General Dynamics Reports Strong Earnings, Backlog Growth in Second Quarter 2008

– EPS from continuing operations increases 26 percent
– Sales, earnings and operating margins increase company-wide
– Full-year EPS guidance increased

FALLS CHURCH, Va. – General Dynamics (NYSE: GD) today reported second-quarter 2008 earnings from continuing operations of $641 million, or $1.60 per share on a fully diluted basis, compared with 2007 second-quarter earnings from continuing operations of $518 million, or $1.27 per share fully diluted. Revenues grew to $7.3 billion in the quarter, a 10.8 percent increase over second-quarter 2007 revenues of $6.6 billion. Net earnings were equal to earnings from continuing operations of $641 million.

WEBCAST INFORMATION: General Dynamics will webcast its second-quarter securities analyst conference call, scheduled for 11:30 a.m. Eastern Time on Wednesday, July 23, 2008. The webcast will be a listen-only audio event, available at www.generaldynamics.com. An on-demand replay of the webcast will be available by 3 p.m. July 23 and will continue for 12 months. To hear a recording of the conference call by telephone, please call 888-286-8010 (international: 617-801-6888); passcode 16780091. The phone replay will be available from 3 p.m. July 23 until midnight July 30, 2008.

General Dynamics Information Technology Completes Acquisition of ViPS, Inc.
 

FAIRFAX, Va. – General Dynamics Information Technology, a business unit of General Dynamics (NYSE: GD), today completed its previously announced purchase of ViPS, Inc., from HLTH Corporation (NASDAQ: HLTH). The transaction was valued at approximately $225 million.