SOURCE: Metal Storm Limited

June 29, 2008 23:10 ET

Metal Storm Receives USMC Contract for Demonstration of Non-Lethal Weapon System

ARLINGTON, VA--(Marketwire - June 29, 2008) - Metal Storm (ASX: MST) (NASDAQ: MTSX), is pleased to announce that Metal Storm Incorporated (MSI) has received a contract from the United States Marine Corps Systems Command (MARCORSYSCOM) to demonstrate capabilities for the Mission Payload Module (MPM) -- Non-Lethal Weapons System (NLWS). The firm fixed price contract is valued at US$103,751.

Under the terms of the contract, Metal Storm will prepare and deliver a demonstration model for a Government-controlled Market Research Demonstration (MRD). The MRD is intended to aid the Government in identifying current technologies that have been developed by industry. Following the MRD, the Government plans to initiate a new full-and-open contracting effort for a System Development and Demonstration (SDD) Phase contract. Following these phases, the government anticipates releasing proposals for production contracts.

The Mission Payload Module -- Non-Lethal Weapons System (MPM-NLWS) will provide the warfighter a non-lethal counter-personnel capability. The system will support missions requiring crowd control, and will deny, defend and control area access while allowing the warfighter to engage threats at standoff ranges and protect non-combatants.

Commenting on the award Peter D. Faulkner Metal Storm Inc. General Manager, said, "Metal Storm is pleased to be participating in the MPM program and are looking forward to the Market Research Demonstration. We believe the benefits of our technology when combined with that of our teaming partner Defense Technology, part of the BAE Systems Products Group, will provide significant improvements in range, area coverage and in particular, volume of fire over existing non-lethal weapon systems."

The MPM-NLWS will be mounted onto the High Mobility Multipurpose Wheeled Vehicle (HMMWV). Follow-on spirals will ultimately be integrated on other tactical vehicle platforms, unmanned ground vehicles, and Navy surface water vessels through an evolutionary acquisition process. Effects such as obscuration and illumination will be added to address future and emerging capability gaps. The weapons platform will be capable of providing greater range, area coverage, precision, and scalability than current NLW systems.

Notes:

Metal Storm's Australian Stock Exchange trading code: MST

Metal Storm's NASDAQ Small Cap ticker symbol: MTSX

About Metal Storm

Metal Storm Incorporated is an engineering services company, licensed to utilize Metal Storm Limited Stacked Projectile Electronic Ballistics Technology within the United States defense and homeland security markets.

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
    Dr Lee Finniear
    Chief Executive Officer
    Metal Storm Limited
    Ph: +61 7 3123 4700

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