- General Dynamics Land Systems Acquires F&M Manufacturing, Inc. -

STERLING HEIGHTS, Mich. - General Dynamics Land Systems, Inc. (GDLS) and F&M Manufacturing, Inc. (F&M) announced today that they have entered into a definitive agreement for GDLS to purchase F&M for $31 million in cash.

The transaction is subject to the normal regulatory approvals. The acquisition will be treated as an asset purchase and is expected to close within 30 days. When complete F&M will operate as a wholly owned subsidiary of General Dynamics Land Systems.

F&M Manufacturing is a value-added contract manufacturer with a strong advanced engineering capability. It has gained a national reputation in the design and manufacturing of complex electronic and electro-mechanical systems for commercial customers and agencies of the federal government. It is recognized as a leader on the development of unmanned robotic vehicles. Located in Westminster, Maryland, F&M employs over 170 staff and recorded revenue of $40.9 million in 1998.

"This is an excellent opportunity to expand into unmanned robotic vehicle technology, a key capability for future land and amphibious combat vehicles," said Arthur J. Veitch, President General Dynamics Land Systems. "F&M strengthens our engineering, design and development expertise while complementing our existing precision machining and fabrication centers of excellence. Their contracts with NASA, the U.S. Postal Service, and with aerospace and commercial entities will enhance our business portfolio. Most important, F&M has a team of talented, motivated employees and we welcome them to our organization," Veitch said.

"Being a member of the General Dynamics team provides F&M with the opportunity to expand our business base with established customers as well as pursue new opportunities world wide," said Dana Edward Caro, President F&M Manufacturing.

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/.

More information about F&M Manufacturing can be found on the Internet at http://www.rst.com/.

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