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General Dynamics NASSCO Awarded Contract for Amphibious Assault Ship Modernization

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 modernize San Diego-homeported LSD 41 and LSD 49-class amphibious assault ships. The total potential value of the contract if all options are exercised is approximately $210 million for work to be performed through 2014.

Under the contract, NASSCO will perform as many as six scheduled availabilities in San Diego. The work to be performed includes routine maintenance as well as shipboard alterations that are intended to extend the service lives of the ships. The initial value of the modernization contract is approximately $100,000 for the preparatory work leading to the maintenance availability aboard USS Germantown (LSD 42), which is scheduled to begin in December.

NASSCO was awarded a seven-year contract for maintenance and emergent repair of LSD 41 and LSD 49-class ships, as well as LPD 4-class ships, in December 2005. The San Diego shipyard also leads the repair and maintenance work conducted aboard all San Diego-homeported LHA and LHD-class amphibious assault ships and FFG 7-class frigates and participates in the upkeep of other ship classes.

General Dynamics NASSCO employs more than 4,700 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 is currently building four T-AKE ships for the Navy and two 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, Va., employs approximately 84,000 people worldwide and reported 2007 revenues of $27.2 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 on the Internet at http://www.generaldynamics.com.

July 9, 2008
Contact: Karl D. Johnson
Tel: (619) 544-8860
Email: kjohnson@nassco.com



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