UK Ministry of Defence Signs Scout SV Contract With General Dynamics UK

LONDON, July 1, 2010 - The UK Ministry of Defence (MoD) has signed a contract with South
Wales-based General Dynamics UK to deliver the Specialist Vehicle (SV) for
the British Army. The demonstration phase, which has been activated by the
signature of the contract by Peter Luff MP, Parliamentary Under Secretary of
State and Minister for Defence Equipment, Support & Technology, is worth 500m
pounds Sterling. The demonstration phase will see the development of seven
prototypes for the Scout reconnaissance vehicle and supporting variants built
on the ASCOD SV Common Base Platform, as well as providing associated
training equipment.

ASCOD SV, which is a modified military off the shelf (MMOTS) platform
already proven in service with a number of NATO allies, will replace the
ageing CVR(T) fleet and will introduce new vehicle roles.

"The MoD chose General Dynamics UK's ASCOD SV because it guaranteed the
best protection for British troops, the best value for money for the British
taxpayer, the best deal for the UK Industrial base, the best integrated
solution, and the best growth potential for the British Army to combat future
threats throughout the 30-year lifespan of the vehicle," commented Dr. Sandy
Wilson, president and managing director of General Dynamics UK.

"I am particularly proud that this vehicle has been designed in Britain
by British engineers and will provide jobs for British workers, as well as
saving the lives of British military personnel wherever they may be in the
world over the next 30 or so years," continued Dr. Wilson. "My team and I at
General Dynamics UK look forward to working in partnership with the MoD over
the next several years to deliver the vehicle the British Army deserves and
needs in order to do their difficult jobs in the safest and most effective
manner possible."

Key advantages that the ASCOD SV delivers to the MoD include:

    - A modern drivetrain, which is good for the 30-year life of
      the vehicle and thereby obviates the need for a mid-life upgrade;
    - Load-carrying potential of up to 42 tonnes with a growth path
      to 45 tonnes, which provides the ability to meet future threats likely
      to appear over its entire 30-year life, as well as carry its heaviest
      variants;
    - A Common Base Platform that will support variants such as an
      Armoured Personnel Carrier, Protected Mobility vehicle, a Repair
      vehicle and a Recovery vehicle;
    - An open electronic architecture, available across all
      variants, which will make the SV fleet easier to maintain, ease the
      training burden, and play a key role in lowering costs throughout the
      life of the vehicles; and
    - An advanced turret design which, because of its internal
      space and leading ergonomics, delivers improved survivability and
      fightability for its crew. General Dynamics UK has sub-contracted
      Lockheed Martin UK Ampthill to produce the turret.

ASCOD SV also has high export potential, as required under the Defence
Industrial Strategy.

The trials of the prototype vehicles are expected to begin with the Army
no later than 2013. Once the demonstration phase is successfully completed,
the MoD will be in a position to proceed to the Manufacture Phase and begin
production of these battle-winning vehicles.

For all media materials including broadcast quality B-roll and Video log
on to www.generaldynamics.uk.com/ASCODSV/

About General Dynamics

General Dynamics United Kingdom Limited, a wholly owned subsidiary of
General Dynamics (NYSE: GD), is a leading player in the UK's knowledge
economy and industrial base. Established in the United Kingdom for over 48
years, it employs over 1,650 people at 11 UK and international facilities. A
prime contractor and complex systems integrator, working in partnership with
the Ministry of Defence (MoD) and other allies, growing 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 C4ISTAR in the battlespace. General Dynamics UK is also the
leading provider of Force Protection to the MoD. For further information
visit www.generaldynamics.uk.com

General Dynamics, headquartered in Falls Church, Virginia, 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 the company is available on the Internet
at www.generaldynamics.com.

Andrew Boyle, General Dynamics United Kingdom, +44(0)20-7932-3445, andrew.boyle at generaldynamics.uk.com