February 8, 2008
P.O. Box 2074	Contact: Rae Higgins
Warren, MI 48090-2074	Tel: 586 825 4610
www.gdls.com	higginra@gdls.com

U.S. Army Awards General Dynamics $39 Million for Abrams Upgrades

First Increment of Multi-year Contract

STERLING HEIGHTS, Mich. – The U.S. Army TACOM Lifecycle Management Command has awarded General Dynamics Land Systems, a business unit of General Dynamics (NYSE: GD), a multiyear contract to upgrade 435 M1A1 Abrams main battle tanks. The vehicles will be converted to the M1A2 Systems Enhancement Package (SEP) Version Two (V2) configuration. The first increment of the multi-year contract is valued at $39 million and will fund the upgrade of 20 M1A1 Abrams tanks.

This multi-year procurement contract will complete the modernization of all remaining M1A1 tanks which have been in the Army’s inventory for more than 20 years.

The most technologically advanced digital tank, the M1A2 SEP V2 includes improved displays, sights, auxiliary power and a tank-infantry phone. It also can accommodate future technology improvements to ensure compatibility with the U.S. Army’s Future Combat Systems.

This award is in addition to $12.4 million awarded in January to fund parts for the upgrades. Work will be performed in Anniston, Ala.; Tallahassee, Fla.; Sterling Heights, Mich.; Lima, Ohio; and Scranton, Penn. The upgrade program is expected to be completed in June 2013.

General Dynamics, headquartered in Falls Church, Va., employs approximately 83,500 people worldwide and reported 2007 revenues of $27.2 billion. The company has leading market positions in mission critical information systems and technologies, land and amphibious combat systems, shipbuilding and
marine systems, and business aviation. More information about the company is available on the Internet at www.generaldynamics.com.