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General Dynamics Awarded $11 Million Modification for Submarine Multi-Purpose Processor Production

ARLINGTON, Va. – The U.S. Navy’s Naval Sea Systems Command has awarded General Dynamics Advanced Information Systems, a business unit of General Dynamics (NYSE: GD), a $10.7 million contract modification for production of equipment in support of the Multi-Purpose Processor (MPP) program for submarines.

This contract provides for production of Multi-Purpose Processor systems, which enable submarines to process data collected by towed and hull sensor arrays. The processed data provides valuable information regarding the location of other nearby vessels and increases survivability and lethality of the submarine. They are installed on all submarines in the U.S. Navy's inventory and are a major subsystem under the Acoustic-Rapid Commercial Off-The-Shelf Insertion (A-RCI) program. This production award follows a Feb. 4 contract modification for $44.6 million to provide engineering and technical services in support of the system.

Work will be performed in Fairfax, Va., and Pittsfield, Mass., and is expected to be completed by March 2006.

The contract modification also includes pre-negotiated pricing options for a further three years, permitting the U.S. Navy to select annual requirements and exercise options.

This award modifies a contract originally awarded in August 2004 to Digital Systems Resources, Inc., which was acquired by General Dynamics and became part of General Dynamics Advanced Information Systems in Sept. 2003. Including this modification, the cumulative value of the contract is $99.3 million.

General Dynamics Advanced Information Systems, headquartered in Arlington, Va., is a leading provider of transformational mission solutions in command, control, communications, and computers, intelligence, surveillance and reconnaissance (C4ISR). Customers include those in the defense, intelligence, homeland security and homeland defense communities. More information is available on the Internet at www.gd-ais.com.

General Dynamics, headquartered in Falls Church, Va., employs approximately 70,200 people worldwide and had 2004 revenue of $19.2 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, February 23, 2005
Press Contact: (703) 271-7452