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GENERAL DYNAMICS' BOARD OF DIRECTORS DECLARES SPECIAL DISTRIBUTION OF $20 PER SHARE

 FALLS CHURCH, Va., March 18 /PRNewswire/ -- The board of directors of General Dynamics Corporation (NYSE: GD) declared a special distribution of $20 per share on the company's common stock, payable on April 22, 1993, to shareholders of record at the close of business April 5, 1993.
 As the distribution is being made under the Plan of Contraction adopted by the board in May 1992, shareholders should consult their tax advisers regarding its treatment under the Internal Revenue Code. General Dynamics had 30.9 million shares outstanding as of Dec. 31, 1992.
 Board Chairman William A. Anders said: "Over the past 10 years, just 16 percent of General Dynamics' net earnings have been returned to shareholders in the form of dividends. The other 84 percent -- a total of $2.4 billion before adjustments for inflation -- was reinvested to support this nation's successful efforts to win the Cold War against the Soviet Union. Now, our nation's Defense Industrial Base, which has been built up by decades of shareholder investment, is consolidating rapidly through mergers and acquisitions at a time when realistic opportunities for reinvestment in defense have been reduced dramatically. In addition, past attempts by prime defense contractors to diversify into commercial markets have been characterized by unacceptably high risks and low returns.
 "Therefore, with our requirements for financial strength and future investment amply met, we believe it is appropriate to return excess proceeds from consolidation transactions to their source -- the shareholder," Anders said. "In our view, the shareholder investor is better able than we are to reinvest this capital in America in order to create growth, new jobs and a stronger international competitive edge for our nation.
 "General Dynamics' board will evaluate from time to time whether additional special distributions or stock repurchases are appropriate as we move through the year," Anders said.
 -0- 3/18/93
 /CONTACT: Alvin A. Spivak of General Dynamics, 703-876-3190/
 (GD)


CO: General Dynamics Corporation ST: Virginia IN: ARO SU: DIV

DS -- DC001 -- 7304 03/18/93 08:44 EST
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Publication:PR Newswire
Date:Mar 18, 1993
Words:334
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