General Dynamics NASSCO and TOTE, Inc., Finalize Contract to Build the First LNG-Powered Containerships in the World

 General Dynamics NASSCO and TOTE, Inc., Finalize Contract to Build the First
                   LNG-Powered Containerships in the World

PR Newswire

SAN DIEGO, Dec. 4, 2012

SAN DIEGO, Dec. 4, 2012 /PRNewswire/ --General Dynamics NASSCO, a wholly
owned subsidiary of General Dynamics (NYSE: GD), announced today that it has
finalized a contract with TOTE, Inc., for the design and construction of two
3,100 TEU LNG-powered containerships, setting a new benchmark in green ship
technology. When completed the 764-foot-long containerships are expected to
be the largest ships of any type in the world primarily powered by liquefied
natural gas (LNG). Construction of the first containership is scheduled to
begin in the first quarter of 2014, with delivery to occur by the fourth
quarter of 2015; the second ship will be delivered in the first quarter of
2016. The contract between NASSCO and TOTE Shipholdings, Inc., a subsidiary
of TOTE, Inc., includes options for three additional ships.

The ships will be designed by DSEC, a subsidiary of Daewoo Shipbuilding &
Marine Engineering (DSME), located in Busan, South Korea. The design will be
based on proven containership-design standards and will include DSME's
patented LNG fuel-gas system and a MAN ME-GI dual fuel slow speed engine.
NASSCO has successfully partnered with DSEC previously for the design and
construction of five State-class product tankers which currently operate in
the U.S. Jones Act market. All of the containerships will be constructed at
the NASSCO shipyard in San Diego.

"This project breaks new ground in green ship technology," said Fred Harris,
president of General Dynamics NASSCO. "It adds to our design and production
capabilities and validates our reputation as one of the nation's leading
shipyards for commercial and government new-construction shipbuilding.
Securing this contract has been a real team effort and will help sustain the
jobs of the talented skilled tradesmen and women in our workforce."

The vessels will operate on either fuel oil or gas derived from LNG, which
will significantly decrease emissions while increasing fuel efficiency as
compared to conventionally-powered ships. The LNG-powered containerships will
also include a ballast water treatment system, making them the greenest ships
of their size in the world. The double-hulled ships will operate between
Jacksonville, Fla., and San Juan, P.R.

Anthony Chiarello, President and CEO of TOTE, Inc. said, "This investment
demonstrates our commitment to the people of Puerto Rico and our environment.
These vessels mark a new age of shipping using the best technology in the
world."

For more information about General Dynamics NASSCO, please visit
www.nassco.com.

More information about General Dynamics is available online at
www.generaldynamics.com.

SOURCE General Dynamics NASSCO

Website: http://www.nassco.com
Website: http://www.generaldynamics.com
Contact: Media: Jim Gill, General Dynamics NASSCO, +1-619-544-8860; Investors:
Amy Gilliland, General Dynamics, +1-703-876-3748
 
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