Ball Aerospace Begins Pre-Production for Phalanx ALMTV Camera

May 21, 2008

Ball Aerospace & Technologies Corp. has begun assembly on three qualification test units for the Phalanx All-Light Marine TV (ALMTV) camera program.

Ball Aerospace will build three ALMTV camera systems in 10 months under contract to Raytheon Company , and qualify the design in anticipation of a full-rate camera production phase beginning in 2009.

The all-light-level camera includes a 18:1 visible/near IR zoom lens coupled to a low light Electron Multiplication Charge Coupled Device (EMCCD) sensor and interface control module housed in a ship compatible environmental housing. The ALMTV incorporates more than 35 years of successful implementation from previous naval camera programs including NATO SeaSparrow and MK-20 Gunfire Support Systems. Ball was awarded a $2.2M contract from Raytheon earlier this year to build the camera systems, complete full qualification tests, and develop tooling to support the 2009 production phase. There are currently 575 Phalanx systems fielded worldwide that could incorporate the ALMTV camera upgrade.

"The Phalanx ALMTV program is a perfect fit with Ball's capabilities to develop, produce and support the imaging needs of the Warfighter for the long term," said Jim Oschmann, director of Ball's antenna and video technologies group.

Phalanx is a rapid-fire, computer-controlled radar and gun system that provides ships with a "last line" defense against anti-ship missiles and other close-in-air and surface threats, including helicopters, surface mines, and terrorist aircraft that have penetrated other fleet defenses. Phalanx is currently installed on all classes of U.S. Navy surface combatant ships and on those of 23 allied nations.

Ball Aerospace & Technologies Corp. supports critical missions of important national agencies such as the Department of Defense, NASA, NOAA and other U.S. government and commercial entities. The company develops and manufactures spacecraft, advanced instruments and sensors, components, data exploitation systems and RF solutions for strategic, tactical and scientific applications. For more than 50 years, Ball Aerospace has been responsible for numerous technological and scientific 'firsts' and acts as a technology innovator for the aerospace market.

Ball Corporation is a supplier of high-quality metal and plastic packaging products for beverage, food and household products customers, and of aerospace and other technologies and services, primarily for the U.S. government. Ball Corporation and its subsidiaries employ more than 15,500 people worldwide and reported 2007 sales of $7.4 billion.

Forward-Looking Statements

This release contains "forward-looking" statements concerning future events and financial performance. Words such as "expects," "anticipates," "estimates" and similar expressions are intended to identify forward-looking statements. Such statements are subject to risks and uncertainties which could cause actual results to differ materially from those expressed or implied. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key risks and uncertainties are summarized in filings with the Securities and Exchange Commission, including Exhibit 99.2 in our Form 10-K, which are available at our Web site and at Factors that might affect our packaging segments include fluctuation in product demand and preferences; availability and cost of raw materials, including recent significant increases in resin, steel, aluminum and energy costs, and the ability to pass such increases on to customers; competitive packaging availability, pricing and substitution; changes in climate and weather; crop yields; competitive activity; failure to achieve anticipated productivity improvements or production cost reductions, including our beverage can end project; mandatory deposit or other restrictive packaging laws; changes in major customer or supplier contracts or loss of a major customer or supplier; and changes in foreign exchange rates, tax rates and activities of foreign subsidiaries. Factors that might affect our aerospace segment include: funding, authorization, availability and returns of government and commercial contracts; and delays, extensions and technical uncertainties affecting segment contracts. Factors that might affect the company as a whole include those listed plus: accounting changes; changes in senior management; successful or unsuccessful acquisitions, joint ventures or divestitures; integration of recently acquired businesses; regulatory action or laws including tax, environmental, health and workplace safety, including in respect of chemicals or substances used in raw materials or in the manufacturing process; governmental investigations; technological developments and innovations; goodwill impairment; antitrust, patent and other litigation; strikes; labor cost changes; rates of return projected and earned on assets of the company's defined benefit retirement plans; pension changes; reduced cash flow; interest rates affecting our debt; and changes to unaudited results due to statutory audits or other effects.

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SOURCE: Ball Aerospace & Technologies Corp.

CONTACT: Roz Brown of Ball Aerospace & Technologies Corp.,