ATK to Acquire Information Systems and Geospatial Businesses of MacDonald Dettwiler and Associates

    Strategic Acquisition Creates an International, Full-spectrum Space
    to Provide Mission Critical Information Solutions

    Acquisition Expected to Accelerate Long-term Sales and Earnings Growth

    MINNEAPOLIS, Jan. 8 /CNW/ -- Alliant Techsystems (NYSE:   ATK) announced
today that it has negotiated definitive agreements with Canadian-based
MacDonald, Dettwiler and Associates (TSX: MDA), to acquire its Information
Systems and Geospatial Information Services businesses for $1.325 billion
(CDN).  The company expects that this acquisition will provide a higher growth
and earnings profile, and be neutral to earnings per share (EPS) in fiscal
year 2009 (FY09) and accretive thereafter.
    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
    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
    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.
    Webcast Information
    ATK will webcast an investor conference call hosted by Chairman and CEO
Dan Murphy today at 5:00 p.m. Eastern Standard Time.  During the call, Mr.
Murphy will provide insight into the strategic focus of the acquisition.
    The call will be webcast by CCBN and can be accessed via the investor
relations page on ATK's website at:
Information about downloading Windows Media Player software, which is required
to access the webcast, will be available on the website.  Charts referenced
during the call will also be available on the website prior to the call.

    Conference call details:

    When:  5:00 p.m. Eastern Time, Tuesday, January 8.

    Who:   Dan Murphy, Chairman and CEO
           John Shroyer, Senior Vice President and Chief Financial Officer
           Steve Wold, Vice President, Treasurer and Investor Relations
    Headquartered in Edina, Minnesota, ATK is a world leader providing small
satellites and large satellite sub-systems, hypersonic engines, rocket motors
for spacecraft launch and orbit transfer -- programs critical to reaching new
space frontiers.  With approximately 17,000 employees and annual revenue in
excess of $4.1 billion (USD), ATK is the world's largest producer of solid
rocket motors and the prime contractor for the first stage of Ares I, NASA's
next-generation launch vehicle.  News and information can be found on the
Internet at
    MDA's Information Systems business provides space-based and ground-based
systems that support the information and operational needs of government and
commercial customers worldwide, and MDA's Geospatial Services business
provides these same customers with satellite imagery and value-added
information products. More information can be found at
    Certain information discussed in this document constitutes
forward-looking statements as defined in the Private Securities Litigation
Reform Act of 1995. Although ATK believes that the expectations reflected in
such forward-looking statements are based on reasonable assumptions, it can
give no assurance that its expectations will be achieved.  Forward-looking
information is subject to certain risks, trends, and uncertainties that could
cause actual results to differ materially from those projected.  Among these
factors are:  the ability to obtain required regulatory approvals of the
transaction or satisfy other conditions to the transaction; the failure of MDA
shareholders to approve the transaction; the occurrence of any event, change
or other circumstance that could give rise to the termination of the
acquisition agreement; the availability of capital market financing and the
costs thereof; the successful integration of the businesses; the risk that the
opportunities as a result of the transaction will not be realized, including
the risk that the revenue projections and benefits will not be achieved; as
well as delays in NASA's human-rated launch programs; changes in U.S. or
international governmental spending, budgetary policies and product sourcing
strategies; the company's competitive environment; risks inherent in the
development and manufacture of advanced technology; increases in commodity
costs, energy prices, and production costs; the terms and timing of awards and
contracts; program performance; program terminations; changes in cost
estimates; changes in foreign currency exchange rates; the outcome of
contingencies, including litigation and environmental remediation; actual
pension asset returns and assumptions regarding future returns, discount rates
and service costs; changes to accounting standards; changes in tax rules or
pronouncements; economic conditions; and the company's capital deployment
strategy, including debt repayment, share repurchases, pension funding,
mergers and acquisitions and any integration thereof.  ATK undertakes no
obligation to update any forward-looking statements.  For further information
on factors that could impact ATK, and statements contained herein, please
refer to ATK's most recent Annual Report on Form 10-K and any subsequent
quarterly reports on Form 10-Q and current reports on Form 8-K filed with the
U.S. Securities and Exchange Commission.

    Media Contact:                               Investor Contact:

     Bryce Hallowell                              Steve Wold
     Phone:   952-351-3087                        Phone:  952-351-3056
     E-mail:             E-mail:

For further information:

For further information: Media, Bryce Hallowell, +1-952-351-3087,, or investors, Steve Wold, +1-952-351-3056,, both of Alliant Techsystems Web Site:

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