General Dynamics Announces NASSCO Contract for Three Double-Hull Crude Oil Tankers for BP September 15, 2000 -- SAN DIEGO, CA -- General Dynamics (NYSE: GD) today announced that its wholly owned subsidiary, National Steel and Shipbuilding Company (NASSCO), has received a $630 million contract from BP for the construction of three double-hull tankers for the carriage of crude oil from Valdez, Alaska, to U.S. West Coast ports. The contract includes options for three additional vessels. The design will put strong emphasis on environmental safety, including redundant diesel-electric propulsion systems in independent engine rooms, two propellers, and twin rudders. The ship will incorporate the latest, proven technology in environmental protection, ship navigation, and cargo control systems. The new 185,000 DWT double-hull design will have a length of 287 meters (941 feet), and a beam of 50 meters (164 feet). Capacity will be approximately 1.3 million barrels at a design draft of 18.75 meters (61.5 feet). "NASSCO has a long, successful history of building commercial tankers, and we are extremely pleased to have been awarded this construction contract for Jones Act-qualified ships from one of the world's leading oil producers," said NASSCO President Richard Vortmann. "It reflects NASSCO's growing reputation for producing technically creative, cost-effective designs for both Navy and commercial customers. It also is a great tribute to the exceptional gains in quality and productivity our employees have made in recent years," he added This new contract will keep approximately 1,000 NASSCO workers employed over the life of the contract. Construction on the first ship will begin in early 2002 with the first delivery in the fourth quarter of 2003, and subsequent deliveries in late 2004 and 2005. NASSCO (www.nassco.com.) is currently building two commercial roll-on/roll-off vessels and a series of strategic sealift ships for the U.S. Navy. The shipyard employs approximately 3,000 people at its San Diego facilities. 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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