SOURCE: Metal Storm Limited

January 16, 2008 00:52 ET

Metal Storm Limited -- US Navy Contract Update

BRISBANE, AUSTRALIA--(Marketwire - January 16, 2008) - Metal Storm Limited (ASX: MST) (NASDAQ: MTSX).

On 17 November 2006, Metal Storm Limited advised the market that Metal Storm Inc. (MSI) had been notified of a potential contract with the US Navy Space & Warfare Center (SPAWAR) for the production of one (1) anti-personnel unattended weapons pod system utilising Electronic Ballistic Technology (EBT) and one (1) operator unit.

Since that announcement the company has advised the market from time to time of its expectations in relation to this contract.

Recently a number of shareholders have contacted the company with concerns that the contract may have been cancelled.

In response to this concern, MSI has specifically confirmed with SPAWAR Program Manager the current status of the contract. The SPAWAR Program Manager has advised MSI that the potential contract is still proceeding and has not been cancelled. It remains SPAWAR's intention that the contract be taken to award and completion. Recent delays to the contract award have been related to obtaining appropriate re-allocation of funds for the new fiscal year.

The company will provide further information to the market in relation to this potential contract when advised by MSI of its award. At this time the company is not able to give advice on the potential timing of an award.

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. Metal Storm Limited technology and products are represented in the USA by Metal Storm Inc., which has offices 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.

Contact Information

  • Company Contact:
    Australia & USA
    Dr Lee Finniear
    Chief Executive Officer
    Metal Storm Limited
    Ph: +61 7 3123 4700

    Peter Faulkner
    General Manager
    Metal Storm Inc.
    Ph: +1 703 248 8218