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General Dynamics Completes Acquisition of SNC Technologies Inc.

January 8, 2007

FALLS CHURCH, Va. – General Dynamics (NYSE: GD) today completed its acquisition of SNC Technologies Inc., a wholly owned subsidiary of SNC-Lavalin Group Inc. (TSX: SNC) of Montreal, Quebec, for approximately US$275 million (CAN$315 million). Plans for the acquisition were announced on February 23, 2006. SNC Technologies Inc. (“SNC TEC”) is an ammunition system integrator that supplies small-, medium- and large-caliber ammunition and related products to the Canadian Forces, other national defense customers and law enforcement agencies around the world.

The acquisition, which was approved by the governments of Canada and the United States, will be immediately accretive to General Dynamics.

Charles M. Hall, General Dynamics executive vice president for Combat Systems, said, “By adding SNC TEC’s strengths to those of General Dynamics Ordnance and Tactical Systems, we will improve its competitive position and increase its reach beyond the Canadian market. Through this acquisition, we are building a stronger foundation for growth and a greater capacity to capture new opportunities globally.”

In seeking Canadian government approval of the acquisition, General Dynamics entered an agreement with the Minister of Public Works and Government Services Canada that establishes the company’s commitment to helping to ensure Canada’s ability to develop and manufacture ammunition within its own borders; to continue assigning the highest priority to meeting the Canadian Forces’ ammunition and explosives requirements, now and in the future; and to strengthening the organization’s research and development capability in Canada.

The agreement also provides for the maintenance of SNC TEC’s facilities within their current provincial borders; utilization of Canadian skills, services, materials and knowledge to the maximum extent possible; and the establishment of an ongoing consultative mechanism with the Government of Canada to ensure that the SNC TEC organization continues to meet Canada’s ammunition requirements and objectives over time.

Hall said, “We reached an agreement with the Government of Canada that will maintain and potentially expand the facilities, skill sets and work force necessary to develop and manufacture ammunition within Canada’s national boundaries, while enabling General Dynamics to earn a fair return on its investment.”

SNC TEC employs approximately 1,600 workers at sites near Montreal and Quebec City, Valleyfield and Nicolet, Quebec. It will become part of the General Dynamics Ordnance and Tactical Systems business unit, which is a world leader in the manufacture of large- and medium-caliber direct and indirect-fire munitions, bomb bodies and Ball Powder® propellant.

Headquartered in Le Gardeur, Quebec, SNC TEC is a main supplier of ammunition used by the Canadian Department of National Defence. It also supplies small-, medium- and large-caliber ammunition to the U.S. Defense Department, as well as Australia, Belgium, Denmark, France, Greece, Holland, Hong Kong, Italy, Jordan, Kuwait, New Zealand, Oman, Singapore, Sweden, Thailand, the Philippines, the United Kingdom and the United Arab Emirates. The company also produces pyrotechnics, propellants and explosives for the military; small-caliber training ammunition and related training devices.

General Dynamics, headquartered in Falls Church, Va., employs approximately 81,100 people worldwide, and expects 2006 revenues of approximately $24 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.

NOTE: Currency conversions were calculated at the Feb. 22, 2006, rate of US$0.87 to CAN $1.00.

This press release contains certain forward-looking statements that are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Actual future results and trends may differ materially from what is forecast in forward-looking statements.

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	General Dynamics Completes Acquisition of SNC Technologies Inc. January 8, 2007 FALLS CHURCH, Va. – General Dynamics (NYSE: GD) today completed its acquisition of SNC Technologies Inc., a wholly owned subsidiary of SNC-Lavalin Group Inc. (TSX: SNC) of Montreal, Quebec, for approximately US$275 million (CAN$315 million). Plans for the acquisition were announced on February 23, 2006. SNC Technologies Inc. (“SNC TEC”) is an ammunition system integrator that supplies small-, medium- and large-caliber ammunition and related products to the Canadian Forces, other national defense customers and law enforcement agencies around the world. The acquisition, which was approved by the governments of Canada and the United States, will be immediately accretive to General Dynamics. Charles M. Hall, General Dynamics executive vice president for Combat Systems, said, “By adding SNC TEC’s strengths to those of General Dynamics Ordnance and Tactical Systems, we will improve its competitive position and increase its reach beyond the Canadian market. Through this acquisition, we are building a stronger foundation for growth and a greater capacity to capture new opportunities globally.” In seeking Canadian government approval of the acquisition, General Dynamics entered an agreement with the Minister of Public Works and Government Services Canada that establishes the company’s commitment to helping to ensure Canada’s ability to develop and manufacture ammunition within its own borders; to continue assigning the highest priority to meeting the Canadian Forces’ ammunition and explosives requirements, now and in the future; and to strengthening the organization’s research and development capability in Canada. The agreement also provides for the maintenance of SNC TEC’s facilities within their current provincial borders; utilization of Canadian skills, services, materials and knowledge to the maximum extent possible; and the establishment of an ongoing consultative mechanism with the Government of Canada to ensure that the SNC TEC organization continues to meet Canada’s ammunition requirements and objectives over time. Hall said, “We reached an agreement with the Government of Canada that will maintain and potentially expand the facilities, skill sets and work force necessary to develop and manufacture ammunition within Canada’s national boundaries, while enabling General Dynamics to earn a fair return on its investment.” SNC TEC employs approximately 1,600 workers at sites near Montreal and Quebec City, Valleyfield and Nicolet, Quebec. It will become part of the General Dynamics Ordnance and Tactical Systems business unit, which is a world leader in the manufacture of large- and medium-caliber direct and indirect-fire munitions, bomb bodies and Ball Powder® propellant. Headquartered in Le Gardeur, Quebec, SNC TEC is a main supplier of ammunition used by the Canadian Department of National Defence. It also supplies small-, medium- and large-caliber ammunition to the U.S. Defense Department, as well as Australia, Belgium, Denmark, France, Greece, Holland, Hong Kong, Italy, Jordan, Kuwait, New Zealand, Oman, Singapore, Sweden, Thailand, the Philippines, the United Kingdom and the United Arab Emirates. The company also produces pyrotechnics, propellants and explosives for the military; small-caliber training ammunition and related training devices. General Dynamics, headquartered in Falls Church, Va., employs approximately 81,100 people worldwide, and expects 2006 revenues of approximately $24 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. NOTE: Currency conversions were calculated at the Feb. 22, 2006, rate of US$0.87 to CAN $1.00. This press release contains certain forward-looking statements that are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Actual future results and trends may differ materially from what is forecast in forward-looking statements. BACK