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Spanish Army Awards General Dynamics Santa Brbara Sistemas 181 Million Contract for Howitzers

MADRID – General Dynamics Santa Bárbara Sistemas has signed an eight-year, €181 million (US $216.2 million) contract to supply the Spanish Army with a total of 70 155/52 APU SBT howitzers. General Dynamics Santa Bárbara Sistemas is a subsidiary of General Dynamics (NYSE: GD).

The contract includes the acquisition of four of the current 155/52 APU SBT (V07) howitzers, and design, development, production and delivery of 66 units of a new version of the howitzer (named SIAC) with improved mobility and new capabilities, including C2 integration. The contract also includes retrofit of 12 Army APU SBT howitzers from the V06 to the V07 version; 82 towing vehicles and radio communication sets; and integrated logistical support.

Subcontractors on the program include Amper (Madrid, Spain) for communications equipment, and Iveco (Turin, Italy) for vehicles.

The APU SBT is a 155mm, 52 caliber towed/self-propelled howitzer developed by General Dynamics Santa Barbara Sistemas; it provides substantial benefits thanks to a high rate of fire, high survivability, digital navigation and automatic laying system, low maintenance, and a reduced crew requirement. The Spanish Army has four 155/52 howitzers APU SBT (V06) already in service for field artillery and eight APU SBT (V07) howitzers integrated in a Coastal Artillery Group.

General Dynamics Santa Bárbara Sistemas, part of the General Dynamic European Land Combat Systems unit, employs approximately 2,300 people in nine facilities in Spain and Germany. It is the Spanish Army’s main supplier of combat vehicles and ammunition. The company has production contracts for the Spanish Leopard tank and the Pizarro Infantry Fighting, in addition to other systems, and its products are marketed in 47 countries.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 71,900 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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Note to Editors: Currency conversion calculated at the rate of US $1.1947 to €1.

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, October 24, 2005
Press Contact: (703) 876-3199

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