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General Dynamics Awarded $11 Million Modification to Previously Awarded Canadian LAV III Contract

LONDON, Ontario, Canada – The Canadian Department of National Defence has awarded a $10.9 million CAD modification to a previously awarded contract for LAV III vehicles to General Dynamics Land Systems – Canada. General Dynamics Land Systems, the Canadian company’s parent corporation, is a business unit of General Dynamics (NYSE: GD).

Under this contract modification, General Dynamics Land Systems – Canada will manufacture 39 LAV III Engineer vehicles equipped with a remote weapons station, dozer blade, hydraulic tool system and provision for a safe lane marking system. This vehicle will enable field engineers to provide engineering and maintenance services for the LAV III fleet. Tasks will include mobility and counter-mobility maintenance through earthmoving activities and the building of field defences. Deliveries will take place between October 2006 and July 2007.

General Dynamics Land Systems – Canada, located in London, Ontario, Canada is a business unit of General Dynamics Land Systems of Sterling Heights, Michigan. For more than 25 years, approximately 1,500 highly skilled technical personnel have designed, manufactured and delivered a unique family of light armoured vehicles (LAV). More information on the company is available at www.gdlscanada.com.

General Dynamics, headquartered in Falls Church, Va., employs approximately 70,200 people worldwide and had 2004 revenue of $19.2 billion. The company is a market leader in mission-critical information systems and technologies; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and business aviation.

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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.