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General Dynamics Selected by Portugal for $457 Million Armored Vehicle Program

FALLS CHURCH, Va. – General Dynamics European Land Combat Systems, a business unit of General Dynamics (NYSE: GD), has been selected by the Government of Portugal to enter negotiations for a contract for the production of 260 Pandur II eight-wheeled, all-wheel-drive (8x8) armored combat vehicles. The contract has a potential value of approximately $457 million (€344 million). The program will be managed by Steyr-Daimler-Puch Spezialfahrzeug AG & Co KG, a General Dynamics company, of Vienna, Austria.

Subject to successful negotiations, delivery will begin in 2006. The vehicles will be used by the Portuguese Army and Navy.

H. Michael Malzacher, president of General Dynamics European Land Combat Systems, said, “We are very pleased to have been selected as Portugal’s partner on this important program. The Pandur II family of combat vehicles comprises a cost-effective, versatile, high-performance transportation system that meets demanding force-protection requirements.”

The Pandur II family of medium armored combat vehicles is composed of mission specific variants/configurations, each of which provide different functional capabilities. Design features of the amphibious vehicles are optimized for superior survivability and mobility, and rapid deployment and maintenance. Elements include two steered axles, an independent suspension system, and run-flat tires for advanced mobility; a high level of embedded armor protection, spall liners for the crew compartments, and drivetrain and steering linkages within the hull for superior survivability; and, for fast, easy maintenance, a computer-based interactive maintenance and repair diagnostic system and the ability to make complete powerpack changes in approx. 30 minutes.

General Dynamics European Land Combat Systems is based in Vienna, Austria, and composed of three European land combat systems companies owned by General Dynamics: MOWAG AG, of Kreuzlingen, Switzerland; General Dynamics Santa Barbara Sistemas, of Madrid, Spain; and Steyr-Daimler-Puch Spezialfahrzeug GmbH.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 71,600 people worldwide and anticipates 2004 revenue in excess 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 - Thursday, December 9, 2004
Press Contact: (703) 876-3199

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