With more than 1,900 employees and estimated FY09 revenues of approximately $500 million (U.S.), the MDA business ATK is acquiring is a global leader in space-based radar systems, space robotics, satellite systems, and imaging satellite ground stations and processing; with additional world-class capabilities in satellite payloads, C4ISR, and geospatial services.

The transaction, which is subject to regulatory and MDA shareholder approval, is expected to close early in the first quarter of the company's FY2009. ATK has arranged committed financing to support the proposed acquisition. However, there can be no assurance that the transaction will be completed.

This acquisition will establish ATK as a full-spectrum international space company, providing launch services, next-generation satellites, robotics, and the ground systems that will process and deliver mission critical information solutions. It will also provide an entry point for MDA's proven high-performance technology to the U.S. market, creating significant sales growth opportunities. Further, it will diversify ATK's portfolio into non-U.S. and commercial space markets, nearly doubling the company's international revenues. The transaction will also enhance ATK's existing and potential content in space exploration, Operationally Responsive Space, and C4ISR; while adding satellite ground station and geospatial imagery content.

"The welcome addition of MDA's Information Systems and Geospatial Information Services, and their talented workforce substantially grows our market position in space systems, both domestically and internationally," said Dan Murphy, ATK Chairman and CEO. "ATK has enjoyed a close working relationship with MDA for many years. Like ATK, its business model is one of low-cost innovation. Together we will make a significant contribution to the global space industry."

"We believe that this transaction provides an excellent home for our Information Systems and Geospatial Services business as it is highly complementary to ATK's business," said MDA President and CEO, Daniel Friedmann. "ATK is committed to realize the inherent value in the U.S. market of the many accomplishments of our employees."

Beginning April 1, 2008, ATK will establish a fourth business group, ATK Space Systems. Carl Marchetto, formerly Executive Vice President and General Manager of Orbital Sciences Corporation's Space Systems Group, will become President, ATK Space Systems. With operations in four Canadian Provinces and across the United States, ATK Space Systems is expected to generate FY09 sales of approximately $900 million. It will be a full-spectrum satellite and space systems business building markets in North America and around the world.

The combined value of ATK Launch Systems and the new Space Systems group will make ATK the fifth largest space systems company in North America.

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