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General Dynamics Awarded $278 Million by U.S. Army to Produce Hydra-70 Rockets, Warheads and Motors

CHARLOTTE, N.C. – The U.S. Army Contracting Command, AMCOM Contracting Center, Redstone Arsenal, Ala., has awarded General Dynamics Armament and Technical Products a firm fixed price contract for the production of the 2.75-inch Hydra-70 rocket system. The award consists of a base-year contract valued at approximately $278 million to support the fiscal year 2010 requirements for the U.S. Army, Air Force, Navy and foreign military, with deliveries through October 2012.

The contract includes three additional one-year range options which, if exercised by the U.S. Army, would continue production for the fiscal years 2011-2013. The estimated potential value of the contract is just under $1 billion if all options are exercised. General Dynamics Armament and Technical Products is a business unit of General Dynamics (NYSE: GD).

The Hydra-70 rocket system consists of a family of 2.75-inch rockets with a variety of unitary, cargo, illumination and obscurant warheads for multiple mission applications. The rocket can be fired from the U.S. Army’s Apache and Kiowa Warrior helicopters and other rotary and fixed-wing aircraft.

“The Hydra-70 rocket is a versatile and proven-effective weapon system that remains relevant to the U.S. warfighter,” said Russ Klein, vice president and general manager of weapon systems for General Dynamics Armament and Technical Products.

Load, assemble and pack operations will be conducted by the existing workforce at the company’s Camden, Ark., facility. System engineering and program management will be performed at General Dynamics’ Burlington Technology Center in Vermont.

“Our Hydra-70 team is currently producing more than 2,000 rocket motors a day in support of our customer’s needs,” Klein continued.

General Dynamics Armament and Technical Products, located in Charlotte, N.C., provides a broad range of system solutions for military and commercial applications. The company designs, develops and produces high-performance weapon and armament systems, defensive armor, countermeasure systems and aerospace composite solutions, as well as off-road axle and suspension systems. It is also a leading U.S. producer of biological and chemical detection systems. More information about General Dynamics Armament and Technical Products can be found on the Internet at www.gdatp.com.

General Dynamics, headquartered in Falls Church, Va., employs approximately 91,000 people worldwide. 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 General Dynamics is available online at www.generaldynamics.com.

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August 5, 2010
Contact: Karl Johnson
Tel: (704) 714-8121
Email: kjohnso3@gdatp.com