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General Dynamics Awarded $56 Million Contract for Repair of Abrams Tanks Returning from Iraq

STERLING HEIGHTS, Mich. – The U.S. Army TACOM Lifecycle Management Command has awarded General Dynamics Land Systems, a business unit of General Dynamics (NYSE: GD), a $25.2 million delivery order as part of a $56.3 million contract to service M1A2 System Enhancement Package (SEP) tanks returning from Operation Iraqi Freedom.

Through the reset program, General Dynamics will service, repair and modify vehicles returning from Iraq to a pre-combat condition and reissue them to Army units prior to their next deployments.

Work is slated to begin in June 2005 and will be performed in Lima, Ohio, Eynon, Pa., and Sterling Heights, Mich., by existing General Dynamics employees. Work is expected to be complete and vehicles will be delivered to the 4th Infantry and the 1st Cavalry Divisions, Fort Hood, Texas, by the end of 2005.

The M1A2 SEP is the latest, most technologically advanced Abrams tank. A fully digital platform, it has the latest command and control system, second-generation thermal sights and improved armor. It integrates new information technologies to improve soldier warfighting capability with enhanced digital command and control features like color maps and displays, high-density computer memory, microprocessing speed and communications.

General Dynamics, headquartered in Falls Church, Va., employs approximately 70,100 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 - Monday, May 9, 2005
Press Contact: (586) 825-4610



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