MTSX Metal Storm Limited ADS (MM)

David Smith Provides CEO's Update ARLINGTON, Va., April 21 /PRNewswire-FirstCall/ -- Metal Storm Limited (NASDAQ:MTSXNASDAQ:ASXNASDAQ:tradingNASDAQ:code:NASDAQ:MST). Metal Storm Limited today released the following statement which will be published in the CEO Corner section of the company website later. The company website address is http://www.metalstorm.com/ . David A. Smith - CEO Metal Storm I'd like to give you an update since my initial notes to you last month. In the next few days the company will be releasing its 2004 Annual Report. In the CEO's Report to shareholders I have outlined revised priorities and a new business plan for the Company. I recommend you read it as it provides a good picture of where I want to take the Company and some milestones to measure our success along the way. We will also be releasing the Notice of Annual General Meeting, which will be held in Melbourne, Australia on 25 May 2005. I look forward to meeting some of you at this event. Once again we are seeing a period of volatility in the Company's share price on both the ASX and Nasdaq, particularly in the past 5 trading days. I cannot explain the mysteries of the market, but I can put these movements in perspective for you. It is worth noting that the Company has approximately 521 million ordinary shares on issue and almost 10,000 individual registered shareholders. The average daily sales volume on the ASX over the past 5 trading days up to and including 20 April 2005 was 858,412 shares which represents only 0.16% of the total MST stock, and some of this volume is probably churn. The average number of trades per day on ASX in this period was only 52. This information tells me that the vast majority of our shareholders are standing firm and the volatility is being driven by a very small section only. I also think it is interesting to note that the average value of share parcels traded on ASX in this time was only AU$2,433 and that many trades have gone through in very low parcel sizes, some as low as AU$13 in value. To me this shows there is clearly a cynical element to some of the trading that we are seeing from this small section of traders. I believe that the vast majority of shareholders strongly support the Company and believe in its future. In my opinion the only way to effectively deal with share price volatility is through generating solid, sustainable, outcomes for the Company, and that is where my focus and that of the rest of the Metal Storm team lies. We have our eyes firmly focused on delivering the results that will drive real value for shareholders by producing profits and sustainable growth. We are in good shape to undertake the task. We have built a very solid foundation with the technical developments of the past two years. We have built an outstanding team of engineers and scientists to drive the conversion of our innovations into saleable products. We have conducted a very successful demonstration (March 2005) of our technology as part of an integrated systems package suitable for use with a variety of existing platforms in use by militaries around the world. We have a number of serious opportunities where we are working right now to secure initial commitments from customers for the supply of prototype systems. We have sufficient funds to support our activities through June 2006 without additional income, and longer if we can generate funds from commercial arrangements in the meantime. And, we are working to a very clear set of goals and business plan that keeps us focused on the things that will deliver the best result for shareholders in the shortest possible time frame. As I have said before, in a long career I have never been more excited about my job and the potential this company represents. David Smith CEO Metal Storm Limited About Metal Storm Metal Storm Limited is a defense technology company engaged in the development of electronically initiated ballistics systems using its unique "stacked round" technology. The company is headquartered in Brisbane, Australia and incorporated in the US, with an office in Washington DC and a defense engineering capability located in Seattle, operating as ProCam Machine LLC. The company has invented a ballistics technology that has no known conventional equivalent. Metal Storm is working with government agencies and departments, as well as industry, to develop a variety of systems utilizing the Metal Storm non-mechanical, electronically fired stacked ammunition system. Safe Harbor 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. DATASOURCE: Metal Storm Limited CONTACT: David Smith, CEO, Metal Storm Inc., +1-703-248-8218, ; Gregory Pettit of Hill & Knowlton, +1-212-885-0300, , for Metal Storm Limited Web site: http://www.metalstorm.com/

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