General Dynamics UK Acquires Kylmar

By General Dynamics United Kingdom Limited, PRNE
Monday, June 21, 2010

LONDON, June 22, 2010 - General Dynamics United Kingdom Limited, a business unit of General
Dynamics (NYSE: GD), today acquired the privately held Kylmar (KMC) Limited,
an industry leader in the design and manufacture of sensor and optical
surveillance systems for military and security applications. The value of the
cash transaction, which is expected to be accretive to General Dynamics'
earnings beginning in 2011, has not been disclosed.

The organisation will become part of General Dynamics United Kingdom
Limited, enhancing the Company's intelligence, surveillance, targeting and
reconnaissance offerings and capabilities provided within the defence,
security and resilience markets.

Kylmar is based in Andover, Hampshire, England, and has approximately 50
employees. Kylmar has been supplying electro-optic equipment and systems into
the UK military intelligence and Special Forces for counter-terrorism
applications for nearly two decades. From its inception, the company has
specialised in the design and manufacture of highly capable electro-optical
systems deployed for long periods of time, often operating in harsh
environments, where high reliability is essential to successful outcomes.

"I am delighted to welcome Kylmar to General Dynamics UK," said Dr Sandy
Wilson
, General Dynamics UK's president and managing director. "Their
optronics expertise and products are at the core of today's defence and
security needs and are used in such applications as force protection, IED
detection and border/perimeter security. Their capabilities will strengthen
General Dynamics UK's C4ISTAR offerings in a wide range of areas and will
enable us to expand the breadth of products and services we provide to
existing and new customers alike."

Wilson continued, "We acquired Kylmar because it is a high-performance
organisation with talented, dedicated, customer-focused employees, and we
look forward to them joining General Dynamics UK."

About General Dynamics

General Dynamics United Kingdom Limited is a leading player in the UK's
knowledge economy and industrial base. Established in the United Kingdom for
over 48 years, it employs more than 1,600 people at 10 UK and international
facilities. The company is a prime contractor and complex systems integrator,
working in partnership with the Ministry of Defence (MoD) and other allies,
to grow key intellectual property, skills and capabilities in its UK research
facilities and workforce, whilst harnessing world-leading technology.

General Dynamics UK led a key MoD Defence Technology Centre research
consortium and, together with a growing C4I export programme, plays a central
role manufacturing and developing technology to deliver network enabled
capability and ISTAR in the battlespace. Among notable awards, the company
has been selected as Preferred Supplier to supply and integrate the next
generation of Armoured Fighting Vehicles for the British Army. For further
information visit www.generaldynamics.uk.com.

General Dynamics, headquartered in Falls Church, Va., USA, employs
approximately 91,200 people worldwide. The company is a market leader in
business aviation; land and expeditionary combat systems, armaments and
munitions; shipbuilding and marine systems; and information systems and
technologies. More information about General Dynamics is available online at
www.gd.com.

Andrew Boyle, General Dynamics United Kingdom Limited, +44-20-7932-3445, andrew.boyle at generaldynamics.uk.com

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