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General Dynamics NASSCO Awarded Contract for Frigate Maintenance and Repair

SAN DIEGO – General Dynamics NASSCO, a wholly-owned subsidiary of General Dynamics (NYSE: GD), has been awarded a contract by the U.S. Navy to provide maintenance and emergent repair services for San Diego-based frigates. The total potential value of the contract if all options are exercised is approximately $75 million for work to be performed between now and 2012.

“For four years, NASSCO has been responsible for the upkeep of the seven frigates based in San Diego,” said Frederick J. Harris, president of General Dynamics NASSCO. “We look forward to continuing our service to the Navy and the crews of these ships into the next decade.”

Under the contract NASSCO will perform as many as 23 scheduled maintenance availabilities. The contract also covers repair work to be performed aboard frigates that visit San Diego from other Pacific Fleet homeports. The initial value of the contract is $63,000 for the preparatory work leading to the maintenance availability aboard USS Gary (FFG 51), which is scheduled to begin in late September.

NASSCO was awarded a five-year maintenance contract for FFG 7-class ships in August 2003. The San Diego shipyard also leads the repair and maintenance work conducted aboard all San Diego-based amphibious assault ships and participates in the upkeep of other ship classes.

General Dynamics NASSCO employs more than 4,600 people and is the only major ship construction and repair yard on the West Coast of the United States. In addition to its ship repair business, NASSCO has four T-AKE ships under construction for the Navy and will soon begin construction on the first of nine product carriers for U.S. Shipping Partners L.P. Additional information on NASSCO can be found at www.nassco.com.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 82,900 people worldwide and anticipates 2007 revenues of more than $27 billion. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about the company is available online at www.generaldynamics.com.

August 17, 2007
Contact: Karl D. Johnson
Tel: (619) 544-8860
Email: kjohnson@nassco.com

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