Munitions Deals Cover International Markets ARLINGTON, Va., Sept. 30 /PRNewswire-FirstCall/ -- Defense technology company Metal Storm Limited (NASDAQ:MTSX) today signed a teaming agreement to work co-operatively with Singapore Technologies Kinetics Ltd (ST Kinetics) in the development, production and marketing of 40mm munitions for Metal Storm weapon systems. The agreement also provides for a broader relationship in which ST Kinetics, one of the world's most respected defense manufacturers with global operations, would market Metal Storm 40mm weapons systems in a range of markets. It follows the recent agreement with the US Army Research Development and Engineering Center (ARDEC) to develop and adapt munitions for use with Metal Storm 40mm weapons systems. These deals mean Metal Storm has formed relationships with munitions providers in its major international markets, consistent with its strategy of commercializing its technology by acting as an integrator of weapons systems. Under the latest agreement, ST Kinetics munitions would be converted to a Metal Storm stacked configuration and marketed with Metal Storm weapon systems in the world market. "These agreements cover the other critical half of our weapons systems -- munitions. Without munitions our systems have no purpose," said Metal Storm Chief Executive Officer (CEO), David Smith. "It means we have an arrangement to convert US Army inventory rounds in the United States and in all other markets we propose to have munitions available through ST Kinetics." ST Kinetics is one of the world's leading 40mm munitions designers and manufacturers with a range that includes unique capabilities for Metal Storm weapon systems. The agreement provides opportunities for the rapid development, testing and eventual certification of a range of 40mm munitions for use with Metal Storm's weapon systems. ST Kinetics' President of Defense Business, Mr. Sew Chee Jhuen, said his company is looking forward to working with Metal Storm on its unique technologies as well as the innovative concept it brings to the battlefield. "The teaming agreement epitomizes ST Kinetics culture of innovation and its desire to leverage technologies for the best products and performance. The experience will broaden our capabilities, and improve our position as a market leader for 40mm munition products," he said. Notes: Metal Storm's Australian Stock Exchange trading code: MST Metal Storm's NASDAQ Small Cap ticker symbol: MTSX http://www.metalstorm.com/ About Singapore Technologies Kinetics Ltd (ST Kinetics) ST Kinetics is the land systems arm of Singapore Technologies Engineering. It provides integrated systems, specialty vehicles and their related services for defence, government and commercial applications. This includes design and development, systems integration, production, operations & support and life cycle management. Through its subsidiary, Advanced Material Engineering Pte Ltd, ST Kinetics also designs and manufactures conventional and smart munitions, advanced protective materials as well as guided system components. It also provides consultancy, customised training, design and engineering services for homeland security solutions. Link to website http://www.stengg.com/ 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. 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: Investor - Gregory Pettit, +1-212-885-0301, , or Media - Stefan Anikewich, +1-212-885-0505, , both of Hill & Knowlton for Metal Storm Limited Web site: http://www.metalstorm.com/ http://www.stengg.com/

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