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General Dynamics Awarded $30 Million M1A2 SEP Retrofit Contract

STERLING HEIGHTS, Mich. – The U.S. Army Tank-automotive and Armaments Command has awarded General Dynamics Land Systems a $30.4 million contract to begin upgrading M1A2 Abram tanks to the M1A2 SEP configuration.

The contract’s base value is $17.1 million for the upgrade of 14 M1A2 tanks with an option to upgrade an additional 11 M1A2’s worth $13.3 million.

The first delivery is scheduled for December 2002. Work will be performed by the existing workforces at the Lima Army Tank Plant in Lima, Ohio (80%); and in Tallahassee, Fla.(10%); Anniston, Ala.(4%); Scranton, Pa.(3%); Imperial Valley, Ca.(1%); Sterling Heights, Mi.(1%); and Muskegon, Mi.(1%).

"This is a significant contract that kicks off the M1A2 retrofit effort," said Joseph Mayton, Abrams tank program director for General Dynamics Land Systems. "It picks up where the 307 multiyear contract leaves off."

The M1A2 SEP upgrade improves the electronics, command and control, and fightability of the M1A2 tank.

Improvements include an under-armor Auxiliary Power Unit (APU), thermal management system, second generation Forward Looking Infrared (FLIR) thermal sight, armor improvements and upgraded electronics which accommodate the U.S. Army’s Command and Control System (FBCB2).

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 49,000 people worldwide and anticipates 2001 sales of approximately $12 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, September 25, 2001
Press Contact: (810) 825-7980



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