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U.S. Navy Awards $56 Million for Advance Procurement of Materials for Amphibious Ship to be Built at Bath Iron Works

BATH, Maine – The U.S. Navy awarded the Avondale Alliance and Bath Iron Works, a General Dynamics Company, $113 million for advance procurement of long lead time materials for ships five and six -- LPD 21 and LPD 22 -- in the San Antonio-class LPD 17 program. Bath Iron Works will receive $56 million of the contract to build LPD 22, the second ship in the class planned for construction at Bath Iron Works in Bath, Maine.

Long lead materials consist of items such as the main engines, generators, controllable pitch propellers, and reduction gears. Advance procurement is necessary for these critical long lead items in order to exercise vendor option rates.

To date, contracts for four ships have been awarded in the 12-ship program with the eight additional ships planned in the next four to five years. Value of the four ships awarded to date is in excess of $2 billion. Eight of the ships will be built at Avondale in New Orleans, while four are planned for production at Bath Iron Works.

The LPD 17 amphibious transport dock ships are designed to be 684 feet long and 105 feet wide and will replace functions of the LPD 4, LSD 36, LKA 113, and LDT 1179 classes of amphibious ships. The ship’s mission is to embark, transport, and land elements of a landing force in an assault by helicopters, landing craft, and amphibious vehicles to conduct an amphibious warfare mission.

Bath Iron Works of Bath, Maine, a leader in surface combatant design and construction, employs 7,000 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 47,000 people and anticipates 2001 sales of approximately $11.5 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 - Friday, July 20, 2001
Press Contact: (207) 442-1149