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General Dynamics Awarded $6 Million to Design Remotely Operated Variant of XM307 Advanced Crew Served Weapon

CHARLOTTE, N.C. – General Dynamics Armament and Technical Products, a business unit of General Dynamics (NYSE: GD), has received a $6 million contract modification from the U.S. Army Tank-Automotive and Armaments Command (Picatinny Arsenal, N.J.) for the design and development of a remotely operated variant of the XM307 Advanced Crew-Served Weapon (ACSW) system. This award funds work through June 2006, and brings the total cumulative value of the ACSW System Development and Demonstration (SDD) contract to $108 million.

The XM307 is a lightweight, portable grenade machine gun that utilizes 25mm airbursting ammunition. This next-generation replacement for current heavy and grenade machine guns efficiently manages recoil and is highly portable in small soldier units. This contract funds design and development of a Remotely Operated Variant (ROV) of the XM307, which will be used in the Future Combat Systems family of vehicles now in development. The weapon will be integrated into a vehicle-mounted firing station that is remotely controlled by the operator. Cameras and range finders in the firing station will allow the operator to accurately identify and engage targets while remaining safely protected within the vehicle.

General Dynamics Armament and Technical Products will perform system integration and weapon development at its Burlington, Vt., facility. The family of ammunition is being developed by General Dynamics Ordnance and Tactical Systems in Marion, Ill.

General Dynamics Armament and Technical Products, located in Charlotte, N.C., provides a broad range of system solutions for military applications. The company designs, develops and produces high-performance armament systems; a full range of advanced composite-based products; biological and chemical detection systems; and mobile shelter systems. More information about General Dynamics Armament and Technical Products can be found on the World Wide Web at www.gdatp.com.

General Dynamics, headquartered in Falls Church, Va., 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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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, December 5, 2005
Press Contact: (704) 714-8014