Metal Storm Provides Information to U.S. Market Regarding Trading Halt

    Business Editors

    ARLINGTON, Va.--(BUSINESS WIRE)--Feb. 4, 2005--Metal Storm Limited (Nasdaq: MTSX and ASX: MST) has requested a trading halt on the Australian Stock Exchange (ASX), pending an announcement that is expected next week. As a result, the Nasdaq Stock Market has also halted trading in the company's securities. Trading will resume once the company has issued the announcement.
    As per the rules of the ASX, companies may elect to halt trading in their shares pending the release of an announcement by the company, when the announcement contains market sensitive information that is considered likely to affect the price of a security.
    According to the ASX rules: "ASX expects and encourages companies to request a trading halt whenever a company is not able to make an immediate announcement, or is concerned that such an announcement may not be sufficient to properly inform the market."
    Further information regarding the ASX listing rules in this context, may be found under "Guidance Note 16" on the ASX website: www.asx.com.au.

    About Metal Storm

    Metal Storm Limited is a defense technology company, employing 60 staff, headquartered in Brisbane, Australia and incorporated in the US, with offices in Washington DC and a defense 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 defense industry to develop a variety of systems utilizing the Metal Storm non-mechanical, electronically fired stacked ammunition system.

    www.metalstorm.com

    Safe Harbor

    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.

--30--MW/ny*

CONTACT: Lippert/Heilshorn & Associates (Investor Contact) Jody Burfening/David Waldman 212-838-3777 dwaldman@lhai.com or (Media Contact) Chenoa Taitt, 212-838-3777 ctaitt@lhai.co

KEYWORD: VIRGINIA AUSTRALIA INTERNATIONAL ASIA PACIFIC INDUSTRY KEYWORD: HARDWARE AEROSPACE/DEFENSE GOVERNMENT SOFTWARE MANUFACTURING SOURCE: Metal Storm

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