General Dynamics and Rheinmetall Defence Form Tank Ammunition Joint Venture Company

New venturenamed Defense Munitions International, LLC (DMI)

ST.PETERSBURG, Fla. / Düsseldorf, Germany - General Dynamics Ordnanceand Tactical Systems, a business unit of General Dynamics (NYSE: GD), andRheinmetall Defence of Düsseldorf, Germany, have formed a tankammunition joint venture company named Defense Munitions International, LLC(DMI). The new company will develop and market new and existing 120mm kineticenergy and multi-purpose cartridges for the U.S. and international tankammunition markets.

DMIcombines the partners’ full range of development, production and salesactivities of 120mm tactical ammunition for main battle tanks. By combiningtheir activities in DMI, the two partners aim to broaden their global marketaccess, expand production efficiencies and selectively engage in jointdevelopment work. Select cartridge types and 120mm practice ammunition will notbe part of this joint venture arrangement.

Thisforward-looking joint venture is the culmination of the longstandingpartnership between General Dynamics and Rheinmetall Defence. For over a decadethe two companies have worked together on numerous 120mm ammunition projects,such as the development and production of the KEW-A1 and KEW-A2 advancedtungsten kinetic energy ammunition for Abram’s users worldwide.

Additionally,Rheinmetall has fielded the DM 63 tungsten kinetic energy round for the GermanBundeswehr and other NATO users of Leopard tanks. Under the joint venture, DMIwill continue these efforts while working to add further improvements to theKEW family. The company will also develop and produce advanced multi-purposeammunition, leveraging the success of Rheinmetall’s DM 11 cartridge, which wasrecently fielded by the United States Marine Corps in Afghanistan.

As ArminPapperger, member of the Executive Board of Rheinmetall AG, explains, “This pioneeringjoint venture is a transatlantic extension of our chosen policy ofinternationalization. Thanks to DMI, we will be able to respond better to ourglobal customer base’s desire for an increased product portfolio in the futureas well as providing an expanded set of services. Our strategic relationshipwith General Dynamics, a joint venture for marketing and producing tacticaltank ammunition, is the logical outcome of over ten years of working together successfully.By joining forces, we aim to take the lead in the global market for tankammunition.”

MichaelWilson, president of General Dynamics Ordnance and Tactical Systems, said, “We areexcited about the creation of this joint venture with Rheinmetall. Oursuccessful partnership over the last decade lays the foundation for this jointventure. Under DMI, we will continue to build upon that success within ourexisting customer segments while we expand our product offerings, including theRheinmetall DM 11 multipurpose cartridge, recently fielded by the Marines, whichadds another powerful capability to the warfighter’s arsenal.”

About General DynamicOrdnance and Tactical Systems

General Dynamics Ordnance and Tactical Systems, a businessunit of General Dynamics, is a world leader in the manufacture of large,medium- and small-caliberdirect andindirect-fire munitions, mortar weapon systems and components, artilleryprojectiles, as well as hybrid, extruded and BallPowder® propellants.The companyalso manufactures precision metal components for missiles, rockets and bombs;provides explosive load, assembly and pack services for a variety of munitions,tactical missile and rocket programs; and designs and produces shaped chargeand penetrator warheads. More information is available online at www.gd-ots.com.

About Rheinmetall Defence

Rheinmetall is one of themost trusted names in the international defence and security technology sector.With some 10,000 employees, Rheinmetall Defence had sales in 2011 of around €2billion (US$2.6 billion).  In the weaponsand munitions segment, the Rheinmetall Group supplies a wide array of medium-and large-calibre products. These range from the automatic cannon for theEurofighter and medium-calibre guns for naval vessels and infantry fightingvehicles to main armament for artillery systems and main battle tanks,including the accompanying ammunition. More information is available online at www.rheinmetall-defence.com.