- GENERAL DYNAMICS TO ADD EMPLOYEES -

EYNON, Penn. - Today General Dynamics Land Systems announced a plan to increase its work force at Eynon, Pennsylvania, by up to 150 employees with the activation of a new production line in 2004.

General Dynamics will be relocating to Eynon the machining of the hydropneumatic suspension system manufacturing for the Marine Corps' Advanced Amphibious Assault Vehicle, which General Dynamics Land Systems recently purchased from Cadillac Gage. In addition to moving the AAAV work, General Dynamics will concentrate the machining of suspension components for the Army's Crusader advanced field artillery system at Eynon. When these programs go to full production the plant's work force could grow to more than 250 employees.

"General Dynamics' plant in Eynon has been a machining center of excellence for many years. Its most notable products being; suspension component parts and housings for electrical-optical sights for the M1A2 Abrams tank - long recognized as one of the world's finest main battle tanks," said Congressman Don Sherwood (R-PA). To capitalize on the superior skills and knowledge of its Pennsylvania workers, General Dynamics Land Systems is concentrating tracked combat vehicle suspension system machining at Eynon. The plant population will more than double its size in five years with the recall from lay-off of former employees and the hiring of new workers to fill new production line and management positions," Sherwood said.

"We've had some lean years in the Defense business and particularly at the plant in Eynon, but its employees have been a loyal and productive resource," said Arthur J. Veitch, President, General Dynamics Land Systems. "They've consistently provided us with high quality products and worked diligently to reduce the cost to our customers. I'm proud that we've been able to involve the UAW and our Pennsylvania congressional supporters in announcing this expansion," Veitch said.

General Dynamics Land Systems' Scranton Operations employs over 100 people and is located in the city of Eynon in northeastern Pennsylvania. The plant sits on approximately 30 acres with 220,000 square feet of machining area under one roof. An attached warehouse has an additional 50,000 square feet of which 18,000 square feet has been converted to manufacturing space. The plant has a completely automated material inventory and requisitioning system and parking for over 400 cars. It contains 261 pieces of industrial plant equipment of which 60 machines are computer numerically controlled. A 1,200 square foot clean room is used for the shock absorber assembly.

The AAAV is part of the Operational Maneuver From The Sea triad of vehicles which includes the Marine Corps' MV-22 Osprey tilt-rotor aircraft and the Navy's Landing Craft Air Cushion. Its mission is to provide high-speed transport of embarked Marine Infantry from ships located beyond the horizon to inland objectives. General Dynamics is the prime contractor for the AAAV.

Crusader is a system of two new state-of-the-art ground combat vehicles - a self-propelled 155mm howitzer and an automated ammunition resupply vehicle. Team Crusader, led by United Defense and its teammate General Dynamics, is in its fourth year of development. The program is scheduled to begin production in 2003.

General Dynamics Land Systems, a subsidiary of General Dynamics Corporation, (NYSE:GD), is a world leader in the development, production, and support of land and amphibious combat vehicles. Its 3,500 employees operate plants and facilities in seven states and at three international locations. More information about GDLS can be found on the Internet at http://www.gdls.com/

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LS-99-7
7-12-99