FOR IMMEDIATE RELEASE

CONTACT:

CONTACT:

NEWPORT NEWS, VA -- April 14, 1999 – Newport News Shipbuilding (NYSE: NNS) said today that the Department of Defense ("DoD") announced that it does not support the proposed General Dynamics Corp. (NYSE: GD) acquisition of Newport News.

On February 15, Newport News sought a formal determination by DoD regarding General Dynamics’ unsolicited February 10 offer to acquire Newport News. Under the terms of the NNS merger agreement with Avondale, announced January 19, Newport News could not discuss or entertain the General Dynamics’ offer unless, among other things, it had a reasonable chance of closing.

"Given that DoD does not support a General Dynamics-Newport News combination, we are unable to conclude that a merger with General Dynamics could close," said William P. Fricks, chairman and chief executive officer of Newport News. "Accordingly, Newport News will proceed with the Avondale transaction, which we continue to believe makes sound strategic and financial sense, and which has received antitrust clearance from the Department of Justice."

Fricks continued: "The strategic combination with Avondale creates a broad-based shipbuilding company capable of designing, building and maintaining every ship in the U.S. Navy fleet. It will deliver substantial efficiencies for our U.S. Navy customer, position Newport News for future growth and deliver significant value for our shareholders."

Newport News Shipbuilding designs and constructs nuclear-powered aircraft carriers and submarines for the U.S. Navy and provides life cycle services for ships in the Navy fleet. The company employs 18,000 people and has annual revenues of approximately $1.8 billion.