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Liquid Fuel Cell Battery Chargers in Development for General Dynamics' Secure Mobile Phones

Company Extends Marketing Agreement with Medis Technologies After Encouraging Results from Testing with Ruggedized Handhelds

TAUNTON, Mass. – General Dynamics C4 Systems, a business unit of General Dynamics (NYSE: GD), today announced plans to offer military customers a liquid fuel cell powerpack developed by Medis Technologies (NASDAQ: MDTL) as an accessory for its popular Sectéra® Secure Wireless Phone for GSM. The fuel cell powerpack will serve as a battery charger for the phone wherever access to commercial AC power is unavailable or impractical. The use of disposable fuel cells in portable devices will reduce the need to carry extra batteries or charge devices directly from an AC outlet, extending the mission duration of wireless devices used by dismounted U.S. government personnel.

General Dynamics C4 Systems also announced an extension through 2008 of its exclusive agreement with New York-based Medis Technologies to market Medis fuel cell products to the U.S. armed forces and to the Department of Homeland Security. The agreement had been set to expire in Dec. 2006.

General Dynamics has tested fuel cells from Medis Technologies in several rugged devices and found that the fuel cells generated steady power and showed promising results for military-standard environmental tests in areas such as temperature extremes and vibration.

“Warfighters and commanders in isolated areas need untethered devices that can go the distance,” said Chris Marzilli, senior vice president and deputy general manager for General Dynamics. “Our internal testing shows that fuel cell technology is becoming an effective recharging power source and run-time extender for the secure, mobile and rugged devices we make; fuel cell power packs are safe, reliable and easy to operate.”

The stand-alone fuel cell powerpack, designed to charge the Sectéra Secure Wireless Phone for GSM, will operate on a proprietary sodium boro-hydride formula and will be packaged in a modular housing about the size of a pack of cigarettes. The fuel cell powerpack will attach to the phone’s battery charging port through a single cable and can be easily activated by compressing the back cover. The electronics required for power management will be integrated into the cable unit, which will also feature a retractable cord.

The Sectéra Secure Wireless Phone for GSM provides end-to-end high assurance secure voice and data communications for commercial GSM wireless networks operating in the 900/1800/1900 MHz bandwidths worldwide.

A functional, pre-production model of the Medis liquid fuel cell powerpack for the Sectéra® Secure Wireless Phone for GSM will be on display at the upcoming 2005 Network Encryption & Secure Products User Conference and Training, June 1-2, at The Paris in Las Vegas, Nevada. More than 1,000 government and Department of Defense attendees are registered.

General Dynamics C4 Systems is a leading integrator of secure communication and information systems and technology. With more than 9,000 employees worldwide, the company specializes in command and control, communications networking, space systems, computing and information assurance for defense, government and select commercial customers in the United States and abroad.

General Dynamics, headquartered in Falls Church, Virginia, 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 - Tuesday, May 31, 2005
Press Contact: (508) 880-1636

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