ASCOD SV
General Dynamics

2941 Fairview Park Drive, Suite 100
Falls Church, Virginia 22042-4513
www.generaldynamics.com

news

July 30, 2002
Tel: (860) 433-8556

General Dynamics Awarded $61M Contract

GROTON, Conn. – Electric Boat, a wholly owned subsidiary of General Dynamics (NYSE: GD), has been awarded a U.S. Navy contract worth up to $61.1 million to maintain and operate the Shippingport drydock at the Naval Submarine Base New London.

The contract covers an initial period of one year, with options for four additional years. Management, operation and preventative maintenance of the Shippingport will be provided on a cost-plus-fixed-fee basis and is worth up to $34.6 million over the next five years, with $2.2 million of the total funded in the current fiscal year. The drydocking services associated with this contract will be paid on a firm-fixed-price basis and will be worth up to $26.4 million during the life of the contract.

The Shippingport (ARDM-4), which is used to lift submarines out of the water for repairs, had previously been operated by Navy personnel, but will now be run by a civilian crew of about 40 Electric Boat employees.

Assuming control of the Shippingport will give EB yet another presence at the sub base. The company already oversees the Navy’s Nuclear Regional Maintenance Department there, as well as providing more than 200 employees to help staff the Naval Submarine Support Facility.

General Dynamics, headquartered in Falls Church, Va., employs approximately 54,000 people worldwide and anticipates 2002 revenues of $14 billion. The company has leading market positions in land and amphibious combat systems, mission-critical information systems and technologies, shipbuilding and marine systems, and business aviation.

# # #

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.