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General Dynamics Receives $94.8 Million Contract for Advanced Crew Served Weapon System Development and Demonstration

CHARLOTTE, N.C. – General Dynamics Armament and Technical Products, a business unit of General Dynamics (NYSE: GD), has received a cost-plus-award-fee contract with a total potential value of $94.8 million from the U.S. Army Tank-Automotive and Armament Command for system development and demonstration of the XM307 Advanced Crew Served Weapon (ACSW) system. The award funds development work through December 2007.

The XM307 ACSW 25mm system is a next-generation mounted and dismounted machine gun that provides accurate long-range firepower, including airbursting munitions, in a lightweight system package. The XM307 weapon and family of 25mm ammunition represents a major increase in machine gun effectiveness by extending stand-off range, enabling the defeat of defilade targets, providing day and night capability and reducing combat load. The XM307 ACSW 25mm system is being developed under the direction of the Project Manager Soldier Weapons located at Picatinny Arsenal, New Jersey.

General Dynamics Armament and Technical Products is the lead developer and systems integrator for the XM307 25mm ACSW system. Design and development of the weapon will occur at General Dynamics’ Burlington, Vt., facility. General Dynamics Ordnance and Tactical Systems of St. Petersburg, Fla., is developing the family of 25mm ammunition. Raytheon has responsibility for the design and development of the full-solution fire control.

PM Soldier Weapons, a project office of PEO Soldier (https://PEOSoldier.army.mil), supports soldiers through the development and production of current and future individual and crew served weapon systems, ammunition development and associated target acquisition and fire control products that provide soldiers with decisive overmatch capability by dramatically increasing lethality and range at a lower weight.

Within PM Soldier Weapons, PM Crew Served Weapons is responsible for maintaining and improving crew served weapons including light, medium and heavy machine guns; automatic grenade launchers; sniper systems; and associated fire control and target acquisition products for U.S. soldiers. The organization also develops future weapons systems that enhance reliability and the weapon life cycle, such as XM307 ACSW, XM312 Lightweight .50 Caliber Machine Gun and CROWS.

General Dynamics Armament and Technical Products provides a broad range of system solutions for military and commercial applications. The company designs, develops and produces high-performance armament systems; a full range of advanced composite-based products; biological and chemical detection systems; and mobile shelter systems. More information about General Dynamics Armament and Technical Products can be found on the World Wide Web at www.gdatp.com.

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 - Monday, May 10, 2004
Press Contact: (704) 714-8014



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