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General Dynamics Selected by SpaceData as Prime Contractor for Deployment of SeismicStar Satellite Communication Systems

Four-year Program Has Potential to Exceed $100 Million in Value

FALLS CHURCH, Va. -- General Dynamics Worldwide Telecommunication Systems, a subsidiary of General Dynamics (NYSE: GD), was selected by SpaceData International LLC as the prime contractor for its SeismicStar program.

In its press release today, SpaceData said, "under the terms of the contract, General Dynamics Worldwide Telecommunication Systems will provide worldwide engineering and operations support for SpaceData's SeismicStar services.

"SpaceData's SeismicStar is a new service for marine seismic exploration sector of the gas & oil industry. Designed to transmit data at 311 Mbps directly from operational seismic exploration vessels worldwide, SpaceData's SeismicStar will provide a complete end-to-end seismic data transfer service for the seismic exploration industry mapping the sub-ocean floor to locate and manage drilling sites for new oil and gas reservoirs.

"SpaceData has placed an initial order for three SeismicStar shipboard terminals and associated services valued at approximately $5 million. Orders placed over the four-year period of the contract could exceed $100 million.

"The first SpaceData SeismicStar system is scheduled for deployment on a seismic exploration vessel in April 2000.

"General Dynamics Worldwide Telecommunication Systems will procure, integrate, assemble, test, install, and remotely operate the SeismicStar terminals on the exploration vessels. General Dynamics will also be responsible for procuring and operating the SeismicStar network's terrestrial earth stations and high-speed fiber connectivity to terrestrial supercomputers for seismic exploration data processing. The SpaceData Control Center (Las Cruces, New Mexico), which is owned and operated by General Dynamics Worldwide Telecommunication Systems, will provide operational control and maintenance for the entire end-to-end worldwide SeismicStar system.

"SpaceData's SeismicStar terminals will be installed on ocean-going seismic exploration vessels and will automatically transfer the daily seismic data files by a high-speed 'broadband-on-command' service through a highly unique series of geostationary satellites to ground station facilities in the United States and then by fiber to customer's supercomputers for data processing. Today these seismic vessels gather and store very large data files on tape on a daily basis. These tapes are physically transferred on the occasions when supply vessels or helicopters can reach the vessels and remove the data tapes for later shipment or hand-carry to terrestrial sites for eventual processing and evaluation.

"This complete end-to-end SeismicStar system is currently designed to deliver the daily high-speed data transmission of very large data files between remote offshore marine seismic exploration vessels and land-based supercomputers allowing faster turnaround of information.

"SpaceData International LLC, based in McLean, Virginia, was established in 1998 to provide very high-speed satellite transmission of gigabyte-size data files utilizing an existing constellation of broadband geostationary satellites. Through a series of alliances with other service providers, SpaceData will own or operate satellite communications facilities worldwide."

General Dynamics Worldwide Telecommunication Systems, based in Needham, Massachusetts, engineers, furnishes, installs and maintains a full range of communications systems and information networks, including asynchronous transfer mode (ATM) networks, large digital switches, satellite communications systems and services, campus distribution systems and wireless networks. The company has nearly 3,000 employees worldwide, with operations in more than 75 countries. Major customers include the U.S. Department of Defense, civilian Federal agencies and commercial telecommunications service providers.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 43,000 people worldwide and has annualized sales of approximately $10 billion. The company has leading market positions in shipbuilding and marine systems, land and amphibious combat systems, information systems, telecommunications and business aviation.

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Any "forward-looking statements" contained in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

General Dynamics Corporation (ticker: GD, exchange: NYSE)
News Release - Wednesday, March 15, 2000
Press Contact: (703) 876-3190