ATK Awarded Follow-On Options Worth $225 Million for Minuteman III Propulsion Replacement Program
Contract for Sixth Option Extends Program Through February 2009
Alliant Techsystems (NYSE: ATK) has received contract options worth $225 million from Northrop Grumman Corporation (NYSE: NOC – News) to refurbish components and replace propellant on Minuteman III Stage 1, 2 and 3 rocket motors. This award is the sixth of seven full-rate production options under the ICBM Propulsion Replacement Program.
The sixth option is for 84 booster sets and is worth $213 million. It will extend the program through February 2009. ATK also received $12 million for spare parts related to the on-going option five contract.
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 maintain a steady rate of production since the transition of the program. We’re proud to support this vital program and look forward to performing this work in the years ahead,” said Ron Dittemore, President of ATK Launch Systems Group.
ATK is a $3.4 billion advanced weapon and space systems company employing approximately 15,000 people in 21 states. News and information can be found on the Internet at http://www.atk.com .
Forward-Looking Statement
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, 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.
