• Military Menu                       

• Introduction
• Systems
• Facilities
• Agencies
• Industry
• Operations
• Countries
• Hot Documents
• News
• Reports
• Policy
• Budget
• Congress
• Links

• WMD
• Intelligence
• Homeland Security
• Space

General Dynamics to Purchase Digital System Resources, Inc. (DSR)

FALLS CHURCH, Va. – General Dynamics (NYSE: GD) has entered into a definitive agreement to acquire privately-owned Digital System Resources, Inc. (DSR) of Fairfax, Va. The agreement has been approved by the boards of directors of both companies. The proposed transaction is subject to normal regulatory approvals and is expected to close within 60 days; terms were not disclosed.

DSR, a provider of surveillance and combat systems for submarines and surface ships, has 450 employees. It will become part of General Dynamics Advanced Information Systems, a unit of the company’s Information Systems and Technology group. DSR, which was established in 1982, anticipates revenues of approximately $125 million in 2003. The acquisition will be immediately accretive to General Dynamics’ earnings.

“This is an extremely capable and well-managed company, and a great complementary fit,” said Kenneth C. Dahlberg, Executive Vice President-General Dynamics Information Systems and Technology group. “It has an important niche in electronic warfare and acoustic signal processing technologies for the U.S. Navy. We believe that DSR and its employees will benefit from the resources and broader focus of a larger organization.”

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 57,000 people worldwide and anticipates 2003 revenues of $15 billion. The company has leading market positions in mission-critical information systems and technologies, land and amphibious combat systems, shipbuilding and marine systems, and business aviation.

Any forward-looking statements in this press release are based on management’s expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "anticipates," "scheduled," "estimates," variations of these words and similar expressions are intended to identify forward-looking statements which include but are not limited to projections of revenues, earnings, segment performance, aircraft production and deliveries, cash flows, contract awards and aircraft backlog stability. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors, including, without limitation: the company’s successful execution of internal performance plans; performance issues with key suppliers and subcontractors; the status or outcome of legal and/or regulatory proceedings; the status or outcome of labor negotiations; changing customer demand or preferences for business aircraft; changes from the company's historical experience with respect to its customers' exercise of business aircraft options; changing priorities or reductions in the U.S. government defense budget; termination of government contracts due to unilateral government action; and the timing and occurrence (or non-occurrence) of circumstances beyond the company’s control.

# # #

General Dynamics Corporation (ticker: GD, exchange: NYSE)
News Release -Wednesday, July 30, 2003
Press Contact: (703) 876-3190