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U.S. Army TACOM Awards General Dynamics Contract for 100 M1A1 Hardware Kits for Egypt

STERLING HEIGHTS, Mich. - The U.S. Army Tank-automotive and Armaments Command has awarded General Dynamics Land Systems a $156 million firm fixed price contract for 100 M1A1 Abrams tank hardware kits for the Egyptian tank co-production program.

Delivery of the tank hardware kits to the Egyptian Tank Plant in Cairo, Egypt, where the tanks will be assembled, begins January 2001 and continues through the fourth quarter of 2003. There are approximately 2,500 line items in each hardware kit being shipped to Egypt.

Every Land Systems production facility will contribute to the content of each kit. Among the major components to be delivered, the General Dynamics operated Lima Army Tank Plant (LATP) in Lima, Ohio, will provide the turret structure and armor packs (39 percent). The Muskegon Plant in Muskegon, Michigan, will manufacture the commander's weapon station and hatches (12 percent). The Scranton Plant in Eynon, Pennsylvania, will produce major suspension components (24 percent). The Tallahassee Plant in Tallahassee, Florida, will make the electronic boxes (5 percent), and the Imperial Valley Operations (IVO) in Imperial Valley, California, will assemble the harnesses (17 percent). The Anniston Army Depot in Anniston, Alabama, will provide the gunners primary sight (3 percent). IVO and LATP will also do the final packaging and crating of all components to be shipped to the Egyptian Tank Plant.

The work will be performed with the existing manpower at all locations.

General Dynamics Land Systems is a wholly owned subsidiary of General Dynamics (NYSE: GD). General Dynamics, headquartered in Falls Church, Virginia, employs approximately 43,000 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 - Monday, February 7, 2000
Press Contact: (703) 876-3190