SOURCE: Metal Storm Limited

March 20, 2006 18:25 ET

Metal Storm CEO Corner Update

Financial Position

ARLINGTON, VA -- (MARKET WIRE) -- March 20, 2006 -- Per David Smith, Chief Executive Officer of Metal Storm (NASDAQ: MTSX) (ASX: MST):

In the announcement of the Company's annual results on 16 March I made a statement that the Company had sufficient resources based on confirmed contract income and expected costs to sustain it until late July 2006. I want to make it clear that this calculation did not take account of other income which we have reasonable expectation of receiving in this period from sources which are not at this stage confirmed. We have taken a deliberately conservative approach in calculating our future cash flow.

I also stated in the announcement that the Company is exploring opportunities to raise capital. Whilst the board is yet to choose the exact format from the opportunities it has before it, the prime consideration for directors is the best interests of all shareholders. The evaluation and consideration of a balanced capital offering has been in the planning for some time.

Over the past year we have progressively demonstrated the technical viability of our 40mm weapons systems and we are now busy putting that into a commercial context. We have a number of contracts with leading defense organizations in the United States that we expect will lead to product orders in due course (Department of Energy; US Army Phase II SBIR for Crowd Control System; US Navy Phase II SBIR for Active Protection System) and we are currently working on several more opportunities for contracted development programs. We have several product development programs underway with defense industry partners (ARDEC; EOS; ST Kinetics) with the Redback™ Weapon System, 3GL grenade launcher, and a range of munitions being advanced.

We have never been in a stronger position to secure our objective of building sustainable revenue streams and profits for our shareholders.

David Smith
Chief Executive Officer.

Metal Storm's Australian Stock Exchange trading code: MST
Metal Storm's NASDAQ Small Cap ticker symbol: MTSX
About Metal Storm

Metal Storm Limited (NASDAQ: MTSX) (ASX: MST) is a multi-national defense 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 utilizing 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 Harbor

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:

    Investor queries:
    David Smith
    Metal Storm
    Ph: +1 703 248 8218

    Investor queries:
    Ian Gillespie
    Metal Storm
    Ph: +61 (0) 7 3221 9733