General Dynamics UK Acquires Kylmar

June 23, 2010

The acquisition will add Kylmar's sensor and optical surveillance technologies to General Dynamics' military and security portfolio.

LONDON, U.K. /PRNewswire/ -- General Dynamics United Kingdom Ltd., a business unit of General Dynamics (NYSE:GD), acquired the privately held Kylmar (KMC) Ltd., an industry leader in the design and manufacture of sensor and optical surveillance systems for military and security applications. The value of the cash transaction, which is expected to be accretive to General Dynamics' earnings beginning in 2011, has not been disclosed.

The organisation will become part of General Dynamics United Kingdom Limited, enhancing the Company's intelligence, surveillance, targeting and reconnaissance offerings and capabilities provided within the defence, security and resilience markets.

Kylmar is based in Andover, Hampshire, England, and has approximately 50 employees. Kylmar has been supplying electro-optic equipment and systems into the UK military intelligence and Special Forces for counter-terrorism applications for nearly two decades. From its inception, the company has specialised in the design and manufacture of highly capable electro-optical systems deployed for long periods of time, often operating in harsh environments, where high reliability is essential to successful outcomes.

"I am delighted to welcome Kylmar to General Dynamics UK," said Dr Sandy Wilson, General Dynamics UK's president and managing director. "Their optronics expertise and products are at the core of today's defence and security needs and are used in such applications as force protection, IED detection and border/perimeter security. Their capabilities will strengthen General Dynamics UK's C4ISTAR offerings in a wide range of areas and will enable us to expand the breadth of products and services we provide to existing and new customers alike."

Wilson continued, "We acquired Kylmar because it is a high-performance organisation with talented, dedicated, customer-focused employees, and we look forward to them joining General Dynamics UK."

About General Dynamics
General Dynamics United Kingdom Ltd. is a leading player in the UK's knowledge economy and industrial base. Established in the United Kingdom for over 48 years, it employs more than 1,600 people at 10 UK and international facilities. The company is a prime contractor and complex systems integrator, working in partnership with the Ministry of Defence (MoD) and other allies, to grow key intellectual property, skills and capabilities in its UK research facilities and workforce, whilst harnessing world-leading technology.

General Dynamics UK led a key MoD Defence Technology Centre research consortium and, together with a growing C4I export programme, plays a central role manufacturing and developing technology to deliver network enabled capability and ISTAR in the battlespace. Among notable awards, the company has been selected as Preferred Supplier to supply and integrate the next generation of Armoured Fighting Vehicles for the British Army.

General Dynamics, headquartered in Falls Church, Va., USA, employs approximately 91,200 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies.

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