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General Dynamics Awarded $32 Million Sole-Source Contract for Mobile Telecommunication Switches

TAUNTON, Mass. – General Dynamics Communications Systems, a business unit of General Dynamics (NYSE: GD), was recently awarded a sole-source contract to provide Army tactical commanders with a compact, lightweight, highly mobile telephone switching system. The initial order for 27 systems is worth $32 million. The contract has a potential value of $106 million if options for up to 58 more systems are exercised. The U.S. Army Communications Electronics Command is the contracting authority.

The General Dynamics-designed Single Shelter Switch system will replace the Army's existing inventory of AN/TTC-39A and AN/TTC-39D switching systems. It also may be used as a replacement for the Large Extension Node systems fielded as a part of the Mobile Subscriber Equipment (MSE) program.

General Dynamics collaborates with Laguna Industries Inc., of Mesita, New Mexico, on the design and production of tactical communications systems such as the Single Shelter Switch for the Army. Laguna Industries provides various racks, cables and related sub-assemblies, while General Dynamics contributes the switching equipment products.

John Martin, vice president of Communications and International Systems for General Dynamics in Taunton, said, "This contract is a direct result of our successful teaming arrangement with Laguna Industries on the previous Single Shelter Switch development and production contract. We view our teaming as very beneficial to both companies, and expect it to remain so on this follow-on contract."

General Dynamics Communication Systems is headquartered in Taunton, Mass. The unit provides secure communication and information solutions that integrate custom-developed and commercial off-the-shelf products for the military and commercial markets. It designs, integrates, and supports strategic and tactical battlefield communication systems, worldwide, and provides environmentally hardened and special packaging of computer equipment and peripherals for both commercial and military applications.

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 business aviation, information systems, shipbuilding and marine systems, and land and amphibious combat systems.

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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, April 10, 2001
Press Contact: (508) 880-1636