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General Dynamics NMCI Team Combines Strengths of Defense and Commercial IT-Industry Leaders

FALLS CHURCH, Va. -- General Dynamics (NYSE: GD) today announced it has submitted a bid for one of the largest information-technology initiatives in Navy and Marine Corps history. The five-year program, worth an estimated $10 billion, is for the development of a Navy-Marine Corps Intranet (NMCI).

The NMCI program will provide secure voice, video and data networking, desktop computers, associated hardware and software, support services and training as a total service package. When complete, it will tie together more than 450,000 Navy and Marine Corps users at installations primarily in the continental United States and Hawaii, giving them desktop access to a common intranet and multiple databases.

Recognizing that the most effective weapon of the 21st century will be information, the Navy and Marine Corps have already begun the shift from platform-centric warfare to network-centric warfare with the Information Technology for the 21st Century (IT-21) initiative. IT-21 is focused on enhancing warfare capability through improved information access.

The Navy-Marine Corps Intranet will do much the same for business and administrative processes. It will also serve as the tool that will enable the widespread use of all tactical and nontactical applications on a single network, giving the warfighter a link back to all stateside resources.

"There is only one company involved in this competition that has a century-long track record with the Navy and Marines. From nuclear submarines, surface combatants and pier-side networking for the Navy to amphibious assault vehicles and communication systems for the Marines, General Dynamics has been more than a supplier—we’ve been a trusted partner," said Gordon England, executive vice president, General Dynamics.

In support of the Navy and Marine Corps’ vision of network-centric warfare, General Dynamics has invested more than $2 billion in the Information Systems and Technology sector of its business over the last three years, integrating those capabilities across existing platforms. At the tactical level, General Dynamics provides advanced wireless battlefield communications, base-level telecommunications infrastructure and network design for future ships, including the LPD-17, DD-21 and the Virginia Class Attack Submarine.

"The scope of NMCI is enormous, and the solution requires a unique mix of competencies," England added. "We’ve partnered with the best commercial IT companies in the business for this NMCI proposal. This team is uniquely qualified to deliver a mission-focused solution to the Department of the Navy."

Team NEON (Naval Enterprise On-demand intraNet), under the leadership of General Dynamics, includes Compuware, Harris, PricewaterhouseCoopers, Sprint, Unisys Corporation, Wang Government Services and a number of smaller companies.

"In Team NEON, General Dynamics has put together a solid mix of commercial and government experience," said Jim Hogan, president, Wang Government Services, Inc. "While many of the NMCI requirements are consistent with commercial enterprises, this team understands that the Department of Navy is not a typical IT customer. General Dynamics has had a long and successful partnership with the Department of Navy, and we look forward to continuing this partnership."

General Dynamics has selected two world-class seat management companies as members of the team, Unisys Corporation and Wang Government Services. Together they manage over four million seats, or computer users, around the world. The two companies will provide an integrated, common service-delivery system that leverages best practices from both companies.

Unisys, a global electronic business solutions company, has expertise in vertical industry solutions, network services, outsourcing, systems integration and multivendor support, coupled with enterprise-class server and related technologies. The company serves more than 1,500 federal and other government agencies worldwide. Unisys has built an unmatched worldwide support infrastructure with services personnel, help-desk and network-management services. Unisys was awarded the industry’s first Global ISO 9001 certificate for the ability to execute consistent processes on a worldwide basis.

"Unisys is a leader in the federal market at providing continuity of service, rapid transition plans and the ability to quickly deliver new technology," said Nancy R. Friedman, president, Unisys U.S. Federal Government Group. "Working in partnership with General Dynamics and the other members of Team NEON, we will provide the Navy and Marines with best-of-breed information-technology solutions and processes."

Wang Government Services is a leading provider of desktop, network and security solutions to the federal government. With a long history of developing and deploying information-technology solutions in highly secure environments, Wang is currently providing information-assurance services to several major Navy programs. Team NEON will leverage the depth of Wang’s experience in the security arena to deliver a sophisticated, secure intranet solution.

Sprint, a global telecommunications company, brings on-demand communication capability to the Team NEON solution. On-demand bandwidth connectivity for voice, video and data will enable the warfighter afloat or ashore to remain focused on core missions, especially during a crisis when additional stress on the network environment must be effectively supported. Users will have access to the bandwidth they need when they need it. Sprint provides global network services to the federal government and is a full-service provider to the U.S. Navy and Marine Corps in the United States and overseas.

"Sprint has long been the leader in offering high bandwidth telecommunications services to its customers in the federal government and the private sector," said Tony D’Agata, vice president and general manager of Sprint Government Systems Division. "By partnering on Team NEON, we will be able to offer on-demand wide-area transport services, packaged with the security and network-management features required by the Navy and Marine Corps."

Compuware is a $1.7- billion commercial IT company providing world-class software application management for customers ranging from Ford Motor Company to BankOne. Ranked as the fifth largest independent software developer in the world, Compuware brings over 25 years of experience to Team NEON in software development and application services.

PricewaterhouseCoopers (PwC) is the global leader in vendor-independent E-Business consulting. PwC is the leader in IT-21 implementation and knowledge management for the Navy and won the DoD E-Business Partner of the Year Award in 1998. The company brings extensive, proven resources and processes to Team NEON that will be critical to reducing risk and ensuring successful program execution.

Harris Corporation is a leading producer of systems, applications and integrated networks for the U.S. Government. The company is a Top 10 Federal Information Technology Integrator. Harris Telecommunications Services also supports multinational peacekeeping forces and humanitarian relief organizations in more than 50 locations around the world with voice, video, fax and data telecommunications. Harris brings its expertise in wireless, satellite communications and Total Cost of Ownership Modeling to Team NEON.

Small business team members are: Noesis, small business lead and program management support; Network Designs, providing network engineering and design; OCI and Teach.com, training curriculum development; TWD & Associates, program management and transition site support; SETA, transition site support; and Burke Consortium, Inc., technical services and site representation.

The NMCI contract is expected to be awarded in the May-June 2000 time frame.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 43,000 people worldwide. 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 14, 2000
Press Contact: (703) 876-3190



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