General Atomics Aeronautical Systems Awarded New DHS/CBP Contract

General Atomics Aeronautical Systems Awarded New DHS/CBP Contract

FOR IMMEDIATE RELEASE

Oct 09, 2006

$33.9 Million Order Received as Next Predator B Is Delivered

SAN DIEGO – 9 October 2006 – General Atomics Aeronautical Systems, Inc. (GA-ASI), a leading manufacturer of unmanned aircraft and high-resolution surveillance and radar imaging systems, today announced that it has received a $33.9 million contract from the U.S. Department of Homeland Security (DHS)/Customs and Border Protection (CBP), Office of Air and Marine, to provide two additional unmanned aircraft systems (UAS). Scheduled to be delivered in fall 2007, each system will comprise a Predator® B aircraft equipped with an EO/IR camera system, Lynx® SAR/GMTI, ground control station, support equipment and logistics support.

“This latest order from Customs and Border Protection is a testament to Predator B’s ability to fulfill the nation’s need for increased surveillance of its borders,” said Thomas J. Cassidy, Jr., president, Aircraft Systems Group, General Atomics Aeronautical Systems, Inc. “The partnership between GA-ASI and DHS/CBP has served as a force multiplier to the existing southwest border domain awareness capability, providing a dramatic increase in the ability of CBP to monitor our borders.”

GA-ASI’s relationship with DHS began in November 2003 with a test mission along the U.S. southwest border utilizing a Predator B UAS. In August 2005, GA-ASI was awarded the first UAS procurement contract from DHS/CBP in support of a homeland security mission and delivered the aircraft only 27 days after contract award. Over the course of a recent seven-month operation along the southwest border, CBP’s first Predator B accumulated nearly 1,000 flight hours and was used to detect, track and document illegal crossings, drug trafficking and potential terrorist activity, as well as to coordinate apprehensions. A second Predator B aircraft was delivered to CBP the end of September and will begin operations by month’s end.

Predator B is currently operational with the U.S. Air Force and has been acquired by the U.S. Navy and NASA.

About GA-ASI

General Atomics Aeronautical Systems, Inc., an affiliate of General Atomics, provides comprehensive solutions for military and commercial applications worldwide. The company’s Aircraft Systems Group is a leading designer and manufacturer of proven, reliable unmanned aircraft systems (UAS), including Predator, Predator B and ER/MP UAS, and provides pilot training and support services for UAS field operations. The Aircraft Systems Group has been awarded the SDD phase of the U.S. Army’s ER/MP UAS Program and is currently developing the next-generation Army UAS, featuring a heavy-fuel engine, triple-redundant avionics and increased armament capability. The Reconnaissance Systems Group designs, manufactures and integrates the Lynx SAR/GMTI sensor system for both manned and unmanned aircraft and is also pursuing the integration of the Magnum (Raptor View) high-resolution EO/IR sensor onto a UAS platform. Leading the industry to new levels of performance, reliability and operational capability since its establishment in 1993, the company has expanded the acceptance and application of UAS within the United States and among allied forces around the globe. GA-ASI is committed to providing immediately deployable, transformational technology for military operations, weapons systems and civil missions. For more information, please visit www.uav.com.

Predator and Lynx are registered trademarks of General Atomics Aeronautical Systems, Inc.

For more information contact:

Kimberly Kasitz

Public Relations Manager

General Atomics Aeronautical Systems, Inc.

+1.858.455.2294

kimberly.kasitz@uav.com