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                                                           FOR IMMEDIATE RELEASE
                                                          TUESDAY, JUNE 22, 1999

                     GENERAL DYNAMICS TO ACQUIRE THREE UNITS
                   OF GTE GOVERNMENT SYSTEMS FOR $1.05 BILLION

            FALLS CHURCH, VA -- General Dynamics (NYSE: GD) and GTE Corporation
(NYSE: GTE) announced today that they have entered into a definitive agreement
for General Dynamics to acquire three units of GTE's Government Systems
organization for $1.05 billion in cash.

            The transaction has been approved by the boards of directors of both
companies and is subject to normal regulatory approvals. General Dynamics will
assume no GTE debt in the transaction. The acquisition will be treated for tax
and accounting purposes as an asset purchase and is expected to close within 60
days. The acquisition will be immediately accretive to General Dynamics'
earnings.

            GTE Government Systems is a leader in the advancement of command,
control, communications and intelligence systems; electronic defense systems,
communication switching; and information systems for defense, government, and
industry in the United States and abroad. Included in the purchase are the
Communication Systems Division in Taunton, Massachusetts; Worldwide
Telecommunications Services in Needham Heights, Massachusetts; and Electronic
Systems Division in Mountain View, California. Together, these units have a
backlog of $900 million, approximately 6,200 employees, and expect to have 1999
revenues of approximately $1.2 billion.

            When the transaction closes, these units will be part of General
Dynamics Information Systems and Technology business group.

            "This is a solid addition to our defense core and a superb strategic
fit," said Nicholas D. Chabraja, General Dynamics chairman and chief executive
officer. "We formed the Information Systems and Technology group in 1998 from a
series of acquisitions. Anticipated 1999 revenues for the group had been
estimated at $1 billion. With this acquisition, we more than double the size of
the group, and tremendously expand its capabilities. The Government Systems
organization gives us world-class information assurance, land communication and
networking capabilities. It strengthens our signal processing, applications and

                                     (more)
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decision support capabilities, and creates a world wide information systems
support and services organization," Chabraja said. "We are committed to our
defense customers and see significant growth opportunities in the defense
electronics market. We believe this transaction provides strong career
opportunities and a good corporate home to the fine GTE employees who have made
their organization so successful."

            GTE Chairman and CEO Charles R. Lee said, "GTE Government Systems
has been a central part of GTE's heritage, and a major contributor to our
success. It is gratifying that one of the defense industry's most prominent and
highly regarded companies, General Dynamics, recognizes the talent and
creativity of this outstanding team. At the same time, this transaction is
important to GTE as we focus on our core telecommunications services and
reposition ourselves for future growth."

            The transaction is the most recent in GTE's previously announced
initiative to sell non-core business assets to generate more than $3 billion in
after-tax proceeds. On May 27, GTE announced reaching agreements to sell
wireline properties in Alaska to the Alaska Telephone Exchange Acquisition
Corporation, Inc. (ATEAC) and in Arizona, California and Minnesota to Citizens
Utilities. Proceeds from the sale of GTE's Government Systems unit and wireline
properties will be used to pay off debt that will be incurred with GTE's pending
purchase of Ameritech wireless properties in Illinois and Missouri, and to
invest in future high-growth strategic initiatives.

            General Dynamics, headquartered in Falls Church, Virginia, supplies
sophisticated defense systems and services to the United States government and
its allies around the world. The company employs 29,800 people and had 1998
sales of approximately $5 billion.

            GTE Corporation, based in Irving, Texas, is a leading
telecommunications provider with one of the industry's broadest arrays of
products and services. The company has 120,000 employees and had 1998 sales of
more than $25 billion.

MEDIA CONTACTS

For General Dynamics:   Norine Lyons - 703 876-3190
                        E-mail:  nlyons@generaldynamics.com

For GTE:                Peter Thonis   -   972 507-5367
                        E-mail:  Peter.Thonis@hq.gte.com
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           GENERAL DYNAMICS ANALYST/PRESS MEETING AND CONFERENCE CALL
                          WITH CHAIRMAN NICK CHABRAJA

                        9:30 A.M. TUESDAY, JUNE 22, 1999
                    The New York Palace Hotel - Winslow Room
                          455 Madison Avenue (50th St.)

                               New York, NY 10022
                                  212 888-7000

                 Dial-in number (US and Canada): 1 800 553-2506
                       International callers: 303 267-1006
                               CALL IN BY 9:20 AM

A replay of the conference will be available for 48 hours following the call.
US and Canada: 1 800 625-5288
International callers: 303 804-1855
Reservation number 562634

