FY02 Sales Increase 58 Percent To $1.8 Billion; Free Cash Flow Totals $119 Million

FY03 Sales Guidance Increased; EPS, Cash Guidance Confirmed

ATK Board Approves 3-For-2 Stock Split

Summary – Continued strong performance in core businesses and two major strategic acquisitions boosted ATK fiscal year 2002 sales, earnings, and cash flow ahead of the company’s guidance for the year. Record operating margins of 12.4 percent and a 58-percent rise in sales to $1.8 billion drove EPS from continuing operations up 15 percent to $3.67. Free cash flow more than doubled to $119 million, allowing the company to pay back more than $130 million of debt. The acquisitions of ATK Thiokol Propulsion and the Federal(R) and CCI(R)/Speer(R) ammunition and related businesses solidified the company’s leadership positions in propulsion and ammunition and set the stage for continued internal and external growth. Given favorable market conditions and strong operating momentum, the company is raising its sales guidance for FY03, confirming previous cash guidance, and confirming that it will be at the high end of its previous EPS guidance range. In recognition of prospects for continued growth, the board of directors approved a 3-for-2 stock split. – End summary

ATK (Alliant Techsystems,
NYSE: ATK), the world’s leading supplier of solid propulsion systems and the
nation’s largest manufacturer of ammunition, said fiscal year 2002 earnings
per share from continuing operations rose 15 percent to $3.67 from $3.20 a
year ago. (All per-share figures reflect a 3-for-2 common stock split
effective Sept. 7, 2001. They have not been adjusted for a 3-for-2 stock
split announced today that is payable on or about June 10, 2002.)

Sales for the year, which ended March 31, increased 58 percent to
$1.802 billion from $1.142 billion a year ago. New revenues resulting from
the acquisitions of ATK Thiokol Propulsion and the Federal and CCI/Speer
ammunition and related businesses and higher sales of small-caliber and
medium-caliber ammunition were the principle factors in the growth.

Fourth-quarter earnings per share from continuing operations rose
17 percent to $1.03 from 88 cents in the same period a year ago, while sales
for the quarter increased 59 percent to $515 million from $324 million last

“Fiscal year 2002 was an outstanding year by every measure,” said Paul
David Miller (PDM), chairman and chief executive officer. “Performance in our
core businesses was strong as the ATK team delivered sales growth, improved
earnings, and robust cash flow. We also benefited from two major strategic
acquisitions that doubled the size of the company and solidified our
leadership positions in solid propulsion systems and ammunition. Our strong
operating momentum together with increasing opportunities in areas where we
excel, such as gun-launched precision munitions and propulsion for missile
defense programs, gives us increased confidence in our ability to continue to
deliver on our commitments.”

Other key FY02 performance factors:

* EBIT margins (earnings before interest and income taxes as a percentage
of sales) rose to a record 12.4 percent from 11.9 percent a year ago,
reflecting strong core business performance and acquisition synergies.

* Cash flow as indicated by earnings before interest, taxes, depreciation,
and amortization (EBITDA) was $302 million or $12.89 per share in fiscal
year 2002, compared with $181 million or $8.53 per share last year.

* Free cash flow (cash from operations less capital expenditures)
generated during the year increased to $119 million from $50 million a
year ago due to improved profitability, working capital management, and
the benefits of income tax strategies. This strong performance allowed
the company to pre-pay approximately $121 million of debt in addition to
approximately $11 million in scheduled debt payments.

* Orders rose to $1.4 billion from $1.2 billion last year. Major orders
booked included propulsion for missile defense and strategic missile
programs, composite structures for space launch vehicles, the annual
portion of multi-year awards for ammunition production, and next-
generation tank ammunition.

* Contracted backlog at year end was $3.5 billion. Total backlog, which
includes contracts awarded but for which the company is not yet
authorized to incur costs, plus the value of unexercised options, was
approximately $5.6 billion.

* Aerospace Group sales more than doubled to $1.066 billion from
$506 million a year ago, reflecting new revenues from ATK Thiokol

* Defense Group sales rose 15 percent to $773 million from $674 million
last year, driven by higher volume from small-caliber and medium-caliber
ammunition programs and new revenues from the acquired ammunition

Positioned for Continued Growth in FY03

“We are entering fiscal year 2003 with strong performance momentum and a
clear strategy for growth,” said PDM. “We have re-shaped the company
organizationally to key on keeping pace with all opportunities in the legacy
lanes of propulsion and ammunition. Most importantly, we took the step to
participate fully in the future of precision munitions — especially
gun-launched munitions. We are also continuing to pursue external growth
opportunities that will build on our acquisitions of ATK Thiokol Propulsion,
the Federal and CCI/Speer ammunition and related businesses, and most recently
the ordnance division of Boeing, which is expected to close by the end of May.
Strong cash flow will enable us to continue to aggressively pay down debt,
providing the strategic flexibility to pursue both internal and external
growth opportunities. We remain confident that we will continue to deliver on
our commitments in fiscal year 2003.”

ATK said it continues to expect fiscal year 2003 earnings per share from
continuing operations to be at the high end of the $4.77 to $4.81 range. The
guidance for FY03 sales has been increased to between $2.025 billion and
$2.050 billion. The projection for free cash flow remains in excess of
$100 million, and the EBIT margin rate is expected to be in excess of 13
percent. For both the first and second quarters of the year, the company
expects earnings per share from continuing operations to be in the $1.03 to
$1.06 range.

All estimates for fiscal year 2003 earnings per share and EBIT margin
rates reflect the adoption on April 1, 2002, of Statement of Financial
Accounting Standards (FAS) No. 142, “Goodwill and Other Intangible Assets,”
which, among other things, eliminates the amortization of goodwill and certain
intangibles. To facilitate comparisons of earnings per share estimates with
historical results, amortization of goodwill and other intangibles in the
first and second quarters of fiscal year 2002 was $2.6 million and
$4.2 million, respectively. Amortization of goodwill and other intangibles
for fiscal years 2002 and 2001, both of which ended March 31, was
$15.4 million and $2.7 million, respectively.

In recognition of ATK’s strong operating performance and prospects for
continued growth, the company’s board of directors has approved a 3-for-2
common stock split, which was announced in a separate news release today.

ATK is a $2 billion aerospace and defense company with leading positions
in propulsion, composite structures, munitions, and precision capabilities.
The company, which is headquartered in Edina, Minn., employs approximately
11,600 people and has three business groups: Aerospace, Precision Systems,
and Ammunition. ATK news and information can be found on the Internet at

The forecasts, projections, expectations, and opportunities for
anticipated earnings per share, sales, EBIT margins, and cash flow included in
this news release are “forward-looking statements” as defined in the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve risks and uncertainties that could cause actual results to differ
materially from anticipated results, including changes in governmental
spending and budgetary policies, economic conditions, the company’s
competitive environment, the timing of awards and contracts, the outcome of
contingencies, including litigation and environmental remediation, program
performance, and sales projections, in addition to other factors identified in
ATK’s filings with the Securities and Exchange Commission.

Webcast Information: ATK will webcast its investor conference call on
fiscal year 2002 results at 10:00 a.m. Eastern Daylight Time today. The live
audio web cast will be available on the investor relations page of ATK’s web
site at http://www.atk.com. Information about downloading free Windows Media
Player software, which is required to access the webcast, is available on the
website. For those who cannot participate in the live webcast, a telephone
recording of the conference call will be available for one month after the
call. The telephone number is 719-457-0820, and the confirmation code is

                           ALLIANT TECHSYSTEMS INC.

    (In thousands except            QUARTERS ENDED          YEARS ENDED
      per share data)             March 31  March 31   March 31     March 31
                                    2002      2001        2002         2001

    Sales                         $514,694  $323,897  $1,801,605   $1,141,949
    Cost of sales                  397,863   257,421   1,420,348      905,574
    Gross margin                   116,831    66,476     381,257      236,375
    Operating expenses:
      Research and development       6,274     4,571      20,589       11,575
      Selling                       16,505     5,963      44,063       24,372
      General and administrative    31,324    19,988      92,923       64,334
      Total operating expenses      54,103    30,522     157,575      100,281
    Earnings before interest
     and income taxes               62,728    35,954     223,682      136,094

      Interest expense             (19,928)   (7,168)    (84,005)     (33,738)
      Interest income                  370       402       1,199        1,038
    Earnings from continuing
     operations before
     income taxes                   43,170    29,188     140,876      103,394

    Income tax provision            16,405    10,040      53,533       35,473
    Minority interest expense,
     net of income taxes                                   1,240
    Income from continuing
     operations                     26,765    19,148      86,103       67,921

    Loss on disposal of discontinued
     operations, net of income taxes   (10)               (4,660)
    Income before
     extraordinary loss             26,755    19,148      81,443       67,921

    Extraordinary loss on early
     extinguishments of debt,
     net of income taxes            (1,124)              (12,116)
    Net income                     $25,631   $19,148     $69,327      $67,921

    Basic earnings per common share:
      Income from continuing
       operations                    $1.07     $0.91       $3.83        $3.28
      Discontinued operations                              (0.21)
      Extraordinary loss              (.04)                (0.54)
    Basic earnings per common share  $1.03     $0.91       $3.08        $3.28

    Diluted earnings per common share:
      Income from continuing
       operations                    $1.03     $0.88       $3.67        $3.20
      Discontinued operations                              (0.20)
      Extraordinary loss              (.04)                (0.52)
    Diluted earnings per common share $.99     $0.88       $2.95        $3.20

    Average number of
     common shares                  24,965    21,059      22,497       20,723

    Average number of common
     and dilutive shares            25,931    21,800      23,464       21,233

                           ALLIANT TECHSYSTEMS INC.
                         CONSOLIDATED BALANCE SHEETS

    (In thousands except share data)            March 31, 2002  March 31, 2001
    Current assets:
      Cash and cash equivalents                      $8,513          $27,163
      Net receivables                               432,823          214,724
      Net inventory                                 125,308           54,136
      Deferred income tax asset                      62,299           16,478
      Other current assets                           42,467           20,322
         Total current assets                       671,410          332,823
    Net property, plant, and equipment              464,830          303,188
    Goodwill                                        748,798          117,737
    Prepaid and intangible pension assets           269,504          106,048
    Other assets and deferred charges                56,750           19,708
         Total assets                            $2,211,292         $879,504

    Liabilities and Stockholders' Equity
    Current liabilities:
      Current portion of long-term debt              $4,805          $69,200
      Accounts payable                               84,602           71,758
      Contract advances and allowances               61,257           34,494
      Accrued compensation                           97,670           38,487
      Accrued income taxes                            4,408           11,873
      Other accrued liabilities                     119,279           66,151
         Total current liabilities                  372,021          291,963
    Long-term debt                                  867,638          207,909
    Deferred income tax liability                    65,091           28,636
    Post-retirement and post-employment
     benefits liability                             235,639          108,203
    Other long-term liabilities                     114,102           44,461
         Total liabilities                        1,654,491          681,172
    Common stock - $.01 par value
      Authorized - 60,000,000 shares Issued
       and outstanding 25,229,812 shares
       at March 31, 2002 and
       14,070,569 at March 31, 2001                     289              185
    Additional paid-in-capital                      478,489          231,598
    Retained earnings                               334,507          265,180
    Unearned compensation                            (4,864)          (3,854)
    Other comprehensive income                      (14,122)          (6,140)
    Common stock in treasury, at cost
     3,625,702 shares held at March 31, 2002
     and 4,426,202 at March 31, 2001               (237,498)        (288,637)
         Total stockholders' equity                 556,801          198,332
         Total liabilities and
          stockholders' equity                   $2,211,292         $879,504

                           ALLIANT TECHSYSTEMS INC.

    (In thousands)                                        YEARS ENDED
                                                March 31, 2002  March 31, 2001
    Operating activities
      Net income                                     $69,327          $67,921
      Adjustments to net income to arrive
       at cash provided by operating activities:
        Depreciation                                  53,928           36,533
        Amortization of intangible assets
         and unearned compensation                    24,745            8,447
        Deferred income tax                           (4,387)          11,714
        Loss (gain) on disposal of property            1,894             (251)
        Minority interest expense, net of income taxes 1,240
        Loss on disposal of discontinued
         operations, net of income taxes               4,660
        Extraordinary loss on early extinguishment
         of debt, net of income taxes                 12,116
        Changes in assets and liabilities:
          Receivables                                (15,846)          30,157
          Inventory                                   (6,872)            (507)
          Accounts payable                           (22,453)          (6,224)
          Contract advances and allowances            24,222          (37,188)
          Accrued compensation                        10,703            5,518
          Accrued income taxes                        19,450            4,443
          Accrued environmental                       (5,009)          (2,191)
          Pension and post-retirement benefits       (23,443)         (35,028)
          Other assets and liabilities                17,777           (8,724)
    Cash provided by operating activities            162,052           74,620

    Investing activities
      Capital expenditures                           (42,884)         (24,755)
      Acquisition of businesses                     (714,353)          (1,400)
      Proceeds from sale of a
        portion of a subsidiary                       (2,000)
      Proceeds from sale of property,
       plant, and equipment                              276            9,709
      Proceeds from sale of operations                                 17,800
    Cash (used for) provided
     by investing activities                        (758,961)           1,354

    Financing activities
      Net borrowings on line of credit                                (49,000)
      Payments made on bank debt                    (452,866)         (55,650)
      Payments made to extinguish debt              (276,800)
      Proceeds from issuance of long-term debt     1,325,000
      Proceeds from issuance of stock                 13,011
      Payments made for debt issue costs             (43,985)
      Payments made for stock issue costs             (8,137)
      Net purchase of treasury shares                 (2,697)          (4,652)
      Proceeds from employee stock compensation plans 24,733           14,726
    Cash provided by (used for) financing activities 578,259          (94,576)
    Decrease in cash and cash equivalents            (18,650)         (18,602)
    Cash and cash equivalents -
     beginning of period                              27,163           45,765
    Cash and cash equivalents - end of period         $8,513          $27,163