- GM DEFENSE TEAMS WITH GENERAL DYNAMICS TO PURSUE
U.S. ARMY ARMORED VEHICLE CONTRACT -

STERLING HEIGHTS, Mich. - GM Defense and General Dynamics Land Systems, jointly announced a cooperative arrangement to offer the LAV III 8x8 Light Armored Vehicle to the U.S. Army's Brigade Combat Team (BCT) program.

The BCT program is an Army initiative requiring production and delivery of a versatile and highly flexible family of combat vehicles to equip at least five new brigade combat teams of several hundred vehicles each, beginning in March 2001. The contract award for this vehicle program could be announced as early as June 29, 2000.

Besides offering a full family of vehicles, GM Defense and General Dynamics are joining forces to offer the U.S. Army necessary product improvements and service support during the life of the Brigade Combat Team program.

"This is a working partnership that is designed to bring together the design, manufacturing, and systems integration skills and experience of our two organizations," said William J. Pettipas, Executive Director of GM Defense. "Our focus is on fielding a world class family of vehicles for the U.S. Army's Brigade Combat Team program."

"Today's announcement brings together a strong team focused on helping the Army achieve their transformation objective," said Charles M. Hall, President, General Dynamics Land Systems. "It's an expansion of the relationship started by the companies in 1997 to pursue the Canadian Forces' Armored Combat Vehicle Program and brings together the capability and experience necessary to satisfy the U.S. Army's short-term and long-term BCT requirements."

GM Defense is a group of GM-owned business units engaged in the design and production of defense equipment. The group is comprised of research, design, and manufacturing facilities in London, Ontario; Goleta, California; Detroit, Michigan; and Kreuzlingen, Switzerland. Operations within GM Defense have more than 20 years of experience in the design, manufacture, and delivery of a unique family of light armored vehicles. Those vehicles are in service with the United States Marine Corps, the United States Army National Guard, and with other military forces throughout the world.

General Dynamics Land Systems is a wholly owned subsidiary of General Dynamics (NYSE:GD). General Dynamics, headquartered in Falls Church, Virginia, employs approximately 43,000 people worldwide and has annualized sales of approximately $10 billion. The company has leading market positions in shipbuilding and marine systems, land and amphibious combat systems, information systems, and business aviation.

More information about General Dynamics Land Systems can be found on the Internet at http://www.gdls.com/.