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U.S. Army Awards General Dynamics $305 Million for Abrams Improved SEP Reset

December 5, 2006
Contact: Rae Higgins
Tel: (586) 825-4610
Email: higginra@gdls.com

STERLING HEIGHTS, Mich. – The U.S. Army has awarded General Dynamics Land Systems, a business unit of General Dynamics (NYSE: GD), a $305 million contract to reset and upgrade 312 M1A2 Abrams main battle tanks returning from Operation Iraqi Freedom under a new program called Improved Systems Enhancement Package (SEP) Reset.

This contract follows three other Abrams-related contracts awarded to General Dynamics last week whose total value could exceed $800 million if all options are exercised.

The Abrams Improved SEP Reset program applies lessons learned from recent M1A2 Abrams SEP reset efforts and aims to bolster the reliability and durability of tanks emerging from the reset process. The contract includes $27 million of funding for the reset and upgrade of 72 M1A2 SEP Abrams tanks and $278 million for long-lead material needed to reset and upgrade an additional 240 M1A2 SEP Abrams tanks in 2008-2009. The program was initiated with a $46 million long-lead material award in July 2006 for the first 72 tanks.

Work under the program was begun in July 2006 by existing General Dynamics employees in Anniston, Ala.; Tallahassee, Fla.; Lima, Ohio; Sterling Heights, Mich.; and Scranton, Pa. The first 72 vehicles are planned for induction at Anniston Army Depot, Anniston, Ala., in February 2007, with deliveries from the Joint Systems Manufacturing Center, Lima, Ohio, beginning in October 2007. The remaining 240 vehicles are slated for delivery from August 2008 through September 2009.

The M1A2 SEP fully digitized platform is the latest, most technologically advanced Abrams tank. It has the latest command and control system, second-generation thermal sights and improved armor. The Abrams Improved SEP Reset program is the second activity of a partnership formed in February between General Dynamics and the Anniston Army Depot to maintain core skills at both facilities, and to provide continuous improvements and maintenance of both Abrams and Stryker fleets.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 81,100 people worldwide and expects 2006 revenue of approximately $24 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. More information about the company is available online at www.generaldynamics.com.



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