Metal Storm Announces Contract Awarded

Metal Storm Limited (NASDAQ: MTSX) and (ASX: MST).

Further to the Company’s previous market release on July 25, 2007, Metal Storm Inc. (MSI) has now advised it has been awarded a Sole Source Contract from the Naval Surface Warfare Center, Dahlgren Division (NSWCDD) for Qty 1 4 barrel 40mm Weapon Pod Assembly, Qty 1 Electronic Fire Control Unit and Qty 3 40mm 4042 Weapon Assemblies. The contract is valued at USD$63,864 with delivery to occur on or before October 31, 2007.

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.

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 utilises 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.

 Company Contact: Australia Dr Lee Finniear Chief Executive Officer Ph: +61 7 3123 4700  USA Peter Faulkner SVP US Operations Ph: +1 703 248 8218  

SOURCE: Metal Storm Limited