Exhibit 99.1

2941 Fairview Park Drive	News
Suite 100
Falls Church, VA 22042-4513
www.generaldynamics.com

January 23, 2008

Contact: Rob Doolittle

Tel: 703 876 3199

Fax: 703 876 3555

rdoolitt@generaldynamics.com

General Dynamics Reports Strong Earnings, Revenue Growth in Fourth Quarter 2007

• Earnings from Continuing Operations Grow 24.8 percent

• Revenues Increase 15.4 Percent

FALLS CHURCH, Va. – General Dynamics (NYSE: GD) today reported financial results for the fourth quarter and full year of 2007, which ended December 31.

Fourth-Quarter Results

General Dynamics’ earnings from continuing operations in the fourth quarter 2007 were $578 million, or $1.42 per share on a fully diluted basis, compared to 2006 fourth-quarter earnings from continuing operations of $463 million, or $1.13 per share fully diluted. Revenue for the fourth quarter 2007 was $7.5 billion, compared to fourth-quarter 2006 revenue of $6.5 billion.

Full-year 2007 Results

Earnings from continuing operations for 2007 were $2.1 billion, or $5.10 per share on a fully diluted basis, compared with $1.7 billion, or $4.20 fully diluted, in 2006. This is an increase of 21.6 percent. Revenue for the full year 2007 was $27.2 billion, compared with $24.1 billion for 2006, an increase of 13.2 percent.

Cash

Net cash provided by operating activities from continuing operations totaled $1.07 billion in the quarter and $2.95 billion for the year. Free cash flow from operations, defined as net cash provided by operating activities from continuing operations less capital expenditures, was $891 million in the quarter and $2.48 billion for the year.

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Backlog

The company’s funded backlog grew by $292 million in the fourth quarter of 2007, to $37.2 billion. Compared to year-end 2006, funded backlog increased $3.2 billion. Total backlog at year-end 2007 was $46.8 billion.

Margins

Operating margins for the fourth quarter 2007 increased to 11.6 percent from 10.8 percent for fourth quarter 2006. For the full year, company-wide operating margins increased by 50 basis points over 2006, to 11.4 percent.

Net Earnings

General Dynamics’ net earnings for the fourth quarter of 2007 were $579 million, compared to fourth-quarter 2006 net earnings of $408 million, which included charges in discontinued operations related to the anticipated sale of the company’s coal mining operations. Net earnings for the full year were $2.07 billion in 2007, compared to $1.86 billion in 2006 which included a gain in discontinued operations from the sale of the company’s aggregates business.

“General Dynamics generated solid returns in the fourth quarter of 2007,” said General Dynamics Chairman and Chief Executive Officer Nicholas D. Chabraja. “Revenues and earnings grew substantially over the fourth quarter of 2006, and operating margins increased 80 basis points, to 11.6 percent, when compared to the fourth quarter 2006. Free cash flow from operations in the quarter was $891 million, or more than 150 percent of net earnings.

“Highlights of the quarter included significant revenue and earnings growth in the Combat Systems group on strong combat-vehicle sales, including Abrams tank modernization and Stryker production, as well as significant sales and earnings increases in the Aerospace group,” Chabraja said. “Marine Systems once again improved margin rates, on a modest increase in sales volume, contributing to another year of strong performance across the corporation. Notably, total backlog in the Information Systems and Technology segment grew $300 million on the strength of $3 billion in orders, reflecting a book-to-bill ratio of 1.2.

“Given our strong performance in 2007, the record backlog and strong support for our programs, we expect 2008 earnings to be in the range of $5.55 to $5.65 per share, fully diluted,” Chabraja said.

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General Dynamics, headquartered in Falls Church, Virginia, employs approximately 83,500 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about the company is available on the Internet at www.generaldynamics.com.

Certain statements made in this press release, including any statements as to future results of operations and financial projections, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on management’s expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. Additional information regarding these factors is contained in the company’s filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.

All forward-looking statements speak only as of the date of this press release. The company does not undertake any obligation to update or publicly release any revisions to any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.

WEBCAST INFORMATION: General Dynamics will webcast its fourth-quarter securities analyst conference call, scheduled for 11:30 a.m. Eastern Time on Wednesday, January 23, 2008. Those accessing the webcast will be able to listen to management’s discussion of the fourth-quarter and full-year results, as well as the question-and-answer session with securities analysts.

The webcast will be available at www.generaldynamics.com. An on-demand replay of the webcast will be available by 3 p.m. on January 23 and will continue for 12 months.

To hear a recording of the conference call by telephone, please call 888-286-8010 (international: 617-801-6888); passcode 97541627. It will be available from 3 p.m. on January 23 until midnight January 30, 2008.

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CONSOLIDATED STATEMENT OF EARNINGS (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

	Fourth Quarter						Variance
	2007			2006			$			%
NET SALES	$	7,515		$	6,514		$	1,001		15.4	%
OPERATING COSTS AND EXPENSES		6,644			5,811			(833	)
OPERATING EARNINGS		871			703			168		23.9	%
Interest, Net		(11	)		(27	)		16
Other, Net		—			—			—
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		860			676			184		27.2	%
Provision for Income Taxes		282			213			(69	)
EARNINGS FROM CONTINUING OPERATIONS	$	578		$	463		$	115		24.8	%
Discontinued Operations, Net of Tax		1			(55	)		56
NET EARNINGS	$	579		$	408		$	171		41.9	%
EARNINGS PER SHARE — BASIC
Continuing Operations	$	1.43		$	1.14		$	0.29		25.4	%
Discontinued Operations	$	—		$	(0.13	)	$	0.13
Net Earnings	$	1.43		$	1.01		$	0.42		41.6	%
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING (IN MILLIONS)		403.3			405.0
EARNINGS PER SHARE — DILUTED
Continuing Operations	$	1.42		$	1.13		$	0.29		25.7	%
Discontinued Operations	$	—		$	(0.13	)	$	0.13
Net Earnings	$	1.42		$	1.00		$	0.42		42.0	%
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING (IN MILLIONS)		406.9			408.7

Exhibit A

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CONSOLIDATED STATEMENT OF EARNINGS (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

	Twelve Months						Variance
	2007			2006			$			%
NET SALES	$	27,240		$	24,063		$	3,177		13.2	%
OPERATING COSTS AND EXPENSES		24,127			21,438			(2,689	)
OPERATING EARNINGS		3,113			2,625			488		18.6	%
Interest, Net		(70	)		(101	)		31
Other, Net		4			3			1
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		3,047			2,527			520		20.6	%
Provision for Income Taxes		967			817			(150	)
EARNINGS FROM CONTINUING OPERATIONS	$	2,080		$	1,710		$	370		21.6	%
Discontinued Operations, Net of Tax		(8	)		146			(154	)
NET EARNINGS	$	2,072		$	1,856		$	216		11.6	%
EARNINGS PER SHARE — BASIC
Continuing Operations	$	5.14		$	4.24		$	0.90		21.2	%
Discontinued Operations	$	(0.02	)	$	0.36		$	(0.38	)
Net Earnings	$	5.12		$	4.60		$	0.52		11.3	%
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING (IN MILLIONS)		404.4			403.4
EARNINGS PER SHARE — DILUTED
Continuing Operations	$	5.10		$	4.20		$	0.90		21.4	%
Discontinued Operations	$	(0.02	)	$	0.36		$	(0.38	)
Net Earnings	$	5.08		$	4.56		$	0.52		11.4	%
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING (IN MILLIONS)		408.1			406.8

Exhibit B

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NET SALES AND OPERATING EARNINGS BY SEGMENT (UNAUDITED)

DOLLARS IN MILLIONS

	Fourth Quarter						Variance
	2007			2006			$			%
NET SALES:
AEROSPACE	$	1,211		$	1,033		$	178		17.2	%
COMBAT SYSTEMS		2,645			1,805			840		46.5	%
MARINE SYSTEMS		1,218			1,178			40		3.4	%
INFORMATION SYSTEMS AND TECHNOLOGY		2,441			2,498			(57	)	(2.3	)%
TOTAL	$	7,515		$	6,514		$	1,001		15.4	%
OPERATING EARNINGS:
AEROSPACE	$	212		$	168		$	44		26.2	%
COMBAT SYSTEMS		323			194			129		66.5	%
MARINE SYSTEMS		101			84			17		20.2	%
INFORMATION SYSTEMS AND TECHNOLOGY		254			266			(12	)	(4.5	)%
CORPORATE		(19	)		(9	)		(10	)	(111.1	)%
TOTAL	$	871		$	703		$	168		23.9	%
OPERATING MARGINS:
AEROSPACE		17.5	%		16.3	%
COMBAT SYSTEMS		12.2	%		10.7	%
MARINE SYSTEMS		8.3	%		7.1	%
INFORMATION SYSTEMS AND TECHNOLOGY		10.4	%		10.6	%
TOTAL		11.6	%		10.8	%

Exhibit C

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NET SALES AND OPERATING EARNINGS BY SEGMENT (UNAUDITED)

DOLLARS IN MILLIONS

	Twelve Months						Variance
	2007			2006			$			%
NET SALES:
AEROSPACE	$	4,828		$	4,116		$	712		17.3	%
COMBAT SYSTEMS		7,797			5,983			1,814		30.3	%
MARINE SYSTEMS		4,993			4,940			53		1.1	%
INFORMATION SYSTEMS AND TECHNOLOGY		9,622			9,024			598		6.6	%
TOTAL	$	27,240		$	24,063		$	3,177		13.2	%
OPERATING EARNINGS:
AEROSPACE	$	810		$	644		$	166		25.8	%
COMBAT SYSTEMS		916			677			239		35.3	%
MARINE SYSTEMS		421			375			46		12.3	%
INFORMATION SYSTEMS AND TECHNOLOGY		1,027			976			51		5.2	%
CORPORATE		(61	)		(47	)		(14	)	(29.8	)%
TOTAL	$	3,113		$	2,625		$	488		18.6	%
OPERATING MARGINS:
AEROSPACE		16.8	%		15.6	%
COMBAT SYSTEMS		11.7	%		11.3	%
MARINE SYSTEMS		8.4	%		7.6	%
INFORMATION SYSTEMS AND TECHNOLOGY		10.7	%		10.8	%
TOTAL		11.4	%		10.9	%

Exhibit D

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PRELIMINARY CONSOLIDATED BALANCE SHEET (UNAUDITED)

DOLLARS IN MILLIONS

	December 31, 2007			December 31, 2006
ASSETS
Current Assets:
Cash and equivalents	$	2,891		$	1,604
Accounts receivable		2,874			2,341
Contracts in process		4,337			3,988
Inventories		1,621			1,484
Other current assets		575			463
Total Current Assets		12,298			9,880
Noncurrent Assets:
Property, plant and equipment, net		2,472			2,168
Intangible assets, net		972			1,184
Goodwill		8,942			8,541
Other assets		1,049			603
Total Noncurrent Assets		13,435			12,496
	$	25,733		$	22,376
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Short-term debt and current portion of long-term debt	$	673		$	7
Accounts payable		2,318			1,956
Customer advances and deposits		3,440			2,949
Other current liabilities		2,733			2,912
Total Current Liabilities		9,164			7,824
Noncurrent Liabilities:
Long-term debt		2,118			2,774
Other liabilities		2,683			1,951
Commitments and contingencies
Total Noncurrent Liabilities		4,801			4,725
Shareholders’ Equity:
Common stock		482			482
Surplus		1,141			880
Retained earnings		11,379			9,769
Treasury stock		(1,881	)		(1,455	)
Accumulated other comprehensive income		647			151
Total Shareholders’ Equity		11,768			9,827
	$	25,733		$	22,376

Exhibit E

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PRELIMINARY CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

DOLLARS IN MILLIONS

	Twelve Months Ended
	December 31, 2007			December 31, 2006
Cash Flows from Operating Activities:
Net earnings	$	2,072		$	1,856
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation		278			251
Amortization		145			133
Stock-based compensation expense		86			61
Excess tax benefit from stock-based compensation		(67	)		(47	)
Deferred income tax provision		122			45
Discontinued operations, net of tax		8			(146	)
(Increase) decrease in assets, net of effects of business acquisitions:
Accounts receivable		(519	)		(160	)
Contracts in process		(435	)		(390	)
Inventories		(135	)		(237	)
Increase (decrease) in liabilities, net of effects of business acquisitions:
Accounts payable		340			180
Customer advances and deposits		993			399
Income taxes payable		66			39
Other, net		(2	)		172
Net Cash Provided by Operating Activities from Continuing Operations		2,952			2,156
Net Cash Used by Discontinued Operations—Operating Activities		(27	)		(28	)
Net Cash Provided by Operating Activities		2,925			2,128
Cash Flows from Investing Activities:
Purchases of available-for-sale securities		(2,798	)		(82	)
Sales/maturities of available-for-sale securities		2,619			70
Capital expenditures		(474	)		(334	)
Business acquisitions, net of cash acquired		(330	)		(2,342	)
Discontinued operations		23			300
Other, net		108			72
Net Cash Used by Investing Activities		(852	)		(2,316	)
Cash Flows from Financing Activities:
Purchases of common stock		(505	)		(85	)
Dividends paid		(445	)		(359	)
Proceeds from option exercises		207			253
Excess tax benefit from stock-based compensation		67			47
Repayment of fixed-rate notes		—			(500	)
Other, net		(110	)		105
Net Cash Used by Financing Activities		(786	)		(539	)
Net Increase (Decrease) in Cash and Equivalents		1,287			(727	)
Cash and Equivalents at Beginning of Period		1,604			2,331
Cash and Equivalents at End of Period	$	2,891		$	1,604

Exhibit F

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PRELIMINARY FINANCIAL INFORMATION (UNAUDITED)

DOLLARS IN MILLIONS EXCEPT PER SHARE AND EMPLOYEE AMOUNTS

	Fourth Quarter 2007						Fourth Quarter 2006
Non-GAAP Financial Measures:
Free Cash Flow from Operations:		Quarter			Year-to-date			Quarter			Year-to-date
Net Cash Provided by Operating Activities from Continuing Operations	$	1,071		$	2,952		$	824		$	2,156
Capital Expenditures		(180	)		(474	)		(137	)		(334	)
Free Cash Flow from Operations (A)	$	891		$	2,478		$	687		$	1,822
Return on Invested Capital:
Earnings from Continuing Operations	$	2,080					$	1,710
After-Tax Interest Expense		89						106
After-Tax Amortization Expense		99						90
Net Operating Profit after Taxes		2,268						1,906
Average Debt and Equity		13,430						12,220
Return on Invested Capital (B)		16.9	%					15.6	%
Other Financial Information:
Debt-to-Equity (C)		23.7	%					28.3	%
Debt-to-Capital (D)		19.2	%					22.1	%
Book Value per Share (E)	$	29.13					$	24.22
Total Taxes Paid	$	156					$	194
Company Sponsored R&D (F)	$	124					$	101
Employment		83,500						81,000
Sales Per Employee (G)	$	329,400					$	309,300
Shares Outstanding		403,979,572						405,792,438

(A) The company’s management believes free cash flow from operations is a measurement that is useful to investors, because it portrays the company’s ability to generate cash from its core businesses for such purposes as repaying maturing debt, funding business acquisitions and paying dividends. The company uses free cash flow from operations to assess the quality of its earnings and as a performance measure in evaluating management. The most directly comparable GAAP measure to free cash flow from operations is net cash provided by operating activities from continuing operations.

(B) The company’s management believes return on invested capital is a measurement that is useful to investors, because it reflects the company’s ability to generate returns from the capital it has deployed in its operations. The company uses ROIC to evaluate investment decisions and as a performance measure in evaluating management. The company defines ROIC as net operating profit after taxes for the latest 12-month period divided by the sum of the average debt and shareholders’ equity for the same period. Net operating profit after taxes is defined as earnings from continuing operations plus after-tax interest and amortization expense. The most directly comparable GAAP measure to net operating profit after taxes is earnings from continuing operations.

(C) Debt-to-equity ratio is calculated as total debt divided by total equity as of the end of the period.

(D) Debt-to-capital ratio is calculated as total debt divided by the sum of total debt plus total equity as of the end of the period.

(E) Book value per share is calculated as total equity divided by total outstanding shares as of the end of the period.

(F) Includes independent research and development and bid and proposal costs and Gulfstream product development costs.

(G) Sales per employee is calculated by dividing net sales for the latest 12-month period by the company’s average number of employees during that period.

Exhibit G

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BACKLOG (UNAUDITED)

DOLLARS IN MILLIONS

	Funded		Unfunded		Total Backlog		Estimated Potential Contract Value*		Total Estimated Contract Value
Fourth Quarter 2007
AEROSPACE	$	11,591	$	665	$	12,256	$	925	$	13,181
COMBAT SYSTEMS		10,824		2,077		12,901		2,347		15,248
MARINE SYSTEMS		7,621		4,439		12,060		2,513		14,573
INFORMATION SYSTEMS AND TECHNOLOGY		7,158		2,457		9,615		8,721		18,336
TOTAL	$	37,194	$	9,638	$	46,832	$	14,506	$	61,338
Third Quarter 2007
AEROSPACE	$	10,241	$	687	$	10,928	$	964	$	11,892
COMBAT SYSTEMS		11,371		2,195		13,566		2,083		15,649
MARINE SYSTEMS		8,106		4,641		12,747		2,601		15,348
INFORMATION SYSTEMS AND TECHNOLOGY		7,184		2,123		9,307		9,496		18,803
TOTAL	$	36,902	$	9,646	$	46,548	$	15,144	$	61,692
Fourth Quarter 2006
AEROSPACE	$	6,941	$	752	$	7,693	$	964	$	8,657
COMBAT SYSTEMS		10,086		1,883		11,969		1,855		13,824
MARINE SYSTEMS		9,449		4,576		14,025		1,052		15,077
INFORMATION SYSTEMS AND TECHNOLOGY		7,548		2,432		9,980		9,218		19,198
TOTAL	$	34,024	$	9,643	$	43,667	$	13,089	$	56,756

* The estimated potential contract value represents management’s estimate of the company’s future contract value under indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options associated with existing firm contracts. Because the value in the IDIQ arrangements is subject to the customer’s future exercise of an indeterminate quantity of delivery orders, the company recognizes these contracts in backlog only when they are funded. Unexercised options are recognized in backlog when the customer exercises the options and establishes a firm order.

Exhibit H

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FOURTH QUARTER 2007 SIGNIFICANT ORDERS (UNAUDITED)

DOLLARS IN MILLIONS

General Dynamics received the following significant contract orders during the fourth quarter of 2007:

Combat Systems

• Combined orders worth $347 from the U.S. Army under the Abrams M1A2 System Enhancement Package (SEP) program to reset and upgrade approximately 420 vehicles.

• $308 from the Army under the Egyptian M1A1 Abrams Tank Co-production program to supply 125 tank kits for assembly.

• Combined orders worth $236 for 401 armored Cougar vehicles and related spares under the Mine Resistant Ambush Protected (MRAP) vehicle program. The company is providing these vehicles to the U.S. Marine Corps through a joint venture with Force Protection, Inc.

• Combined orders worth $84 from the Army for Abrams Tank System Technical Support, bringing the total contract value to over $400.

• $88 from the Spanish government for 21 Piranha II wheeled armored vehicles.

Marine Systems

• $270 from the U.S. Navy to purchase long-lead materials for the FY 09 Virginia-class submarine.

• $189 from the Navy for procurement of long-lead materials and pre-production planning for the DDG 1000 Zumwalt-class destroyers.

Information Systems and Technology

• Contract modifications from the Army worth $633 to continue design and development of the Warfighter Information Network-Tactical (WIN-T) system.

• Combined orders totaling $113 under the Common Hardware/Software III program, bringing the total contract value to approximately $1.1 billion.

• $91 from the Navy to provide modifications and support for fire control systems aboard U.S. and U.K. ballistic missile submarines and for the attack weapons control system aboard U.S. guided missile submarines. The contract has a total potential value of approximately $160.

• $86 from the U.K. Royal Air Force for the tactical data link system of the Tactical Information Exchange Capability (TIEC) program. TIEC provides aircrew with enhanced situational awareness.

Exhibit I

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AIRCRAFT DELIVERIES (UNAUDITED)

	Fourth Quarter						Twelve Months
	2007			2006			2007			2006
GREEN (UNITS):
LARGE AIRCRAFT		19			19			79			71
MID-SIZE AIRCRAFT		16			11			59			42
TOTAL		35			30			138			113
COMPLETIONS (UNITS):
LARGE AIRCRAFT		20			17			82			71
MID-SIZE AIRCRAFT		17			12			56			33
TOTAL		37			29			138			104
PRE-OWNED:
UNITS		—			1			8			11
SALES (millions)	$	—		$	13		$	78		$	217
OPERATING EARNINGS (millions)	$	—		$	3		$	6		$	20
AEROSPACE MARGINS
EXCLUDING PRE-OWNED ACTIVITY		17.5	%		16.2	%		16.9	%		16.0	%

AIRCRAFT ORDERS (UNAUDITED)

	UNITS
	Large Aircraft		Mid-size Aircraft		Total
	2007	2006	2007	2006	2007	2006
ORDERS	179	114	78	45	257	159
DELIVERIES (A)	79	71	59	42	138	113
BOOK-TO-BILL	2.27	1.61	1.32	1.07	1.86	1.41

(A) Represents green deliveries.

Exhibit J

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