ST. PETERSBURG, Fla. - General Dynamics Ordnance and Tactical Systems, a business unit of General Dynamics (NYSE: GD), announced today that the U.S. Army Tank-Automotive and Armaments Command at Picatinny Arsenal, N.J., has awarded it a multi-year contract (one base year plus four option years) for the production of mortar propelling increment charges for 81mm and 120mm mortar ammunition.  Total value of this contract, if all options are fully exercised, could exceed $200 million; the initial award value was $6 million.

Under the contract, General Dynamics will produce the 81mm M218, M219 and M220 propelling charges, as well as the M233 and M234 for the 120mm mortar system. Production and program management will be performed out of the General Dynamics Medium Caliber Ammunition facility located in Marion, Ill.  Work is expected to be completed by April 2010.

General Dynamics Ordnance and Tactical Systems is a world leader in the manufacture of large- and medium-caliber direct and indirect-fire munitions, bomb bodies and Ball Powder® propellant. The company also manufactures precision metal components; provides explosive load, assemble and pack services for a variety of munitions, tactical missile and rocket programs; and designs and produces shaped charge warheads and control actuator systems.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 71,600 people worldwide and anticipates 2004 revenue in excess of $19 billion.  The company is a market leader in mission-critical information systems and technologies; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and business aviation. More information about the company can be found at www.generaldynamics.com.