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NAVY AWARDS $4.2 BILLION CONTRACT
FOR NEW ATTACK SUBMARINES
NEWPORT NEWS, Va., October 1, 1998 – Newport News Shipbuilding
(NYSE: NNS) and Electric Boat Corporation – a subsidiary of General Dynamics
(NYSE: GD) – under its teaming agreement have been awarded a contract
by the U.S. Navy to jointly build the New Attack Submarine (NSSN). The
contract is valued at $4.2BN and was awarded on September 30, 1998.
"The NSSN contract represents another important addition to our backlog,"
said Chairman and Chief Executive Officer William P. Fricks. "All of Newport
News' core programs – carrier construction, submarine construction, and
overhaul and repair – are now supported by strong backlogs." With the
addition of the NSSN contract, Newport News' backlog will increase to
approximately $5.2 billion.
Newport News has been building nuclear
submarines for the Navy for nearly 40 years. It is the lead design yard
for both the Los Angeles- and Seawolf-class of submarines.
In 1997, Newport News and Electric Boat entered into a teaming agreement
to build the new class of submarines. With the execution of the teaming
agreement, NNS, together with Electric Boat, will each construct certain
portions of the New Attack Submarine and perform final assembly, testing,
and outfitting. Final delivery will alternate between the two companies.
The lead ship of the class, recently named Virginia, will be delivered
in 2004.
Newport News Shipbuilding is America’s
premier shipbuilding company with annual revenues of approximately $1.7
billion and 18,000 employees. The company is the leader in the design
and construction of nuclear-powered aircraft carriers and submarines for
the U. S. Navy.
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