General Dynamics

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Falls Church, Virginia 22042-4513


December 21, 2000
Tel: (781) 455-2286

General Dynamics Wins Contract to Provide Telecommunications Solutions in Saudi Arabia

NEEDHAM, Mass. – General Dynamics Worldwide Telecommunication Systems, a business unit of General Dynamics (NYSE: GD), has been awarded a $39 million contract with Saudi Aramco to engineer, furnish and install a telecommunications system for a new gas field in Saudi Arabia.

Under the contract, General Dynamics will design, construct and deploy a total telecommunications system for the Haradh Gas Plant, which Saudi Aramco plans to complete in late 2003. The communications infrastructure includes a fiber optic backbone, Synchronous Digital Hierarchy (SDH) communications equipment, a mobile radio network, a telephone/PABX system, communication buildings, a LAN/WAN network using ATM switches, a paging system and other subsystems. The contract will be completed in two years.

"Working in the desert is extremely difficult and requires dependable, efficient professionals," said Bill Lightfoot, vice president of international programs for General Dynamics Worldwide Telecommunication Systems. "Saudi Aramco knows that General Dynamics’ experience in managing complex projects around the world is unrivaled. They know we’re in a people business and they trust that our people will deliver a quality product in a timely fashion."

In addition to being the largest oil-producing country in the world, Saudi Arabia also possesses an abundance of natural gas. Gas production has grown steadily over the years, ranking Saudi Arabia among the world's top 10 nations. New discoveries in the Haradh area have added significantly to the country's total gas reserves. Saudi Arabia ranks fourth in the world in known gas reserves and first in proven oil reserves.

Today’s award follows three previous contracts with Saudi Aramco to build telecommunications systems in the Shaybah Oil Field ($65 million), the Hawiyah Gas Plant ($17 million) and a $28 million contract awarded in August for the Offshore Fiber Optic Cable System Project. For that project, General Dynamics is building a new fiber optic network to connect Saudi Aramco’s Arabian Gulf offshore oil platforms to the mainland. General Dynamics is replacing the existing microwave systems with undersea fiber optic cable. The SDH network will support high-bandwidth voice and data communications, allowing land-based decision authorities to monitor performance of the oil platforms at sea. Design and procurement work ended this month, and will be followed by installation and commissioning of the new network, plus removal of the existing microwave equipment, in 2001.

General Dynamics Worldwide Telecommunication Systems has been delivering telecommunications solutions for more than 40 years, in all 50 states and more than 40 countries. With more than 3,200 employees, General Dynamics Worldwide Telecommunication Systems provides worldwide support to commercial and government customers alike.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 44,000 people worldwide and has annualized sales of approximately $10 billion. The company has leading market positions in telecommunications, shipbuilding and marine systems, land and amphibious combat systems, information systems, 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. For more information, see Forward Looking Statement.