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General Dynamics Awarded $19 Million Reactive Armor Order

BURLINGTON, Vt. – General Dynamics Armament Systems, a wholly owned subsidiary of General Dynamics (NYSE: GD), has been awarded an $18,929,400 follow-on order from the U.S. Army for the production of 88 Reactive Armor vehicle sets for the Bradley Fighting Vehicle. General Dynamics will produce 44 vehicle sets under a licensing agreement with Rafael Armament Development Authority of Haifa, Israel, which also will produce 44 vehicle sets. The term of the contract is from December 19, 2000, through April 30, 2002. The total award amount for Reactive Armor contracts to date stands at more than $112 million.

"This order represents the continuation of a successful program with the Army and a successful relationship with Rafael Armament," said Linda Hudson, president of General Dynamics Armament Systems. "Because the Bradley Fighting Vehicle is a mainstay for current and future Army heavy forces, we are especially pleased that customer satisfaction remains high."

General Dynamics Reactive Armor Tiles increase crew protection by significantly improving a combat vehicle’s ability to withstand a direct hit from a range of anti-armor munitions. These munitions include shoulder-fired rocket propelled grenades (RPGs), which are in abundant supply in many of today’s regional conflicts.

General Dynamics Armament Systems provides a broad range of armament solutions for the full range of military applications. It designs, develops and produces complete armament and munitions systems for fixed and rotary wing aircraft, land vehicles and sea-based platforms. General Dynamics Armament Systems provides systems management for several programs and, as a full-service, life cycle provider, it is a leader in the demilitarization of outdated munitions.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 44,000 people worldwide and has annualized sales of approximately $10 billion. General Dynamics 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, January 12, 2001
Press Contact: (802) 657-6486