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U.S. Navy Awards General Dynamics $21.5 Million Contract Modification for Submarine System Modernization

ARLINGTON, Va. – The U. S. Navy awarded General Dynamics Advanced Information Systems, a business unit of General Dynamics (NYSE: GD), a $21.5 million contract modification to continue system integration and development of enhanced capabilities for the Acoustic Rapid Commercial-off-the-shelf Insertion (A-RCI) program.

The A-RCI program enables the Navy to significantly upgrade legacy submarine combat capability through annual software enhancements and periodic hardware upgrades at significant cost savings. This program has been a major factor in establishing open architecture requirements for the Navy and these capabilities and systems are now on nearly all Navy submarines and many surface ships.

The initial system developed under the A-RCI program was the Multi-Purpose Processor (MPP), which replaced the signal processing and displays of the AN/BQQ-5 Sonar system on SSN 688 and 688I nuclear attack submarines. The greatly increased performance, significantly lower cost, and open architecture features of the MPP-based systems led the Navy to extend the replacements to the sonar processing and display systems being developed for Virginia Class and Trident submarines with MPP systems. Subsequent deliveries have continued to upgrade and greatly improve sonar capabilities and add advanced tactical decision aids and stealth monitoring capabilities.

Work under this contract will be performed in Fairfax, Va., and Anaheim Calif., and includes systems engineering, architecture design, software engineering, development, integration, and testing. The overall contract runs through Dec. 2008 and has a total potential value of $250 million, including the modification announced today.

The contract modification was awarded in the name of Digital System Resources Inc. That company was acquired by General Dynamics and became part of General Dynamics Advanced Information Systems in Sept. 2003.

Headquartered in Arlington, Va., General Dynamics Advanced Information Systems provides transformational mission solutions in command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) to customers in the defense, intelligence, homeland security and homeland defense communities. More information can be found at www.gd-ais.com.

General Dynamics, headquartered in Falls Church, Va., 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, July 6, 2004
Press Contact: (703) 271-7452