Metal Storm and iRobot Enter Into a Cooperative Memorandum of Understanding

Metal Storm Limited (NASDAQ: MTSX) (ASX: MST) is pleased to announce that Metal Storm Inc has executed a Memorandum of Understanding with iRobot Corp. (NASDAQ: IRBT). The agreement establishes a framework for collaboration and outlines the companies' plans for the joint pursuit of opportunities within the Global Defense and Security sectors.

"Individually, our companies have created a major paradigm shift in how our forces are able to respond to the complexities of the battlefield," said Peter D. Faulkner, senior vice president and general manager for Metal Storm's U.S. Operations. "Together, we stand to shape a revolution by combining robot platforms with a scalable force response and increased mission capability including the defeat of IEDs."

Joe Dyer, president of iRobot Government & Industrial Robots, said, "together with Metal Storm, we aim to develop a superior next-generation weapons platform that ensures absolute safety and always places a human in the decision loop. When you are talking about weaponizing robots, there is no margin for error. We believe combining best-of-breed combat-proven expertise from Metal Storm and iRobot will result in the most precise, safe, and effective solutions for our military customers."

Notes:

Metal Storm's Australian Stock Exchange trading code: MST

Metal Storm's NASDAQ Small Cap ticker symbol: MTSX

About Metal Storm

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.

Safe Harbour

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 US, 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.

Company Contact: Australia Dr Lee Finniear Chief Executive Officer Ph: 61 7 3123 4700 USA Peter Faulkner SVP US Operations Ph: 1 703 248 8218