SOURCE: Metal Storm Limited

December 18, 2008 21:44 ET

Metal Storm Achieves Target for US Defence Contractor

BRISBANE, AUSTRALIA--(Marketwire - December 18, 2008) - Metal Storm Limited (ASX: MST) (PINKSHEETS: MTSXY).

Defence technology Company Metal Storm Ltd (ASX: MST) today announced Metal Storm Inc. (MSI) had completed a significant successful test firing for a US defence contractor.

Metal Storm CEO Dr Finniear said MSI had been working through a $US220,000 contract with a major US defence supplier.

"Work has been proceeding on this contract through 2008 and MSI has today successfully completed a significant test firing milestone under this contract," he said.

"Further details cannot be released at this time due to the confidentiality agreement within the contract."

The successful US test firing follows a favourable audit of Metal Storm's 3GL grenade launcher by independent Australian military consultants Nova Defence.

The 3GL three-shot grenade launcher is a world first, being the only 40mm launcher which is light and compact enough to attach as an accessory to an assault rifle, while also providing a three-shot, semi-automatic firing capability.

Dr Finniear said based on the findings of an audit by Nova's engineering team, man-firing of the 3GL would be conducted in the New Year.

"We can confirm that early in the New Year we expect to qualify the 3GL and ammunition tail for safe man-firing using inert warheads," Dr Finniear said.

"With the ability to demonstrate man-firing of 3GL, and with full high explosive dual purpose (HEDP) ammunition qualification in sight, we will be able to ramp up the sales process for 3GL in earnest."

Nova Defence's Nick Kemp said Metal Storm's engineers are now close to delivering the 3GL as a qualified, military standard weapon system.

"The 3GL itself was at a more advanced stage of maturity than we had expected, and with appropriate planning and support we believe that the 3GL program objectives are entirely achievable," he said.

Dr Finniear said Nova made recommendations on engineering process improvements to ensure that once Metal Storm completes the qualification tests, the background documentation and process for those tests would be of a standard acceptable to military forces.

Notes:

Metal Storm's Australian Stock Exchange trading code: MST

Metal Storm's OTC Symbol: MTSXY

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