78 booster sets. Options 6 and 7 are for 84 and 50 booster sets respectively, and would extend the program through August 2009.
The Minuteman III Propulsion Replacement Program (PRP) began in 1998 as a Joint Venture between ATK and Pratt & Whitney. All work content was transitioned to ATK in the 2003-2004 timeframe following a contract restructure. Most of the work on the contract will be performed at the company’s facilities in Utah.
“ATK has worked closely with Northrop Grumman and the U.S. Air Force to successfully transfer the remaining PRP work to our facilities. We’re proud to support this vital program and look forward to performing this work in the years ahead, even as we begin to work on elements of potential future systems,” said Ron Dittemore, Group President, ATK Thiokol.
ATK is a $3.1 billion advanced weapon and space systems company employing approximately 15,000 people in 23 states. 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: continued funding for the PRP, 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, reference should be made to ATK’s filings with the Securities and Exchange Commission, including quarterly reports on Form 10-Q, current reports on Form 8-K, and ATK’s Annual Report on Form 10-K for the fiscal year ended March 31, 2005.
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