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Nassco Delivers First of Class Product Carrier

Maritime Activity Reports, Inc.

January 13, 2009

General Dynamics Nassco, a wholly-owned subsidiary of General Dynamics (NYSE: GD), delivered the first ship of its new line of product carriers to U.S. Shipping Partners on Jan. 9.

Nassco began constructing the Golden State in August 2007.  At a length of 600 ft, the ship has a cargo capacity of approximately 331,000 barrels and will be used to carry petroleum and chemical products between U.S. ports.  The ship is named in honor of the State of California.

“Nassco completed the Golden State six months ahead of our original schedule, under budget, while simultaneously meeting or exceeding all quality requirements,” said Fred Harris, president of General Dynamics Nassco.  “The completeness and superb material condition of this first-of-class ship reflects an outstanding start to the Product Carrier program at Nassco.”

Nassco also began construction of its fourth product carrier, which will be named Empire State in honor of the State of New York.  The shipyard is scheduled to lay the Empire State’s keel in May and deliver the ship to U.S. Shipping Partners in the first quarter of 2010.  The San Diego shipyard is under contract to build a total of nine product carriers.

(www.nassco.com)

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