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ALLIANT TECHSYSTEMS REVIEWS POTENTIAL NEW BUSINESS AREA AND PERFORMANCE EXPECTATIONS WITH ANALYSTS AND SHAREHOLDERS

 ALLIANT TECHSYSTEMS REVIEWS POTENTIAL NEW BUSINESS AREA AND
 PERFORMANCE EXPECTATIONS WITH ANALYSTS AND SHAREHOLDERS
 NEW YORK, Dec. 11 /PRNewswire/ -- Alliant Techsystems (NYSE: ATK) said today it is actively pursuing a business relationship with a German company that could provide an opportunity to enter the conventional munitions demilitarization business in Germany, Eastern Europe and former Soviet states. Demilitarization involves the destruction and disposal of munition products.
 Toby G. Warson, president and chief executive officer, told securities analysts and shareholders that the German firm currently has contracts with the German government valued at approximately 80 million deutschemarks, or approximately $50 million, to conduct demilitarization operations in Germany.
 "The German government will spend approximately 1.2 billion deutschemarks, or approximately $750 million, to conduct demilitarization over the next three to four years," Warson said. "Our initial efforts in this new business area are directed at capturing a portion of this market."
 Warson said the worldwide demilitarization market, which is estimated to be in excess of $5 billion, has been created by the large volume of conventional munitions produced during the Cold War, much of which is unusable today. The volume of these munitions in the Republic of Russia alone is estimated to be 70 million metric tons, he said.
 "The market is being driven primarily by environmental concerns," Warson said. "We are actively looking at systems that address these concerns."
 Warson said demilitarization is an appealing new business area for Alliant Techsystems because it is synergistic with its core businesses. "It builds on our experience in systems management, material handling and automated munitions manufacturing," he said.
 Warson also noted two significant business developments at Metrum Information Storage:
 -- The suspension of sales and production of the COLORADO dry color processor due to an inability by supplier 3M to deliver an acceptable paper before 1994.
 -- An effort with primary customer Boeing to develop a 19mm rotary recorder product that will meet military specifications. The U.S. Navy is the initial market.
 Commenting on the FY92 defense budget recently approved by the U.S Congress, Kenneth J. Jenson, executive vice president and chief operating officer, noted that funding for the company's key programs remains solid. "Funding actually exceeded expectations for infantry weapons, mines and mine countermeasures," he said.
 Jensen noted that operational measures taken over the past two years to enhance competitiveness have resulted in significant benefits:
 -- Annual labor costs have decreased by approximately $75 million.
 -- Sales per employee have risen from $141,000 to $186,000.
 -- Sales per square foot have risen from $270,000 to $321,000.
 -- Capital expenditures have declined 30 percent.
 Jenson said that while the international market is developing more slowly than anticipated, the company expects international sales to average about 20 percent of total revenues between FY92 and FY96, up from 8 percent in FY90.
 "To a large extent, international sales will be driven by delivery of weapons platforms like the M1A1 tank, the Bradley Fighting Vehicle, the M109 Howitzer and the F16 fighter to countries in the Middle East and in the Asia-Pacific region," Jenson said.
 Jenson noted that Alliant Techsystems recently delivered an order for medium-caliber ammunition to Saudi Arabia for use on the Bradley Fighting Vehicle.
 Dean M. Fjelstul, vice president and chief financial officer, said he expects the company's sales to strengthen in the second half of the current fiscal year, which ends March 31, 1992.
 Fjelstul said the company anticipates sales of $700 to $800 million over the final two quarters. For the full year, sales should be flat or up slightly over the previous fiscal year, which ended Dec. 31, 1990. Alliant Techsystems reported sales of $499.3 million for the six months ended Sept. 30, 1991. Sales for the fiscal year ended Dec. 31, 1990, were $1.25 billion.
 Fjelstul said that Alliant Techsystems expects continued strong operating results from its defense and marine systems operations in the second half, but that margins would be somewhat lower than in the first half of the year. The company does not anticipate any further losses from Metrum Information Storage, which posted a loss of 50 cents per share in the first quarter as a result of a writedown related to its 19mm rotary recorder product.
 "We have not been able to completely overcome this loss," Fjelstul said. "As a result, we expect net income for the current fiscal year to be at the lower end of analysts' estimates, which range from $4 to $4.60 per share."
 Looking ahead to fiscal year 1993, Fjelstul said that although the company expects to enter the year with the same backlog with which it entered the previous year, revenues are likely to be down slightly from fiscal year 1992, reflecting a product mix change and a delay in international orders. Continuation of the turnaround at Metrum Information Storage should improve margins, and operating expenses are expected to be lower, he said.
 Alliant Techsystems supplies the high-quality precision armament, ordnance, marine and information storage systems to the U.S. government and its allies. The company is headquartered in Edina, Minn., and employs 7,100 people throughout the United States.
 -0- 12/11/91
 /CONTACT: Rod Bitz of Alliant Techsystems, 612-939-2646/
 (ATK) CO: Alliant Techsystems ST: New York, Minnesota IN: SU:


KH -- MN006 -- 1632 12/11/91 16:45 EST
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Date:Dec 11, 1991
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