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U.S. Marine Corps Awards General Dynamics $144 Million Expeditionary Fighting Vehicle Contract

STERLING HEIGHTS, Mich – The U.S. Marine Corps Systems Command in Quantico, Va., has awarded General Dynamics Land Systems, a business unit of General Dynamics (NYSE: GD), a $144 million contract modification for the continuation of the System Development and Demonstration (SDD) phase of the Expeditionary Fighting Vehicle (EFV) program. The contract funds the Design for Reliability (DFR) effort through September 2008.

“This contract validates the efforts of the joint General Dynamics-U.S. Marine Corps Expeditionary Fighting Vehicle program office to achieve a reliable system that will allow the Marines to fulfill their expeditionary warfare mission well into the 21st century,” said Robert Turner, vice president, Amphibious Systems, General Dynamics Land Systems. “We have solid customer direction and the funding to implement a plan to achieve the desired results.”

The EFV Mission Essential Functions (MEFs) of land and water high speed maneuver, firepower lethality, communication systems, and the ability to carry a reinforced infantry squad and armor protection have been met and validated. Achieving reliability is the only remaining performance parameter before low rate production can begin, which is projected for 2011. General Dynamics is working very closely with the U.S. Marine Corps and remains committed to achieving the EFV reliability requirement at the earliest practical date.

Work will be performed with existing employees in Woodbridge, Virginia (40%); Indianapolis, Indiana (24%); Sterling Heights, Michigan (10%); Friedrichshafen, Germany (10 %) and various other states (16%).

The EFV is an amphibious assault vehicle with a breakthrough design that provides the Marines with a transformational leap in technology and capability resulting in dramatically improved land and sea performance.

Once deployed, the EFV will help the Marines sustain inland combat operations by maximizing tactical surprise; minimizing vulnerability on land; providing improved firepower, lethality, and survivability; and providing on-the-move command, control, communication and computer intelligence (C4I) capabilities.

On land, the EFV will maneuver and fight as an integrated part of the joint services ground combat force. The vehicle is capable of speeds up to 45 mph, allowing it to complement the Abrams main battle tank during offensive maneuvers to inland objectives. The EFV’s land mobility and communications capabilities are expected to provide Marines with the ability to exploit enemy force vulnerabilities.

Off shore, the EFV allows Marines to implement their Operational Maneuver from the Sea doctrine. The EFV can launch forces from 20 to 25 nautical miles at sea, carrying its crew of three and 17 combat-ready Marines to shore at speeds in excess of 20 knots, three times faster than the current AAVP7-A1. This provides a significant increase in operational flexibility and agility.

General Dynamics, headquartered in Falls Church, Va., employs approximately 81,100 people worldwide, and expects 2006 revenues 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 http://www.generaldynamics.com.

March 19, 2007
Contact: Karl G. Oskoian
Tel: (586) 825-7980
Email: oskoiank@gdls.com



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