ATK Reports Strong 3rd Quarter 2008 Earnings Per Share of $1.65

(ATK) – Sales Rise 17 Percent to $1.1 Billion – Organic Sales Up 13 percent

Third Quarter Net Income Rises 14 Percent to $58 million

ATK Increases FY08 Full-Year EPS Guidance to Range of $6.25 – $6.35

ATK Establishes FY09 EPS Range of $7.10 – $7.30 – a 12-17 percent Increase Over Anticipated FY08 Results

FY09 Sales Expected to Reach Approximately $4.5 Billion

MINNEAPOLIS, /PRNewswire-FirstCall/ — Alliant Techsystems (NYSE: ATK) reported today that earnings per share (EPS) in the third quarter of fiscal year 2008 (FY08), which ended on December 30, 2007, were $1.65. EPS was up 16 percent compared to the prior-year quarter, excluding an 11-cent benefit recorded in the prior-year quarter due to the extension of the Federal research and development tax credit.

Sales in the quarter rose 17 percent to $1.1 billion. Organic sales in the quarter were up 13 percent. The company reported net income of $58 million, a 14 percent increase over the prior-year period, and continued margin improvements to 10.5 percent versus 10.2 percent in the prior year. Orders in the quarter were $670 million, bringing year-to-date orders to $4.3 billion compared to $2.4 billion at this time a year ago. The company continues to expect FY08 orders of approximately $6.0 billion.

“Our shareholders enjoyed another exceptional quarter and the company is well positioned to deliver the results they have come to expect — double digit EPS growth and strong organic sales growth,” said Dan Murphy, Chairman and CEO. “Looking ahead to FY09, our strategy of affordable innovation for our customers will continue to deliver on these expectations.”

Earnings per share for the first nine months of FY08 rose 23 percent to $4.60 versus $3.74 in the prior year. Sales for the first nine months rose 19 percent to slightly more than $3.0 billion compared to $2.56 billion in the prior year. Net income was $162 million, a 25 percent increase over the prior-year period, and operating margins were 10.4 percent versus 9.9 in the prior year. Year-to-date free cash flow generated was $133 million compared to $106 million used in the prior year. The improvement in free cash flow reflects the company’s prior-year decision to prefund its pension plan, and increased profitability in the current year.

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