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General Dynamics To Lead Small-Caliber Ammunition Consortium

ST. PETERSBURG, Fla. – General Dynamics Ordnance and Tactical Systems, a business unit of General Dynamics (NYSE: GD), has formed a multinational consortium of proven small-caliber ammunition producers whose purpose is to respond to the U.S. Defense Department’s immediate and growing demand for small-caliber ammunition.

In response to a recent U.S. Army market survey for a Small-Caliber Ammunition Systems Integrator, General Dynamics has partnered with the Winchester Division of the Olin Corporation to assemble a team of noteworthy North American and international producers to offer a full-service solution to meet all of the current and envisioned demand for small-caliber ammunition. In addition to General Dynamics and Winchester, the team consists of Israel Military Industries Ltd. (IMI) and SNC Technologies, Inc., of Canada.

Michael S. Wilson, president of General Dynamics Ordnance and Tactical Systems, said, “All of our teammates are currently producing small-caliber ammunition for U.S. armed forces and possess the collective capacity to meet the required demand, while providing the U.S. Army with a very attractive value alternative. We applaud the Army’s proactive measures, being forged by the Program Manager-Maneuver Ammunition Systems (PM-MAS), to seek out and exploit available capacity within North America and allied nations to respond to the pressing needs of U.S. fighting forces.”

General Dynamics will serve as the systems integrator responsible for supply chain management, with Winchester serving as a principal supplier of all calibers of ammunition, including 5.56mm, 7.62mm and Cal. 50. IMI currently produces ammunition to U.S. military specifications for each of the calibers being sought and will be relied upon to be a significant production partner on the team. SNC will also be a critical provider of select ammunition across all calibers being sought.

“General Dynamics is in discussion with several other producers, including General Dynamics Santa Bárbara Sistemas, Madrid, Spain to further enhance the consortium’s ability to provide a 100 percent solution. Our goal is to ensure maximum supply support for the U.S. armed forces in their war against terror, ” Wilson said.

General Dynamics Ordnance and Tactical Systems is a world leader in the manufacture of large- and medium-caliber ammunition, bomb bodies and Ball Powder® propellant. The company also manufactures precision metal components; provides explosive load, assemble and pack services for a variety of tactical missile and rocket programs; and designs and produces shaped charge warheads and control actuator systems.

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 - Tuesday, May 25, 2004
Press Contact: (727) 578-8144

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