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General Dynamics Awarded $258 Million for Improved Abrams SEP Reset

STERLING HEIGHTS, Mich. – The U.S. TACOM Lifecycle Management Command has awarded General Dynamics Land Systems, a business unit of General Dynamics (NYSE: GD), $257.8 million for the material to reset 180 Abrams tanks under the Abrams Improved SEP Reset (ISR) program. The program could total in excess of $320 million if all options are exercised.

As part of the Improved Systems Enhancement Package (SEP) Reset program, M1A2 SEP Version One tanks are modified to the SEP Version Two configuration, which includes improved displays, sights, power and a tank-infantry phone. It is the most technologically advanced digital Abrams tank and can accommodate future technology improvements to ensure compatibility with the Army’s Future Combat Systems.

Work on 180 tanks will be performed by existing employees in Anniston, Ala.; Tallahassee, Fla.; Lima, Ohio; Sterling Heights, Mich.; and Scranton, Pa. Deliveries begin in September 2009 and are expected to be completed by September 2010.

General Dynamics, headquartered in Falls Church, Va., employs approximately 83,000 people worldwide and anticipates 2007 revenues of approximately $27 billion. The company has leading market positions in mission critical information systems and technologies, land and amphibious combat systems, shipbuilding and marine systems, and business aviation. More information about the company is available on the Internet at www.generaldynamics.com.

December 20, 2007
Contact: Rae Higgins
Tel: (586) 825 - 4610

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