MST) (NASDAQ: MTSX)
Metal Storm Limited advises that the company has received the attached
advice from Mr. JM O'Dwyer, the company's largest shareholder, in relation
to Mr. O'Dwyer and his associates' intentions for their shareholding in the
company. Mr. O'Dwyer has consented to his letter being released to the
market. Mr. O'Dwyer's advice does not impact the operations of the Company.
The board of directors advises that the Company's development programs are
proceeding on track and it is pleased with this progress.
Notes:
Metal Storm's Australian Stock Exchange trading code: MST
Metal Storm's NASDAQ Small Cap ticker symbol: MTSX
About Metal Storm
Metal Storm Limited is a multi-national defence technology company engaged
in the development of electronically initiated ballistics systems using its
unique "stacked projectile" technology. The company is headquartered in
Brisbane, Australia, and incorporated in Australia, with an office in
Arlington, Virginia. Metal Storm is working with government agencies and
departments, as well as industry, to develop a variety of systems utilising
the Metal Storm
non-mechanical, electronically fired stacked ammunition system. Metal
Storm's weapon technology uses computer-controlled electronic ignition and
a system of stacked projectiles, to achieve a completely
non-mechanical gun that is very lightweight and compact, providing a very
high firepower to weight ratio. The Metal Storm weapons system utilizes
multiple barrels mounted together on one platform which allows varying
munitions types to be deployed in a single, low cost, lightweight weapon
system. Firing the weapons by electronic ignition requires no moving
parts, allowing reliable long term unattended weapon operation.
Safe Harbour
Certain statements made herein that use the words "estimate," "project,"
"intend," "expect," "believe" and similar expressions are intended to
identify forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
involve known and unknown risks and uncertainties which could cause the
actual results, performance or achievements of the company to be materially
different from those which may be expressed or implied by such statements,
including, among others, risks or uncertainties associated with the
development of the company's technology, the ability of the company to meet
its financial requirements, the ability of the company to protect its
proprietary technology, potential limitations on the company's technology,
the market for the company's products, government regulation in Australia
and the US, changes in tax and other laws, changes in competition and the
loss of key personnel. For additional information regarding these and other
risks and uncertainties associated with the company's business, reference
is made to the company's reports filed from time to time with the
Securities and Exchange Commission, including the company's Form 20-F.
To: Metal Storm Limited 1 October 2007
Attention: Peter Wetzig
Company Secretary
Rhonda and I congratulate the Company on recent progress, particularly the
ongoing successful development of the 3GL and Redback systems, and the
success of the earlier June 30 technical and financial Milestone
deliverables. We are pleased with the expansion of engineering capability,
and with recent changes that seem to reflect an uncluttered clear focus on
first-product development, applied with good urgency.
Our increasing confidence is also based on objectives regarding the 3GL
released at the Annual General Meeting, that the Company expects:
-- 3GL will be tested on an M-16 by the end of 2007
-- 3GL and its munitions will be certified for man firing in the second
half of 2007
-- Limited release prototypes by early 2008
-- Field demonstration and munitions that prospective customers can trial
by mid 2008
Our confidence contrasts to some concern we held in recent years, because
of changes to Company strategy which appeared to us to carry with them a
slowing of some development and outcomes, and along with that a negative
impact on Shareholder wealth.
If our own improved expectation for the future is concurrent with that of
the Board and the Executive, we ask that the Company takes action to review
and upgrade Investor and Market communications, as it is disappointing to
note that the Company has been largely unsuccessful in communicating a
clearly understood, continuous and frequently updated pathway of sustained
progress toward fielded product.
On the matter of our shareholding in the Company, over time Rhonda and I
have continued to receive proposals for placement of a large parcel of our
shares, but to this time we have declined each, as none seemed to us to add
the value to the future of the Company that we would wish.
We will continue discussions with interested parties, and will also
continue to examine additional opportunities as they become available. We
will progress them only if we believe they are likely to add future value
to the company.
In the meantime, to support some specific family objectives, we will begin
to progressively release some stock in the Australian and US markets over
coming months, as we judge trading volumes will support. That preparation
includes the conversion of 25 million Metal Storm shares into 1.25 million
ADRs.
We will though, continue to hold the majority of our stock to provide a
potentially far greater return in the future, given the success that we
expect can result from the present activities of the Company, and from the
tighter product focus and schedules that appear to have been put in place
by the Company CEO, Dr. Lee Finniear.
In our view, the delivery of fielded product is also strongly enhanced by
the important technical and marketing relationship that the Company has
developed with Singapore Technology Kinetics (STK). STK's capabilities and
technical excellence with 40mm grenades, seem to us to provide a reliable
and rapid path for Metal Storm first-product, and with a partner who
appears hungry to achieve international market growth.
J. Mike O'Dwyer