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U.S. Army Awards General Dynamics $54 Million Tank Ammunition Contract

ST. PETERSBURG, Fla. – General Dynamics Ordnance and Tactical Systems, a business unit of General Dynamics (NYSE: GD), announced today that the U.S. Army Field Support Command at Rock Island, Ill., has awarded it a $54 million modification to an existing multi-year ammunition contract for the production of 120mm M831A1 and M865 Tank Training Ammunition.

These rounds, fired from M1A1/A2 tanks, provide realistic training at a substantially reduced cost over using tactical rounds. This contract will be managed out of the General Dynamics Ordnance and Tactical Systems headquarters located in St. Petersburg, Fla. Work is expected to be completed by September 2008.

General Dynamics Ordnance and Tactical Systems is a world leader in the manufacture of large- and medium-caliber direct and indirect-fire munitions, bomb bodies and Ball Powder® propellant. The company also manufactures precision metal components; provides explosive load, assemble and pack services for a variety of munitions, tactical missile and rocket programs; and designs and produces shaped charge warheads and control actuator systems.

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, January 6, 2005
Press Contact: (703) 876-3199

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