General Dynamics Awarded $267 Million Contract for Egyptian M1A1 Co-production Program

STERLING HEIGHTS, Mich. – The U.S. Army Tank-Automotive and Armaments Command has awarded General Dynamics Land Systems, a business unit of General Dynamics (NYSE: GD), a $267 million modification to a previously awarded contract to produce 125 M1A1 Abrams tank kits for the Egyptian tank co-production program. Deliveries begin in 2005 and will continue through 2008.

In December 2003 the U.S. Army awarded General Dynamics an $8.4 million long-lead material contract to begin work on this increment, which increases the number of Egyptian co-production-built M1A1 tanks to 880 since the program’s inception in 1992.

General Dynamics provides components for kits used in Egyptian M1A1 production.

Work will be performed in Lima, Ohio, Scranton, Pa., Muskegon, Mich., Tallahassee, Fla., Anniston, Ala., and Imperial Valley, Calif., by existing General Dynamics Land Systems employees.

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 - Monday, December 20, 2004
Press Contact: (586) 825-4610