July 26, 2011
ATK Selected as a Major Subcontractor for Intermediate-Range Ballistic Missile Target Rockets
SALT LAKE CITY, July 26, 2011 /PRNewswire/ -- ATK (NYSE: ATK) has received a $48 million major subcontractor award from Orbital Sciences Corporation (NYSE: ORB) to provide commercial solid rocket motors for the Missile Defense Agency (MDA) Intermediate Range Ballistic Missile (IRBM) target rocket program. With follow-on options ATK believes the contract has a potential value of up to $90 million. Orbital is the prime contractor for the IRBM program.
ATK's contract includes an initial award of $48 million for the first eight Orion 50S XLT and 50 XLT vehicles to be delivered by first quarter 2013, with contract options for delivery of 14 additional vehicles over the following two years. ATK's Orion solid rocket motors will provide first and second stage propulsion for the target rocket."This is an entirely new application for our versatile Orion solid rocket motor family," said Scott Lehr, ATK Aerospace Systems vice president and general manager of Strategic and Commercial Systems. "ATK Orion motors are currently used by MDA and Orbital for missile defense and in a variety of Orbital commercial launch vehicles."
The Orion motor product line was initiated in 1988 in a joint venture with Orbital for the development of the winged PegasusÃ® space launch vehicle. Since that time, the motors have been modified for use on a variety of platforms, including PegasusÃ® XL, TaurusÃ® and TaurusÃ® XL, Minotaur I and IV, Hyper-X. Versions of Orion motors are also used on the Ground-based Midcourse Defense Orbital Boost Vehicle.
"There is a significant cost and reliability benefit gained by selecting solid rocket motors that are already in production for other applications," said Lehr. Derived from Orbital's air-launched PegasusÃ® vehicle, the IRBM target is a multi-stage vehicle that will be air-launched from a standard C-17 cargo aircraft via a parachute extraction system, providing MDA with increased flexibility in testing its Ballistic Missile Defense System (BMDS).
ATK is an aerospace, defense, and commercial products company with operations in 22 states, Puerto Rico, and internationally, and revenues of approximately $4.8 billion. News and information can be found on the Internet at www.atk.com.
Certain information discussed in this press release constitutes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Although ATK believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those factors are: changes in governmental spending, budgetary policies and product sourcing strategies; the company's competitive environment; the terms and timing of awards and contracts; and economic conditions. ATK undertakes no obligation to update any forward-looking statements. For further information on factors that could impact ATK, and statements contained herein, please refer to ATK's most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with the U.S. Securities and Exchange Commission.
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