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Navy Announces $492 Million Contract Option to Avondale Alliance for LPD 19, the First of Four Amphibious Ships Planned for Construction at Bath Iron Works

BATH, Maine -- The U.S. Navy announced today that it has exercised a $492 million contract option to the Avondale Alliance for construction of LPD 19, the first of four amphibious ships planned for construction at General Dynamics Bath Iron Works. Funding for LPD 19 and LPD 20 – the program’s third and fourth production ships – was requested in the fiscal year 2000 budget, and fully authorized and appropriated by Congress last year. The value of the contract to Bath Iron Works is approximately $440 million.

The 12 ships of the LPD 17 San Antonio Class will replace 40 amphibious ships scheduled for retirement from service for the U.S. Marine Corps. Bath Iron Works is scheduled to cut the first steel for LPD 19 in January of 2001, with delivery planned for August 2004.

The first two ships in the LPD 17 class will be constructed at Avondale Industries in New Orleans, Louisiana. Avondale serves as prime contractor for a consortium of team members including Bath Iron Works and Raytheon Systems Corporation. Raytheon serves as electronic systems integrator for the alliance.

Bath Iron Works of Bath, Maine, a leader in surface combatant design and construction, employs 7,700 people. It is a subsidiary of General Dynamics (NYSE: GD), headquartered in Falls Church, Virginia. General Dynamics has leading market positions in shipbuilding and marine systems, land and amphibious combat systems, information systems, and business aviation. The company employs 43,000 people worldwide and has annualized sales of approximately $10 billion.

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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, February 15, 2000
Press Contact: (703) 876-3190