Re Agreement

GM Reaches Agreement With General Dynamics to Sell GM Defense 
 
    NEW YORK, Dec. 19 /PRNewswire/ --  
General Motors Corporation (NYSE: GM, GMH) has reached definitive agreement 
with General Dynamics Corporation (NYSE: GD) for the sale of GM Defense 
operations, its Light Armored Vehicle (LAV) business, for approximately US 
$1.1 billion in cash.  GM will retain its Military Trucks business, which is 
located in Troy, Michigan. 
    The sale of GM Defense has been approved by the boards of directors of 
both companies and is subject to regulatory review.  The transaction is 
expected to close in the first quarter of 2003. 
    'This transaction secures the best possible long-term future for the GM 
Defense business and its employees, while contributing significantly to GM's 
cash and liquidity objectives,' said GM Chairman Jack Smith. 
    'I am very excited about the growth opportunities for GM Defense as part 
of a leading global defense company like General Dynamics,' said Bill 
Pettipas, GM Defense Executive Director.  'The ability to leverage General 
Dynamics' market-leading technologies with our great vehicle platform can only 
take our business to greater strength.' 
    GM Defense, headquartered in London, Ontario, Canada, is a group of  
GM-owned business units engaged in the design and production of LAVs and 
supporting turret systems for military use.  The group comprises research, 
design, and manufacturing facilities in London, Ontario; Goleta, California; 
Adelaide, Australia and Kreuzlingen, Switzerland, the birthplace for the Light 
Armored Vehicle (LAV) technology used today by GM Defense around the world.  
    GM Defense employs approximately 2,400 people.  As the leading worldwide 
producer of LAVs, GM Defense has vehicles in service with the United States 
Marine Corps, the Canadian Army, and with other military forces around the 
globe.  The operations' largest order -- the U.S. Army's STRYKER Brigade 
Combat Team program -- is currently being supplied through an established 
joint venture with General Dynamics Land Systems.  
    General Motors, the world's largest vehicle manufacturer, designs, builds 
and markets cars and trucks worldwide, and has been the global automotive 
sales leader since 1931.  GM employs about 350,000 people globally.  More 
information on General Motors can be found at www.gm.com .  More information 
about GM Defense can be found at www.gm-defense.com . 
    General Dynamics, headquartered in Falls Church, Virginia, employs 
approximately 54,000 people worldwide and anticipates 2002 revenues of 
approximately $14 billion.  The company has leading market positions in land 
and amphibious combat systems, mission-critical information systems and 
technologies, shipbuilding and marine systems, and business aviation.  
 
SOURCE  General Motors Corporation 
    -0-                             12/19/2002 P 
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