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General Dynamics Awarded Service Support Contract by U.S. Army Tank-Automotive and Armaments Command

STERLING HEIGHTS, Mich. -- The U.S. Army Tank-automotive and Armaments Command (TACOM) has awarded General Dynamics Land Systems Customer Service and Support a 13 month, $4.7 million base contract to provide logistics support for the M1A2 tank, M1A2 SEP tank, and Wolverine Heavy Assault Bridge at Fort Hood and other locations.

Under the contract General Dynamics Land Systems will operate a parts warehouse, and provide delivery, repair and technical diagnostic services. The contract has four one-year options extending into 2004, totaling $22.9 million.

The contract, called Team Abrams Partnership, establishes a relationship between TACOM's Heavy Combat Commodity Business Unit, the Army's Program Executive Office Ground Combat and Support Systems, and General Dynamics. The contract enables TACOM to provide cost effective depot support of unique electronic components and to realize improved readiness rates for the tank and heavy assault bridge system.

"This is the first step in a long-term partnership that establishes a streamlined supply chain for faster turnaround of our high dollar, sophisticated electronic and optical parts," said James J. Ruma, Land Systems director of Customer Service and Support. "This program will allow TACOM to evaluate the potential of reducing the cost of handling repair and returns in the supply chain. It's a terrific opportunity for General Dynamics Land Systems Customer Service and Support to provide additional in-the-field support to our U.S. Army customers. Our goal is to exceed our customer's expectations and secure a long-term commitment to logistics support."

General Dynamics Land Systems is a wholly owned subsidiary of General Dynamics (NYSE:GD). 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 - Friday, September 24, 1999
Press Contact: (703) 876-3190