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NASSCO Awarded Contract for USS Mobile Bay (CG-53) Extended Drydocking and Repair

SAN DIEGO, Calif. – National Steel and Shipbuilding Company (NASSCO), a wholly owned subsidiary of General Dynamics, (NYSE: GD), today announced that it has received a contract valued at up to $23 million for the eight-month extended drydocking and repair availability of USS Mobile Bay (CG-53). Mobile Bay, an Aegis guided missile cruiser equipped with vertical launch missile systems, is changing homeports from Yokosuka, Japan, to San Diego, California.

On Friday, the Navy awarded NASSCO a $1 million contract to begin the advance planning for the Mobile Bay maintenance, repair and alteration work package. Actual work on the ship will begin in November, is scheduled to be completed by June 2001, and is expected to reach a value of $23 million. Major work items include the drydocking, plus alterations to convert the ship to all-electric auxiliaries and to install the Navy "Smart Ship" electronic control and automation systems.

"NASSCO is one of the leading repair yards on the West Coast, and has completed highly successful Aegis cruiser overhauls in the past," said Richard Vortmann, president of NASSCO. "Since 1980, we have completed over 200 ship repair availabilities for the Navy in San Diego, across all classes of surface ships. With the extensive ship repair infrastructure we have developed, private industry can now repair all San Diego-based ships in their homeport, including carriers and submarines, and that’s a real advantage to sailors and their families."

NASSCO is the only West Coast shipyard capable of building and repairing large ocean-going vessels for the Navy and commercial customers. The shipyard employs approximately 3,000 people.

General Dynamics of Falls Church, Virginia, has leading market positions in shipbuilding and marine systems, land and amphibious combat systems, information systems, and business aviation. The corporation employs approximately 44,000 people 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 - Wednesday, September 6, 2000
Press contact: (619) 544-7708