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General Dynamics Withdraws Bid for Newport News Shipbuilding

FALLS CHURCH, Va. -- In a statement issued today, the Department of Defense said that it would not support the proposal by General Dynamics (NYSE: GD) to acquire Newport News Shipbuilding, Inc. (NYSE: NNS). General Dynamics had made the bid in a letter to Newport News dated February 10, 1999.

"General Dynamics believes that its proposed acquisition of Newport News Shipbuilding would have meant significant savings for the U.S. Navy, enhanced value for the shareholders of both companies, and still preserved jobs," said Nicholas D. Chabraja, General Dynamics chairman and chief executive officer. "While we find the Department of Defense’s decision disappointing, we respect it and have withdrawn our offer. General Dynamics continues to have the strongest balance sheet in the industry, and we will pursue other acquisition opportunities."

General Dynamics, headquartered in Falls Church, Virginia, supplies sophisticated defense systems to the United States and its allies. The company employs 31,000 people and had 1998 revenues of $5 billion.

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 - Wednesday, April 14, 1999
Press Contact: (703) 876-3190

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