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General Dynamics Awarded Low-Rate Production Contract for 120mm M1028 Canister Cartridge

ST. PETERSBURG, Fla. – General Dynamics Ordnance and Tactical Systems, a business unit of General Dynamics (NYSE: GD), announced today that the U.S. Army Tank-Automotive and Armaments Command at Picatinny Arsenal, N.J., has awarded the company a $5.8 million fixed-price contract for Low Rate Initial Production of 3,600 M1028 120mm Anti-Personnel Canister Cartridges. This contract is a follow-on award resulting from successful completion by General Dynamics of Systems Development and Demonstration and Type-Classification for Low Rate Production of this new 120mm tank round.

For the M1028 canister cartridge design, the U.S. Army Armament Research, Development and Engineering Center/General Dynamics team received the Army’s Greatest Inventions Award recognizing its development of “the best technology solution for the soldier.”

The M1028 cartridge, fired from the main cannon of the M1A1/M1A2 Abrams Battle Tank, contains tungsten balls that provide a “shotgun-like effect” from the muzzle of the tank out to several hundred meters and can be used to clear enemy dismounts, break up hasty ambush sites in urban areas, clear defiles, stop infantry attacks and counter-attacks, and support friendly infantry assaults by providing cover-by-fire. When fielded, the M1028 will provide U.S. Army tank units and the Marine Expeditionary Force with quick-response, highly lethal, direct fire capability. General Dynamics Ordnance and Tactical Systems is the M1028 prime contractor and will assemble the projectile at its Red Lion, Penn., facility.

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 - Friday, January 7, 2005
Press Contact: (703) 876-3199

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