Metal Storm and ST Kinetics Jointly-Developed High Explosive Stacked Rounds

Singapore, Feb 20, 2006 (ABN Newswire) - Metal Storm Limited (ASX: MST)(PNK: MTSXF)(NASDAQ: MTSX) and Singapore Technologies Kinetics (ST Kinetics) are pleased to announce the successful firing of a range of jointly-developed, stacked configuration low velocity 40 mm electrically ignited munitions (EIM). The firings included high explosive (HE) munitions; enhanced blast explosive (EBX) munitions and air burst munitions (ABM). Less than lethal (LTL) munitions development will be undertaken in the future.

The firings follow from a teaming agreement that was signed by both parties in September 2005 to co-develop, produce and market 40 mm munitions for Metal Storm weapon systems. The agreement also provides for a broader relationship in which ST Kinetics would market Metal Storm 40 mm weapons systems in selected markets.

The firings, which were completed last week at ST Kinetics' Bukit Timah range in Singapore, validate the compatibility between Metal Storm's stacked round technology and selected ST Kinetics' commercially available warheads.

"ST Kinetics is keen to become a total solutions provider for 40 mm munitions, encompassing both lethal and less than lethal products. We are delighted with the results of our joint developments and their compatibility with Metal Storm's weapon systems. We look forward to capitalising on these initial achievements to further the commercial opportunities between our companies under our teaming agreement." Sew Chee Jhuen, Deputy President (Operations) and President Defence Business, ST Kinetics

"The significance of these firings is that we can now take selected ST Kinetics commercially available, off the shelf warheads and combine them with our own stacked munitions technology to provide an expanding suite of explosive and less than lethal munitions. The ability to use ST Kinetics' off the shelf warheads is a major commercial step for the company. It positions us to demonstrate a range of selectable munitions in our integrated weapon systems to defence customers. We value ST Kinetics' support in achieving this outcome, and plan to utilise this range of munitions in a number of existing and planned weapon system projects. ST Kinetics' munitions are very much a key element in many of our future projects." David Smith, Chief Executive Officer, Metal Storm Limited

Metal Storm is exhibiting its technology as a guest of ST Kinetics at the Asian Aerospace Exhibition in Singapore 21- 26 February 2006.

About METAL STORM LIMITED

Metal Storm Limited is a multi-national defence technology company engaged in the development of electronically initiated ballistics systems using its unique "stacked projectile" technology. The company is headquartered in Brisbane, Australia and incorporated in Australia. Metal Storm Limited technology and products are represented in the USA by Metal Storm Inc., which has offices in Arlington Virginia.

Metal Storm is working with government agencies and departments, as well as industry, to develop a variety of systems utilising the Metal Storm non-mechanical, electronically fired stacked ammunition system.

Metal Storm's weapon technology uses computer-controlled electronic ignition and a system of stacked projectiles, to achieve a completely non-mechanical gun that is very lightweight and compact, providing a very high firepower to weight ratio. The Metal Storm weapons system utilizes multiple barrels mounted together on one platform which allows varying munitions types to be deployed in a single, low cost, lightweight weapon system. Firing the weapons by electronic ignition requires no moving parts, allowing reliable long term unattended weapon operation.