NASSCO Begins Construction on First of Two Trailerships for TOTE June 4, 2001 -- SAN DIEGO, CA -- National Steel and Shipbuilding Company (NASSCO), a wholly owned subsidiary of General Dynamics (NYSE: GD), today began construction on the first of two roll-on, roll-off (RO/RO) ships for Totem Ocean Trailer Express, Inc. (TOTE). The ships are being built for TOTE's Tacoma-to-Anchorage service. Ship deliveries are scheduled for October 2002 and April 2003. "This is the first commercial dry cargo vessel to be built in the United States in 10 years," said Richard Vortmann, President of NASSCO. "We applaud TOTE for building these ships under the provisions of the Jones Act, legislation that has helped preserve strong U.S. shipping and shipbuilding industries for nearly three-quarters of a century. "The TOTE ships will be the first to benefit from nearly $85 million in capital investments NASSCO is making to its shipyard," Vortmann added, "including the addition of two 300-ton cranes." He said the heavy-lift cranes and other new equipment will allow NASSCO production teams to assemble and lift much larger blocks, increasing efficiencies in the use of manpower and materials and reducing the time required to build the ships. The new ships, designated the Orca Class, will be 839 feet long and have a beam of 118 feet. The ships will carry 600 cargo trailers and 200 autos, a 50 percent capacity improvement over existing ships. The ships are designed for the rigors of Alaskan service, powered by twin propulsion plants, each having its own propeller and rudder system. They will be the first ships in the U.S. powered by an integrated diesel-electric propulsion system, and will achieve speeds up to 24 knots. Robert Magee, TOTE President and CEO, added, "TOTE has been the recipient of two environmental awards for the design of the Orca Class vessels. In July 2000, the States/British Columbia Oil Spill Task Force awarded its Legacy Award 2000 to TOTE in honor of its commitment to the environment and vessel safety by designing and building new cargo vessels with state-of-the-art oil spill prevention and marine safety features." The governors of Alaska, Washington, Oregon, and California and the Premier of British Columbia created the Oil Spill Task Force Legacy Award in 1989 as a means to recognize and support implementation of model spill prevention, preparedness, and response programs. "In September 2000, TOTE was awarded the Alaska Department of Environmental Conservation Commissioner's Pollution Prevention Award 2000," Magee added. "The award noted that Totem Ocean Trailer Express had commissioned ships that carry fuel in double-walled tanks, use a diesel-electric propulsion system, and feature a number of other attributes that go beyond what is required by law to protect Alaska's air and water. The Commissioner said, ‘By doing so, TOTE has set the bar for many other vessels that travel in Alaska's waters.’" NASSCO (www.nassco.com) 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 3,000 people in San Diego. 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 46,000 people worldwide and anticipates 2001 sales of approximately $11.5 billion. Totem Ocean Trailer Express, Inc. (TOTE) (www.totemocean.com) is a privately owned Alaska corporation operating a Roll-on/Roll-off (Ro/Ro) cargo steamship service to Alaska between the ports of Anchorage and Tacoma, WA.

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