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U.S. Army Awards General Dynamics $24 Million for M107 Metal Parts Production

ST. PETERSBURG, Fla. – The U.S. Army Sustainment Command at Rock Island, Ill., has awarded General Dynamics Ordnance and Tactical Systems $24.2 million for the first year of a multi-year contract for the production of M107 projectile metal parts. The contract has a total potential value of $189 million. General Dynamics Ordnance and Tactical Systems is a business unit of General Dynamics (NYSE: GD).

The M107 is a low-cost, 155mm High Explosive artillery projectile that is used in war and in training. The rounds are fired from the Paladin, M-198 and the M-777 howitzers and are utilized by the U.S. Army and U.S. Marine Corps.

"This award reaffirms our long and noteworthy performance in providing high-quality artillery and mortar projectiles for the Armed Services,” said James Flaherty, vice president and general manager of General Dynamics Ordnance and Tactical Systems Scranton Operations.

Work on the contract will be performed at the company’s Scranton, Pennsylvania, facility and will be completed in October, 2008.

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 warheads and control actuator systems. More information on General Dynamics Ordnance and Tactical is available online at www.gd-ots.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.

Aug. 31, 2007
Contact: Laurie VanBrocklin
Tel: 727 578-8187
Fax: 727 578-8780
lgvanbrocklin@gd-ots.com



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