- GENERAL DYNAMICS AND MTU SIGN AGREEMENT TO PRODUCE
MT880 SERIES ENGINES -

STERLING HEIGHTS, Mich. - General Dynamics Land Systems and Motoren- und Turbinen-Union (MTU) of Friedrichshafen, Germany, have signed an agreement to produce and sell MTU's 880 series engines for use in military vehicles worldwide. The engines will be produced at Land Systems' Power Pack Center in Muskegon, Michigan.

This agreement adds the 1500 horsepower MTU diesel engine to the Power Pack Center product line, and provides General Dynamics the opportunity to penetrate other domestic and international markets. General Dynamics has already identified international customers for this engine, and has entered into preliminary contract discussions for deliveries as early as year 2000.

"This agreement with MTU allows General Dynamics to offer a wide variety of propulsion systems to meet the needs of our current and future domestic and international customers," said Arthur J. Veitch, Land Systems president. "It establishes our new Power Pack Center as a center of excellence for military propulsion products worldwide, and allows our two companies to join our talents and facilities to grow th e market for these outstanding engines."

The General Dynamics Land Systems Power Pack Center has designed and built diesel engines for combat vehicles and other applications since 1942. Their engines can be found in more than 20,000 tanks and armored vehicles throughout the world. In addition, they develop and produce transmissions and hydropneumatic suspensions for combat vehicles including the United States Army's new Self Propelled Howitzer, the Crusader.

General Dynamics Land Systems, a subsidiary of General Dynamics Corporation, is a world leader in the development, production, and support of armored vehicles and electronic systems. Its 3,500 employees operate plants and facilities in seven states and at three international locations. More information about General Dynamics Land Systems can be found on the Internet at www.gdls.com.

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LS-98-15
8-19-98