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Alliant Techsystems Awarded $2.1 Million Contract To Produce Portable Mine Countermeasure System For Southeast Asian Country

Minneapolis, Nov. 11, 1996 -- Alliant Techsystems (NYSE: ATK) said its Marine Systems Group has been awarded a $2.1 million foreign military sale (FMS) contract to produce the Forward Area Combined Degaussing and Acoustic Range (FACDAR) system for a Southeast Asian country. FACDAR is a portable mine countermeasure system that protects ships from underwater mines.

Under the contract, Alliant and its teammate Ultra Electronics, Hednesford, United Kingdom, will deliver two FACDAR systems by November 1997. Additions to the contract, including system spares and training, could increase the total value to $3.7 million. The sale was negotiated under Alliant's current U.S. Navy FACDAR contract, which has FMS options to sell up to eight systems to international navies that meet U.S. export requirements.

Richard Schwartz, president and chief executive officer, said the contract award is an example of how Alliant is leveraging its work on U.S. Navy programs to acquire international business and market share.

ÒWe integrated our acoustic sensor technology with Ultra's proven magnetic ranging equipment to respond to a pressing need for mine countermeasures around the world, said Schwartz. FACDAR allows navy crews to measure both the acoustic and magnetic signatures of their ships at any time, in any place -- an important feature that allows ships to be silenced for maximum protection without spending time and money traveling to fixed measurement ranges which are often outside their area of operations.

Schwartz said the proliferation of sea mines in regional areas will continue to increase the need for FACDAR, establishing Alliant's position in the international portable range market. He said Alliant currently is holding discussions with over a dozen countries that have portable ranging requirements, and expects another international contract in the next 90 days.

The Alliant/Ultra team is producing six FACDAR systems for the U.S. Navy under a $7.4 million contract awarded in August 1995. Contract modifications to include spares are expected to add $1 million to the total contract value over the next three years. Alliant will deliver the first FACDAR system in January 1997, with the remaining systems scheduled for delivery by the following May.

FACDAR uses low-cost commercial-off-the-shelf/non-developmental items (COTS/NDI) to measure the magnetic, acoustic, and pressure signatures of a ship as it passes over an undersea sensor array. The signature data is analyzed and displayed on computer terminals, enabling technicians to adjust shipboard systems to reduce the vessel's magnetic signature using a degaussing process. It also enables them to reduce or eliminate unnecessary noise contributing to the vessel's acoustic signature.

The complete range installation, including offloading, preparation time, and self-testing can be completed easily within a few days. All equipment (sensors, processing, fiber-optic cable, power, and support) fits into three standard ISO containers and can be deployed and recovered by workboat. The Alliant/Ultra team designed the system so that future upgrades can be incorporated easily. The FACDAR system also can be permanently installed as a fixed range.

Alliant Techsystems is the overall systems integrator for FACDAR and provides the acoustic signature analysis equipment plus the telemetry and tracking systems. Ultra Electronics supplies the magnetic signature analysis equipment. Final system integration and test is done at Alliant's Mukilteo, Wash., facility.

Alliant Techsystems' Marine Systems Group reported fiscal year 1996 sales of $164 million. It employs approximately 650 people at facilities in California, Minnesota, Rhode Island, and Washington. Major customers include the U.S. Department of Defense, allied military services, and prime contractors.

Alliant Techsystems is a $1.2 billion aerospace and defense company with approximately 7,600 employees and operations in 24 states. The company, headquartered in Hopkins, Minn., comprises four business groups: Aerospace Systems, Defense Systems, Marine Systems, and Emerging Business.