STARCHASE ANNOUNCES CONTRACT WITH METAL STORM TO COMMERCIALIZE TAGGING AND TRACKING PURSUIT MANAGEMENT SYSTEM

VIRGINIA BEACH, Va. – May 16, 2006 – StarChase LLC today announced that it has signed a contract with Metal Storm Limited of Brisbane, Australia, to serve as lead systems integrator for commercialization of its tagging and tracking pursuit management technology.

Under the contract, valued at $1.2 million, Metal Storm will provide ballistics design and program management services as lead systems integrator.

StarChase has developed patented technology for tagging a target vehicle with a GPS/GSM tracking device, which will allow law enforcement agencies to track it remotely. The device is designed to reduce the need for dangerous, high-speed pursuits of fleeing vehicles. The prototype StarChase system has completed proof-of-concept testing and will undergo beta testing with the Los Angeles Police Department in the third quarter of 2006, with full rollout in early 2007.

Sean Sawyer, CEO of StarChase, said, “The contract with Metal Storm will help to speed the process of bringing the StarChase technology to market, in response to the overwhelming interest we have received from law enforcement agencies all over the world.”

Under the terms of the contract, the two companies will pursue broader markets for the StarChase technology both domestically and internationally, including extension into a variety of potential military and homeland security applications. The contract also provides for possible marketing, licensing and equity participation options.

Metal Storm’s Chief Operating Officer, Ian Gillespie, said, “This contract with StarChase allows Metal Storm to leverage its technical expertise and integration skills to develop potential, new markets for the company and its technology.”

The StarChase system consists of a vehicle-mounted launching device, which discharges a projectile “tag” containing a miniature GPS receiver, battery and radio transmitter, embedded in an epoxy compound. The tag adheres to the suspect vehicle and transmits its position coordinates to a central location, where it is superimposed over a computer map display. “StarChase offers an affordable, accurate and adaptable solution that permits officers to convert a dangerous, high-speed chase scenario into a more deliberate and controlled interdiction strategy,” said Sawyer.

About StarChase
StarChase LLC (www.starchase.org) is a company specializing in tagging and tracking pursuit management solutions for the law enforcement sector. The privately held company is based in Virginia Beach, Va., and has been in operation since 2001. The StarChase products are patent protected in several countries, including the United States.

About Metal Storm
Metal Storm Limited (www.metalstorm.com) is a multi-national defense technology company engaged in the development of electronically initiated ballistics using its unique “stacked projectile” technology. Headquartered in Brisbane, Australia, with offices in Arlington, Va., Metal Storm is listed on the Australian Stock Exchange (trading code MSX) and on NASDAQ Small Cap (ticker symbol MTSX).