August 24, 2005 - General Dynamics Ordnance and Tactical Systems, a business unit of General Dynamics, has been awarded a five-year contract to supply small-caliber ammunition to the U.S. armed forces by the U.S. Army Field Support Command, Rock Island, Ill.

The initial award under the contract is for $171 million for approximately 300 million rounds. The contract has a total potential value of approximately $1.2 billion, if all options are exercised.

This contract establishes General Dynamics as a second-source prime contractor for the production of various types of 5.56mm, 7.62mm and .50 caliber ammunition. The company is currently a leading supplier of medium- and large-caliber ammunition and bomb bodies to U.S. forces.

"General Dynamics is pleased to be selected for this critical role of providing small caliber ammunition to the U. S. soldier. With our successful track record as a leading prime contractor for medium- and large- caliber ammunition, we look forward to delivering the highest-quality ammunition to U.S. warfighters in the most timely and cost-efficient manner," Michael S. Wilson, president of General Dynamics Ordnance and Tactical Systems, said.

General Dynamics Ordnance and Tactical Systems will be the prime systems contractor and logistics manager for the program, with its St. Marks Powder subsidiary providing BALL POWDER propellant.

A team of domestic and international partners will support General Dynamics Ordnance and Tactical Systems, including Olin Corporation's Winchester Division; SNC Technologies Inc. of Canada; Israel Military Industries Ltd. (IMI); and General Dynamics Santa Barbara Sistemas, Madrid, Spain.