colt mst png agreement, page-11

The Steyr replacement is more a functional issue vice political. It doesn't have the stopping power of its predecessor (7.62mm SLR) and the cumbersome requirement to remove the barrel to clear the weapon or deal with certain stoppages.

WRT the PNG deal - pretty sure MST said they weren't going to manufacture anything in AUS and it is therefore likely that Colt may manufacture the MAULs (I think they said they would outsource manufacure ages ago) and therefore this announcement basically says that Colt will manufatcure the MAULs on behalf of MST and export to PNG. Part of this may also reduce the overheads associated with military exports from the US.

More good news (albeit small) but don't expect too much movement on shareprice with CURRENT contracts/tenders until next year. The US Marine contract may move the price North by end of Q4 2011 however the major money associated with that project will still be years away...

All in all the company's future is firming nicely.