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General Dynamics Awarded $78 Million U.S. Army Contract for Small-Caliber Ammunition

ST. PETERSBURG, Fla. – General Dynamics Ordnance and Tactical Systems, a business unit of General Dynamics (NYSE: GD), has been awarded a $77.7 million contract for production of small-caliber ammunition by the U.S. Army Field Support Command, Rock Island, Ill. Work will be performed in St. Petersburg, Fla.

General Dynamics serves as the systems integrator coordinating supply chain management of a consortium of proven small-caliber ammunition producers whose purpose is to respond to the U.S. Defense Department’s immediate and growing demand for small-caliber ammunition.

This delivery order is for the production of more than 80 million 5.56mm, 7.62mm and .50 caliber small-arms cartridges. The cartridges will be used by all U.S. services to replenish stockpiles consumed in training and expended during combat operations. The three calibers of small-arms ammunition can be fired by individual soldier’s weapons or from weapons mounted on the Abrams Tank, Bradley Fighting Vehicle and the HMMWV (High-Mobility Multipurpose Wheeled Vehicle).

Steven Torma, vice president of the small-caliber ammunition program, said, “General Dynamics is very pleased with our continuing success in fulfilling this critical role of providing small-caliber ammunition to the U. S. warfighter and we are committed to providing quality ammunition as the government’s second-source prime contractor.”

General Dynamics Ordnance and Tactical Systems is a world leader in the manufacture of large, medium- and small-caliber direct and indirect-fire munitions, mortar weapons and systems, artillery projectiles, bomb bodies and BALL POWDER® Propellant. The company also manufactures precision metal components; provides explosive load, assemble and pack services for a variety of munitions, tactical missile and rocket programs; and designs and produces shaped charge and penetrator warheads.

General Dynamics, headquartered in Falls Church, Va., employs approximately 81,000 people worldwide and had 2006 revenues of $24.1 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.

February 8, 2007
Contact: Laurie VanBrocklin
Tel: (727) 578-8187
Email: lgvanbrocklin@gd-ots.com

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