08:32 GMT, June 3, 2009 FALLS CHURCH, Va. | The U.S. Circuit Court of Appeals for the Federal Circuit today affirmed an earlier decision by the U.S. Court of Federal Claims sustaining the government's default termination of the A-12 aircraft contract to which General Dynamics (NYSE: GD) and McDonnell Douglas were parties with the Navy. McDonnell Douglas is now owned by The Boeing Company.

General Dynamics disagrees with this most recent ruling and continues to believe that the government's default termination was not justified. The company also believes that the ruling provides significant grounds for appeal, and intends to seek a re-hearing in the Federal Circuit.