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NASSCO Awarded U.S. Navy Cargo Ship Study Contract

SAN DIEGO, Calif. -- National Steel and Shipbuilding Company (NASSCO) today announced that it had been awarded a $1.5 million study contract for the first phase of the U.S. Navy’s Auxiliary Dry Cargo Carrier T-ADC(X) Program.

The T-ADC(X) is a new class of Dry Cargo Carrier auxiliaries for the U.S. Navy’s Combat Logistics Force and is intended to replace the Navy’s aging Combat Stores Ships and Ammunition Ships, which are nearing the end of their intended service lives.

NASSCO is one of four competing shipyards to be awarded a contract for Phase I of the program. During this phase, each shipyard team will conduct trade-off studies and analyses to design an improved cargo handling system that will require fewer people to operate and maintain over the life of the system.

"NASSCO has been the leading builder of dry cargo auxiliaries and support ships for the U.S. Navy in the past 30 years and we are pleased to participate in the design competition for this innovative new class of combat logistics ships," said Richard Vortmann, President of NASSCO. "NASSCO recently delivered four SUPPLY-Class AOE Fast Combat Support ships for the Navy, and we look forward to bringing that experience to this next generation of replenishment ships."

Phase II of the program will be the Detailed Design and Construction of up to 12 ships. Contract award for Phase II is expected in mid to late 2000.

NASSCO (www.nassco.com), a General Dynamics company, is the only West Coast shipyard capable of building and repairing large ocean-going vessels for the Navy and commercial customers. The shipyard employs approximately 3,500 people.

General Dynamics (NYSE: GD) of Falls Church, Virginia (www.generaldynamics.com) has leading market positions in shipbuilding and marine systems, land and amphibious combat systems, information systems, and business aviation.

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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 31, 1999
Press Contact: (703) 876-3190