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General Dynamics (ticker: GD, exchange: New York Stock Exchange (.N)) News Release - 5-Oct-2006

General Dynamics Awarded USD $27 Million Contract to Supply RG-31 Mk5 Mine Protected Vehicles to the U.S. Army

LONDON, Ontario, Canada, Oct. 5 /PRNewswire-FirstCall/ -- The U.S. Army Tank Automotive and Armaments Command (TACOM), in support of the Program Executive Office for Combat Support and Combat Service Support (PEO CS&CSS), has awarded a contract for USD$27.2 million to General Dynamics Land Systems- Canada to provide 60 RG-31 Mk5 Mine Protected Vehicles, with an option for 34 additional vehicles. General Dynamics Land Systems, the Canadian company's parent corporation, is a business unit of General Dynamics (NYSE: GD).

The contract was signed through the Canadian Commercial Corporation, a Crown Agency of the Canadian Government. Under this contract, General Dynamics Land Systems-Canada will provide the program management while BAE Land Systems OMC of South Africa will manufacture the vehicles. Deliveries will occur from January to April in 2007.

The RG-31 Mk5 is the latest version of the highly successful RG-31 family. The Mk5 delivers a significant increase in power and payload to meet emerging requirements. In service with forces around the world, the RG-31 is a highly effective multi-role armored vehicle capable of a variety of military applications. Offering enhanced mine blast resistance, as well as protection against both improvised explosive devices and ballistic threats, these vehicles will be used by the U.S. Army in support of ongoing activities.

General Dynamics Land Systems-Canada previously delivered 148 RG-31 vehicles to the U.S. Army in 2005 and will soon be completing delivery of 75 vehicles for the Canadian Forces. In addition, the vehicles have been extensively used by NATO forces in the former Yugoslavia, as well as by the United Nations in Lebanon, Georgia, Syria, Bosnia and Herzegovina, and Kosovo.

General Dynamics Land Systems-Canada, located in London, Ontario, Canada is a business unit of General Dynamics Land Systems of Sterling Heights, Michigan. For almost 30 years, more than 1,500 highly skilled technical employees have designed, manufactured and delivered to global customers a unique family of light armored vehicles (LAV). More information on the company is available at http://www.gdlscanada.com.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 81,900 people worldwide and had 2005 revenue of $21.2 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. More information can be found online at http://www.generaldynamics.com.

SOURCE  General Dynamics Land Systems-Canada
    -0-                             10/05/2006
    /CONTACT:  Ray Lewis of General Dynamics, +1-703-876-3195, Fax:
+1-703-876-3270, or rlewis@gd.com/
    /Web site:  http://www.gdlscanada.com
                http://www.generaldynamics.com/
    (GD)

CO:  General Dynamics Land Systems-Canada; General Dynamics
ST:  Canada, Michigan, Virginia
IN:  ARO
SU:  CON

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6382 10/05/2006 10:00 EDT http://www.prnewswire.com