http://www.asx.com.au/asxpdf/20060426/pdf/3wg7j2n8mz7ym.pdf note...

http://www.asx.com.au/asxpdf/20060426/pdf/3wg7j2n8mz7ym.pdf

note the date APRIL 2006
--------------------------

26 April 2006
The Manager
Company Announcements Office
Australian Stock Exchange Limited
Exchange Centre
20 Bridge Street
Sydney NSW 2000
Dear Sir,
Metal Storm Limited advises that it has received the following communication from Mr & Mrs J.M.
O’Dwyer in relation to the intended sale of a portion of their holdings in the company
.
"As the major shareholder in Metal Storm (holding 38% incl associates) Rhonda and I announced
in Feb 2005 that it was our intention to sell half of our holding, off market, as company
supportive opportunities became available.
Since then we have sold no shares at all because no institutional or significant potential buyer has
satisfied us that they are likely to be long term investors. It remains our intention to continue to
deal with any potential sale on that basis. We will not be selling where, in our view, that is
detrimental to Metal Storm.
We should advise also that we intend to take up our SPP entitlements.
Sincerely,
Michael and Rhonda O’Dwyer.”
Yours faithfully,
James D MacDonald
Company Secretary