NASSCO Awarded $2 Million For First Phase of $25 Million Ship Conversion Contract For The U.S. Marine Corps January 6, 2000 -- SAN DIEGO, CA -- National Steel and Shipbuilding Company (NASSCO), a General Dynamics company (NYSE: GD), today announced that it has received $2 million for the first phase of an estimated $25 million contract to convert a U.S. Navy Strategic Sealift Program ship to meet the readiness capabilities of the U.S. Marine Corps. Phase I will include development of design changes, material specifications and planning for the Phase II conversion effort and will begin immediately. The ship to be converted, the USNS Soderman (T-AKR 299), will arrive at NASSCO in the summer of 2000 and work is to be completed by March 1, 2001. The conversion includes adding living quarters for 50 additional personnel, changing the stern ramp to an in-water ramp, and upgrading the helicopter landing deck to an all-weather flight deck, among other changes. The Soderman was originally converted by NASSCO from a commercial containership to a large, medium-speed, roll-on/roll-off (LMSR) vessel and delivered to the Navy in November 1997. Funding for construction of a new LMSR to replace the Soderman in the Navy's combat prepositioning squadron of LMSRs was included in the FY-2001 Defense Appropriations bill approved by Congress in October. "NASSCO is gratified to have been chosen to provide the Marine Corps with the third ship for its enhanced Maritime Prepositioning Force," said Richard Vortmann, President of NASSCO. "Conversion of an existing sealift shift will add to the Marines' readiness capability much sooner than construction of a new ship." The Soderman currently carries U.S. Army equipment, vehicles and supplies and has been strategically prepositioned near potential areas of conflict such as Bosnia and the Persian Gulf. It will fulfill this same role for the Marine Corps, carrying a primary cargo of vehicles, including armored personnel carriers, tanks, tractor-trailers and high-mobility military vehicles. The Soderman is named for Army Private First Class William A. Soderman, a World War II recipient of the Medal of Honor. NASSCO (www.nassco.com), a General Dynamics Company, is the only West Coast shipyard capable of building and repairing large ocean-going vessels for the Navy and commercial customers. The shipyard employs approximately 3,500 people. General Dynamics (www.generaldynamics.com) of Falls Church, Virginia has leading market positions in shipbuilding and marine systems, land and amphibious combat systems, information systems, and business aviation. The corporation employs approximately 44,000 people and has annualized sales of approximately $10 billion.

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