General Dynamics Awarded $299 Million For Submarine Work, Materials

GROTON, Conn. – The U.S. Navy has awarded General Dynamics Electric Boat $299 million for nuclear-submarine work and materials. Electric Boat is a wholly owned subsidiary of General Dynamics (NYSE: GD).

Under the terms of a $293 million contract modification, Electric Boat will provide design, engineering, material and logistics support for strategic and attack submarines, and research and development for submarine research vehicles. Electric Boat will also provide planning, scheduling and technical support for submarine maintenance activities. Initially awarded March 3, the contract could be worth more than $1.1 billion over five years if all options are exercised and funded.

Eighty-four percent of the work will be performed at Groton; 3 percent at Bangor, Wash.; 4 percent at Kings Bay, Ga.; 3 percent at Newport, R.I.; and 5 percent at Quonset Point, R.I. Work performed under this contract is expected to be completed by September 2008.

In addition, the U.S. Navy awarded Electric Boat a $5.9 million material order for the purchase of long-lead-time material required to support alterations on USS Michigan (SSBN-727) and USS Florida (SSBN-728). These Trident ballistic-missile submarines are being converted to Trident SSGNs, multimission submarines optimized for tactical strike and special-operations support.

Electric Boat is currently converting the first four Trident submarines to SSGNs: the USS Ohio (SSBN-726) and the USS Michigan (SSBN-727) at Puget Sound Naval Shipyard in Washington; and the USS Florida (SSBN-728) and USS Georgia (SSBN-729) at Norfolk Naval Shipyard in Virginia.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 68,400 people worldwide and anticipates 2004 revenue of $19 billion. The company is a market leader in mission-critical information systems and technologies; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine 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 - Thursday, May 6, 2004
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