XM25 Individual Semi-Automatic Airburst System Manufacturing Development Contract for ATK 1809122.

The XM25 is a rifle that fires a 25mm airbursting round programmed by the weapon's integrated target acquisition and fire control system to burst directly above a designated target. The system allows soldiers to quickly and accurately engage targets by producing an adjusted aimpoint based on range, environmental factors, and user inputs.

The Army conducted Forward Operational Assessments (FOA) with early XM25 prototype weapons deployed in Afghanistan from November 2010 through May 2012 with soldiers actively employing them on patrols in areas experiencing high levels of enemy activity. Soldier feedback validated that the XM25 provides a unique combat advantage. Furthermore, the FOA provided information that will inform decisions regarding tactics, training, basis of issue, and system improvements prior to the weapon's fielding. ATK will be supporting another Army XM25 FOA scheduled for 2013 with a 36-gun battalion set of new pre-production prototypes.

"The XM25 has been battle-proven by our soldiers during U.S. Army operational assessments conducted in Afghanistan. We are very pleased with this system's performance and the overmatch capability it delivers to our warfighters," said Bruce DeWitt, Vice President and General Manager of ATK's Armament Systems Division. "We are focused on quickly making this weapon ready for production."

ATK is the prime contractor, systems integrator and ammunition provider for the XM25 program. Program management is headquartered at ATK's Armament Systems Division in Plymouth, MN. Program partners include Heckler & Koch in Sterling, Va. and L-3 Communications' Integrated Optical Systems, located in Pittsburgh, Pa.

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: 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.