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General Dynamics Completes Acquisition of GTE Government Systems for $1.05 Billion

FALLS CHURCH, Va. -- General Dynamics (NYSE: GD) has completed its acquisition of GTE Government Systems Corporation for $1.05 billion in cash. In addition, General Dynamics has named the current leaders of the three Government Systems businesses as unit presidents. The company and GTE (NYSE: GTE) had announced their plans for the transaction on June 22, 1999.

The acquisition, which will be immediately accretive to earnings, gives General Dynamics a leadership position in command, control, communications and intelligence systems; electronic defense systems, communication switching; and information systems for defense, government, and industry in the United States and abroad. The three businesses units are:

* General Dynamics Communication Systems, Taunton, Massachusetts
Jerry DeMuro, President

* General Dynamics Worldwide Telecommunication Systems, Needham Heights, Massachusetts
Mike Chandler, President

* General Dynamics Electronic Systems, Mountain View, California
John Stewart, President

Together, these units have a backlog of $900 million, approximately 6,000 employees, and expect to have 1999 revenues of approximately $1.2 billion. All three are now part of General Dynamics Information Systems and Technology business group, reporting to Executive Vice President Gordon England.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 44,000 people worldwide and has annualized sales of approximately $10 billion. The company 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 - Wednesday, September 1, 1999
Press Contact: (703) 876-3190