General Dynamics News - January 10, 2007

MADRID – General Dynamics Santa Bárbara Sistemas was awarded a $424.5 million contract in late December 2006 by the Spanish Army for the supply of Long Range (LR) SPIKE Missile Systems. General Dynamics Santa Bárbara Sistemas is one of four companies that comprise General Dynamics European Land Combat Systems, a business unit of General Dynamics (NYSE: GD).

General Dynamics Santa Bárbara Sistemas, the prime contractor, has an agreement with the Israeli company RAFAEL for the manufacture of the systems. Approximately 60 percent of the program work will be completed in Spain, where General Dynamics Santa Bárbara Sistemas will manufacture system components and perform final assembly and testing.

The SPIKE-LR is a lightweight, shoulder-launched multi-purpose missile system with a range of up to 4,000 meters. The contract calls for the manufacture of 260 launchers and 2,600 missiles, plus integrated logistics support (ILS). Work under the contract is expected to be complete by 2014.

General Dynamics Santa Bárbara Sistemas, which employs 2,000 people in nine facilities in Spain, is the Spanish Army’s main supplier of land combat vehicles, artillery systems and ammunition. The company has production contracts for the Spanish MBT Leopardo 2E, the Pizarro Infantry Fighting Vehicle and the 155/52 SIAC Howitzer, and its products are marketed in 47 countries (www.gdsbs.com). Since October 2003, GD SBS is part of the General Dynamics European Land Combat Systems group (ELCS).

General Dynamics, headquartered in Falls Church, Va., employs approximately 81,100 people worldwide, and expects 2006 revenues of approximately $24 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. More information can be found online at www.generaldynamics.com.