General Dynamics to Support NSA's Telephony and Networking Needs Under $2B 'Groundbreaker' Contract

FALLS CHURCH, Va. – General Dynamics (NYSE: GD), as a subcontractor to the Computer Sciences Corporation-led joint venture called the Eagle Alliance, will provide telephony and network services to the National Security Agency (NSA) through a program called Project GROUNDBREAKER.

NSA awarded a contract for the program on July 31; the contract has a potential duration of 10 years and potential value of more than $2 billion.

General Dynamics’ role in the program has the potential value of $200 million or more, and will involve two business units: General Dynamics Worldwide Telecommunication Systems (Needham, Mass.), and General Dynamics Advanced Technology Systems (Greensboro, NC).

Under the program, the Eagle Alliance will provide IT services in the areas of telephony and network services, distributed computing services, and enterprise management at NSA headquarters and surrounding offices.

General Dynamics will be responsible for telephony services and will also provide support for network design, engineering, modernization, operations and maintenance tasks. Telephony services will include providing switches, handsets, cell phones and pagers, as well as support of the Land Mobile Radio (LMR) infrastructure, and the agency’s cable-plant infrastructure.

The GROUNDBREAKER contract reinforces General Dynamics positioning as the leading telecommunications-infrastructure partner for the U.S. Department of Defense. Other DoD telecommunications programs include the Navy-Marine Corps Intranet OCONUS contract, awarded in May 2001, for the design, installation, integration and testing of internal and external telecommunications infrastructure to support all of the communications needs -- voice, video and data -- of the 35,000 land-based Navy personnel outside the United States. The company is also renovating the information technology and telecommunications infrastructure at the Pentagon, one of the world's largest office buildings.

Headquartered in Falls Church, Virginia, General Dynamics employs approximately 49,000 people and anticipates 2001 sales of approximately $11.5 billion. The company has leading market positions in shipbuilding and marine systems, land and amphibious combat systems, information systems, and business aviation.

###

Any "forward-looking statements" contained in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

General Dynamics Corporation (ticker: GD, exchange: NYSE)
News Release - Tuesday, August 7, 2001
Press Contact: (703)876-3199