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General Dynamics Awarded $37.4 Million Canadian Defense Contract

FALLS CHURCH, Va. – General Dynamics (NYSE:GD) announced today that its Computing Devices Canada business unit, based in Ottawa, Ontario, was awarded a US$37.4 million ($58.6 million Canadian) contract by the Canadian National Defence Ministry for the replacement of the acoustics system for the CP-140 Aurora aircraft and the analysis systems located in four ground stations in British Columbia and Nova Scotia.

The contract, which is a part of the Aurora Incremental Modernization (AIM) Project, will create about 65 jobs during the life of the project, which is expected to be completed in 2004.

The Aurora is Canada’s only long-range maritime surveillance aircraft. Aurora missions include surveillance, drug interdiction, search and rescue, humanitarian support and United Nations operations. The ground-based analysis system is designed to analyze data recorded by the Aurora in order to gain tactical advantage during airborne maritime patrol missions.

"This will ensure the Canadian Forces have a modern acoustic processing system which is interoperable with allied forces, as they convert to similar capabilities," said John Watts, senior vice president of Computing Devices Canada.

Computing Devices Canada is a wholly owned subsidiary of General Dynamics. Established in Ottawa in 1948, Computing Devices is a proud and trusted supplier to Canada’s Armed Forces, its NATO allies and other friendly countries worldwide. Computing Devices also has offices in Calgary and Halifax, as well as Bristol, England.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 46,000 people and anticipates 2001 sales of approximately $11.5 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 - Friday, March 16, 2001
Press Contact: (703) 876-3199