June 3, 2007

ST. PETERSBURG,  Fla. – General Dynamics Ordnance and Tactical Systems, a business unit of General Dynamics (NYSE: GD), has been awarded a $44 million modification to an existing contract for production of small-caliber ammunition by the U.S. Army Field Support Command, Rock Island, Ill.

This award is the third delivery order executed under this systems contract for a cumulative total of $500 million.

This delivery order is for the production of 5.56mm, 7.62mm and .50 caliber small-arms cartridges to replenish stockpiles used in training and expended during combat operations. General Dynamics serves as the systems integrator coordinating supply-chain management of a consortium of small-caliber ammunition producers whose purpose is to respond to the U.S. Defense Department’s needs for small-caliber ammunition.

General Dynamics Ordnance and Tactical Systems is a world leader in the manufacture of large, medium- and small-caliber direct and indirect-fire munitions, mortar weapons and systems, artillery projectiles, 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. More information on General Dynamics Ordnance and Tactical is available online at www.gd-ots.com.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 82,600 people worldwide and had 2006 revenues of $24.1 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 online at www.generaldynamics.com.

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