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General Dynamics Common Hardware/Software II Contract Reaches $1 Billion Mark

Contract keeps computing technology affordable for the U.S. Army and other services.

TAUNTON, Mass – General Dynamics C4 Systems, a business unit of General Dynamics (NYSE: GD), has been awarded a $22 million contract modification from the National Guard for ruggedized, secure fax machines, increasing the value of orders executed on the company’s Common Hardware/Software II contract (CHS-2) to more than $1 billion. The CHS-2 contract, awarded in 1995, provides the U.S. Army and other services with access to affordable common hardware and software items while keeping pace with commercial computer advances. The Army Communications Electronics Command is the contracting authority.

The original CHS-2 contract primarily supplied Army programs, but the contract’s purchasing efficiencies and economies of scale enabled General Dynamics to offer very competitive pricing, resulting in orders from the Marine Corps and Air Force as well. In June 2003, General Dynamics was awarded the Common Hardware/Software III (CHS-3) contract, a competitively awarded follow-on program to CHS-2, which has a maximum potential value of $2 billion.

“These contracts are remarkable success stories for our military customers because they can get the most current computing products ruggedized for the tactical environment at a commercially competitive price,” said Chris Marzilli, senior vice president of General Dynamics C4 Systems.

The CHS programs provide tactical computer users from all military services with the most-current commercial and ruggedized workstations available, plus associated hardware and software. Orders have also included local area networks (LAN), server platforms, communication gateways, routers, laptops, faxes and ancillary equipment. As the prime contractor, General Dynamics also provides extensive system integration and product-testing services, as well as long-term warranty, end user support and program management.

General Dynamics C4 Systems is a leading integrator of secure communication and information systems and technology. With more than 9,000 employees worldwide, the company specializes in command and control, communications networking, computing and information assurance for defense, government and select commercial customers in the United States and abroad.

General Dynamics, headquartered in Falls Church, Va., employs approximately 70,000 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, September 29, 2004
Press Contact: (480) 441-2885