Metal Storm Announces Executive Changes to Progress Growth Strategy.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--March 26, 2003

Metal Storm Limited (NASDAQ ticker symbol: MTSX and ASX trading code: MST) today announced important changes to its executive team, the purpose of which is to further accelerate its recent progress in securing United States R&D programs.

The personnel changes include:

 
-- the appointment of a new CEO, Chuck Vehlow, effective immediately; 
 
-- the company's founder and inventor of Metal Storm technology, Mike O'Dwyer, standing down as CEO to focus solely on innovation and product development. He will immediately assume the full time executive position of Director - Scientific Innovation; 
 
-- the imminent appointment of a new executive in Australia with responsibility for investor relations, business development and commercialization opportunities in Australia, United Kingdom, Europe and Asia. 

Metal Storm's Chairman, Bill Owens said, "The company has appointed Chuck Vehlow as Chief Executive Officer. Chuck has been the company's Chief Corporate Officer for almost 12 months, and his background is in taking R&D projects through to successful completion of procurement contracts, and experience in leading negotiations of technology licence agreements, and mergers and acquisitions. As a former executive with Boeing and McDonnell-Douglas he held positions in engineering, manufacturing, and distribution. This commercial experience with major US defense industry companies, combined with his defense R&D program experience, makes him well suited to lead the company forward."

"These important structural changes will allow Mike O'Dwyer to work full time on advancing innovation and product development of Metal Storm technology. Mike's role is targeted at moving product into defense industry markets as well as technical support to the US R&D program effort. Metal Storm is pursuing defense R&D programs which lead to improving revenue opportunities, creating new defense weapon systems, enhancing collaboration opportunities with US defense companies and expanding existing relationships."