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General Dynamics NASSCO Lays Keel of Seventh T-AKE Ship

Construction of Eighth T-AKE Ship Begins

SAN DIEGO – General Dynamics NASSCO, a wholly owned subsidiary of General Dynamics (NYSE: GD), laid the keel for the seventh dry cargo-ammunition ship in the U.S. Navy’s T-AKE program and started construction of the eighth ship this week. Both ships will be delivered to the Navy in 2009.

“Laying the keel of T-AKE 7 and starting construction of T-AKE 8 are the latest milestones in the successful Navy auxiliary ship program,” said Frederick J. Harris, president of General Dynamics NASSCO. “These two events are evidence that the NASSCO team is building and delivering T-AKE ships efficiently. With one ship now deployed overseas and two other ships in service, the T-AKE class is already contributing to the Navy’s forward presence posture.”

The keel of T-AKE 7 was laid on November 2, while construction of T-AKE 8 began on October 31. Last week, NASSCO launched USNS Robert E. Peary (T-AKE 5) and successfully completed sea trials for USNS Richard E. Byrd (T-AKE 4). Since June 2006, NASSCO has delivered three T-AKE ships to the Navy, and will soon deliver the Richard E. Byrd. The shipyard has contracts to build the first nine ships of the T-AKE class and recently reached an agreement to terms for ships 10 through 14.

Designed by NASSCO, the T-AKE class incorporates international marine technologies and commercial ship-design features, including an integrated electric-drive propulsion system, to minimize operating costs over its projected 40-year service life. The primary mission of T-AKE ships is to deliver as much as 10,000 tons of food, ammunition, fuel and other provisions to combat ships at sea.

Located in San Diego, NASSCO employs more than 4,600 people and is the only major ship construction yard on the West Coast of the United States. In addition to the T-AKE program, the shipyard is building the first of nine product carriers for U.S. Shipping Partners L.P. More information on NASSCO can be found at www.nassco.com.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 83,000 people worldwide and had 2006 revenues of $24.1 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.

November 2, 2007
Contact: Karl D. Johnson
Tel: (619) 544-8860
Email: kjohnson@nassco.com