Jet Aviation fixed base operations (FBO)
General Dynamics

2941 Fairview Park Drive, Suite 100
Falls Church, Virginia 22042-4513


June 3, 2003
Contact: Rob Doolittle
Tel: (703) 876-3199

General Dynamics Wins U.S. Army Common Hardware/Software III Contract
Program has potential value of $2 billion

TAUNTON, Mass. – General Dynamics C4 Systems, a business unit in the General Dynamics Information Systems and Technology group, has been awarded the U.S. Army’s Common Hardware/Software III (CHS-3) contract to provide commercial and rugged computers, network hardware equipment, power subsystems, peripheral devices and commercial software to U.S. Department of Defense customers worldwide. The indefinite delivery/indefinite quantity (ID/IQ) contract has a potential value of $2 billion over its 10-year life.

Through this program, General Dynamics will provide Army, Marine Corps and Air Force tactical computer users with next-generation commercial and ruggedized workstations, plus associated hardware and software. All other federal agencies are also eligible to purchase computer products and services under the contract.

The contracting authority is the U.S. Army Aviation and Missile Command (AMCOM) in Redstone Arsenal, Huntsville, Ala., managed by the Project Manager Army Tactical Operations Centers/Air and Missile Defense Command and Control Systems (PM-TOC/AMDCCS).

“We are proud to be chosen as the prime contractor for the U.S. Army’s Common Hardware/ Software III program,” said Chris Marzilli, vice president of commercial hardware systems for General Dynamics C4 Systems. “Under CHS-3 we will continue to bring the very latest industry advances to address the Department of Defense’s transformation objectives, and to back all purchases with comprehensive global warranty service through strategically positioned forward repair centers.”

General Dynamics C4 Systems is the prime contractor for the Army’s precursor CHS-2 effort and is performing in the ninth year of that program’s 10 option years. General Dynamics will continue to provide equipment and software under the CHS-2 program until 2005. The total value of the CHS-2 contract since award in 1995 now stands at $888 million.

As the prime contractor, General Dynamics provides a complete hardware suite and associated software for integration into major Army command and control systems. In addition, the company provides program management and user support with extensive testing and integration. CHS-3 uses commercial-off-the-shelf architectures as the foundation for ruggedizing tactical computing platforms for the digitized Army. Military users get access to the same power and performance levels available to their commercial counterparts.

General Dynamics’ core team members for CHS-3 are Sun Microsystems, McLean, Va.; Cisco Systems, San Jose, Calif.; and DRS Technologies, Gaithersburg, Md. These companies were carefully chosen to satisfy the ambitious command and control on-the-move requirements of the current, interim and objective forces.

At the time of the announcement of the CHS-3 contract award, General Dynamics also received an initial $8.3 million delivery order. The order finances the packaging and qualification of new products to be offered, including a new ruggedized handheld computer, the latest Sun UltraSPARC IIITM based data servers and Cisco fast ethernet switches, a next generation Multiple Processor Unit (MPU), and state-of-the-art flat panel displays and printers.

General Dynamics C4 Systems provides secure command, control, computing, communication and information solutions that integrate custom-developed and commercial off-the-shelf products for the military and commercial markets. It designs, integrates, and supports strategic and tactical battlefield communication systems, worldwide. It has pioneered automated approaches to mission planning; battlespace management; targeting/fire support; mapping, charting and geodesy and simulation for its military and commercial customers. It also provides environmentally hardened and special packaging of computer equipment and peripherals for both customer segments.

General Dynamics (NYSE: GD), headquartered in Falls Church, Virginia, employs approximately 57,000 people worldwide and had 2002 revenues of $13.8 billion. The company has leading market positions in land and amphibious combat systems, mission-critical information systems and technologies, shipbuilding and marine systems, and business aviation.

# # #

Any "forward-looking statements" contained in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For more information, see Forward Looking Statement.