STERLING HEIGHTS, Mich. – The U.S. Army has awarded General Dynamics Land Systems, a business unit of General Dynamics (NYSE: GD), a $134.6 million contract to upgrade 60 M1A2 Abrams main battle tanks to the System Enhancement Package (SEP) configuration (M1A2 SEP), the latest, most technologically advanced Abrams tank. The contract includes a $145 million option to upgrade 60 additional M1A2 Abrams tanks.

The M1A2 SEP is a fully digitized platform with a new command and control system, second-generation thermal sights and improved armor. This retrofit is part of an overall M1A2 tank upgrade program that integrates information technologies to improve soldier warfighting capability with enhanced command and control features like color maps and displays, networked communications, high-density computer memory and increased microprocessing speed.

Work will be performed by existing General Dynamics employees in Lima, Ohio; Anniston, Ala.; Tallahassee, Fla.; Sterling Heights, Mich.; and Eynon, Pa. Delivery of the first 60 vehicles is slated to begin in November 2007. The 60 tanks associated with the option, if it is exercised, would be scheduled for delivery beginning in November 2008.

General Dynamics, headquartered in Falls Church, Va., employs approximately 81,900 people worldwide and had 2005 revenue of $21.2 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 can be found online at www.generaldynamics.com.