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Metal Storm Conducts Demonstration of Robot- Mounted Weapon System in U.S.

BRISBANE, AUSTRALIA - 20 May 2004 – Metal Storm Limited (ASX trading code: MST and NASDAQ Small Cap ticker symbol MTSX)

International ballistics company Metal Storm Limited has demonstrated the live firing of its electronic ballistics system from a robotic ground vehicle to key defence personnel in the US.

The demonstration included the remotely controlled firing of stacked pyrotechnic and inert 40mm rounds from a four-barrel pod with recoiling system mounted on a "Talon" robot manufactured by Foster-Miller Inc. (Foster-Miller) and supplied and operated by the US Army's Picatinny Arsenal facility.

Metal Storm personnel worked closely with US Department of Defense representatives on the Warren Grove Gunnery Range in New Jersey, USA to conduct the demonstrations which were attended by defence personnel including the US Army Research Development Engineering Command (ARDEC), and a number of industry representatives including several from Telecordia - an associate company of Science Applications International Corporation (SAIC), and General Dynamics Corporation.

Metal Storm's Director of Scientific Innovation, Mr Mike O'Dwyer said the firing represented a significant demonstration of the capability and versatility of the generic Metal Storm 40mm Ballistics System, combining it with an important piece of existing military equipment with potential to greatly enhance its operational capability.

"Our electronic ballistics system has no mechanical parts and provides a lightweight, compact weapon which carries a payload of 16 shots, 10 more than the existing alternative. The system is capable of variable rates of fire, selected and fired by remote control. We intend to undertake further development of the Metal Storm system with a view to increasing the payload to 48 shots" said Mr O'Dwyer.

"The Metal Storm robotic weapon system can punch above its weight, offering real potential for robotic vehicles to undertake more offensive roles on operations."

"Because the system is able to deliver a payload disproportionate to its size and weight, it is potentially suitable for a range of different applications that could significantly increase the operational capability for field commanders," said Mr O'Dwyer.

The Talon robot has been developed by Foster-Miller to operate in rugged terrain up to 1.6 kilometres from its base, and is currently in service in Afghanistan and Iraq.

It is an all-weather, all-terrain, tracked robot with a day/night capability, and can be configured for many different types of missions. It provides a potential first strike option that does not risk soldiers' lives.

Foster-Miller Inc. President Dr William Ribich said the versatility and capability of the Metal Storm weapon system are highly impressive.

"The combination of Metal Storm and Foster-Miller technologies provides significant potential to deliver new robotic capabilities that meet our military customers' complex requirements," Dr Ribich said.

"We anticipate that further development would allow the Talon/Metal Storm system to provide intense firepower at various ranges, using either lethal or less-than-lethal munitions.

"This capability would make it ideal for tasks such as access denial, facility protection and crowd control missions," he said.

Video clips of the Metal Storm / Talon demonstration will shortly be available for viewing on the Metal Storm website: www.metalstorm.com

About Metal Storm

Metal Storm Limited is a defence technology company, employing 60 staff, headquartered in Brisbane, Australia and incorporated in the US, with offices in Washington DC and a defence engineering capability located in Seattle, operating as ProCam Machine LLC. The Company has invented 100% electronic ballistics technology that has no known conventional equivalent. Metal Storm is working with government agencies and departments, and the defence industry to develop a variety of systems utilising the Metal Storm non-mechanical, electronically fired stacked ammunition system.

About Foster-Miller Inc.

Foster-Miller, Inc., is an independent, privately held engineering, development and manufacturing company located in suburban Boston, MA, with additional offices in Albany, NY and Washington, DC. The firm was founded almost 50 years ago by three graduates of MIT who believed there was a need for a company that could solve clients' difficult technical problems through first-class analysis and design. The company maintains a staff of more than 350 mechanical, electrical, thermal, chemical, nuclear, aerospace, software and materials engineers as well as metallurgists, physicists, mathematicians, chemists, biologists and support staff working in the areas of robotics, advanced materials, custom machinery, power systems, biotechnology, transportation and aerospace. Visit www.foster-miller.com for further details.

About Warren Grove Gunnery Range

Warren Grove Gunnery Range is located in New Jersey with a mission to provide a quality combat training environment for all military air and ground combat forces. Approximately 3,000 sorties from fighter aircraft and helicopters are fired onto the range annually. The range is used for military exercises and its customers include the US Airforce, Navy SEALS, Army Special Forces the US Navy and Marine Corps.

www.globalsecurity.org/military/facility/warren-grove-r.htm

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Certain statements made herein that use the words "estimate", "project", "intend", "expect", "believe" and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties which could cause the actual results, performance or achievements of the company to be materially different from those which may be expressed or implied by such statements, including, among others, risks or uncertainties associated with the development of the company's technology, the ability of the company to meet its financial requirements, the ability of the company to protect its proprietary technology, potential limitations on the company's technology, the market for the company's products, government regulation in Australia and the U.S., changes in tax and other laws, changes in competition and the loss of key personnel. For additional information regarding these and other risks and uncertainties associated with the company's business, reference is made to the company's reports filed from time to time with the Securities and Exchange Commission, including the company's Form 20-F.


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