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Bath Iron Works Awarded $27 Million Contract for Destroyer Maintenance, Repair and Upgrades in Pacific Homeports

BATH, Maine – The U.S. Navy on Monday awarded Bath Iron Works, a subsidiary of General Dynamics (NYSE: GD), a $26.6 million modification to a previously awarded contract to perform Post Shakedown Availability (PSA) maintenance, repair and upgrade work for Arleigh Burke-class Aegis destroyers homeported on the West Coast of the United States. Options for two additional PSA assignments are available under the existing contract, which was awarded in February 2004.

PSA work will be performed on USS CHUNG HOON (DDG 93) by the Bath Iron Works-Southwest Marine PSA Team at Southwest’s facilities in Pearl Harbor, Hawaii, and is expected to be completed by April 2005. A PSA for USS MOMSEN (DDG 92) will be performed by a Bath Iron Works-Todd Pacific Shipyards Corporation (NYSE: TOD) PSA Team at Todd’s facilities in Seattle, Wash., and is expected to be completed by July 2005. Work will include engineering and management services; labor and procurement of material for system upgrades and to correct government-responsible deficiencies; performance of specified PSA work items, including tests and post-repair sea trials; and additional tasking to complete emergent repairs.

Dugan Shipway, president of Bath Iron Works, said, “This award reflects the Navy’s confidence in Bath Iron Works’ ability to take our PSA Team wherever they needs us. Two other recent assignments – USS MASON’s (DDG 87) PSA in Norfolk, Va., and USS CHAFEE’s (DDG 90) PSA in Pearl Harbor, Hawaii, which was just completed three weeks ahead of schedule and under budget – are additional examples of the inherent flexibility Bath Iron Works and our teammates bring to the U.S. Navy for maintenance and modernization around the globe.”

Bath Iron Works (Bath, Maine), a leader in surface combatant design and construction, employs 6,500 people. General Dynamics, headquartered in Falls Church, Virginia, employs approximately 69,400 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 - Wednesday, August 18, 2004
Press Contact: (207) 442-2072