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General Dynamics Awarded $257 Million Contract for Light Armored Vehicles

STERLING HEIGHTS, Mich. - General Dynamics Land Systems, a business unit of General Dynamics (NYSE: GD), has received a $128 million increment of a $257 million contract for 130 new eight-wheeled Light Armored Vehicles (LAV-A2) in various configurations for the U.S. Marine Corps. The contract has a total potential value of $307 million if a $50 million option for electric turret drives is exercised.

The LAV-A2 variants are an improved version of the Marines' Light Armored Vehicle series which entered service in the 1980s and continues operational employment today. General Dynamics will deliver armored personnel, anti-tank, command & control, logistic, and mortar variants beginning in July 2007. Work will be performed by existing General Dynamics employees in London, Ontario, Canada; Sterling Heights, Mich.; and Woodbridge, Va. Work is expected to be complete by July 2008.

The Light Armored Vehicle A2 provides the Marine Corps' Light Armored Reconnaissance Battalion a mobile, agile and survivable system for conducting offensive and defensive operations in support of the Marine Air-Ground Task Force. The eight-wheeled amphibious armored vehicle is equipped with an improved suspension, is fitted for enhanced armor protection and features an automatic fire suppression system for crew protection. Power is provided by a Detroit Diesel 6V53T diesel engine developing 275 horsepower coupled to an Allison MT653, 6 speed (5 forward, 1 reverse) automatic transmission. The four rear wheels drive the vehicle on a full-time basis, but eight-wheel drive is selectable.

General Dynamics, headquartered in Falls Church, Va., employs approximately 72,200 people worldwide and had 2005 revenue of $21.2 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 - Thursday, February 2, 2006
Press Contact: (586) 825-4610