NEWPORT NEWS HAS RECEIVED TAKEOVER PROPOSAL
                       FROM GENERAL DYNAMICS

NEW  ORLEANS,  LOUISIANA  -  Feb.  18,  1999  -  Avondale  Industries, Inc.
(Nasdaq/NMS-AVDL) announced today that it has been informed by Newport News
Shipbuilding (NYSE-NNS) that Newport News has received an unsolicited offer
from  General  Dynamics  (NYSE-GD)  proposing to acquire Newport  News  for
$38.50 per share in cash, subject to  due diligence and antitrust clearance
from the appropriate regulatory authorities.

On January 19, 1999, Avondale and Newport  News announced a proposed merger
that is currently under regulatory review.   Under  the  merger  agreement,
Newport News is not permitted to engage in discussions or negotiations with
respect to any other acquisition proposal unless its board determines  that
the  proposal could result in a "superior proposal."  A "superior proposal"
is one  that  Newport News' board determines is reasonably capable of being
completed, taking  into  account  legal,  regulatory and other factors, and
that presents more favorable terms, financial  and  otherwise,  taken  as a
whole, to its shareholders, than the agreement with Avondale.

While the General Dynamics letter did not specifically ask Newport News  to
terminate its agreement with Avondale, the letter states that Newport News'
proposed  acquisition  of  Avondale  would  create  antitrust problems in a
combination of General Dynamics and Newport News.

Newport  News  has informed Avondale that, due to antitrust  concerns,  its
board has not been  able to conclude at this time that the General Dynamics
proposal is reasonably  capable  of being completed.  Avondale has informed
Newport  News  that  it  supports  this  determination  and  remains  fully
committed to the transaction with Newport  News.   Newport  News  has  also
informed  Avondale that, in order to satisfy Newport News' board's concerns
regarding the  reasonable certainty of closing the General Dynamics/Newport
News acquisition,  the  board  would require a finding by the Department of
Defense that there is a reasonable likelihood of approval, and that Newport
News has requested a response from the Department of Defense.

Avondale believes that a combination  of  Avondale  and  Newport News would
enhance  competition  in  the  industry  and  would  not present  antitrust
concerns, unlike a combination of General Dynamics and Newport News. Albert
L. Bossier, Jr., Chairman and Chief Executive Officer  of  Avondale,  said,
"The  combination  of  Avondale  and  Newport  News  creates  a  strong new
competitor  that can design, build and maintain every ship in the Navy  and
Coast Guard fleets.   We  believe  that  the  combination  of  Avondale and
Newport  News  offers  the  best  value to the shareholders, customers  and
employees of both companies."

Avondale Industries, Inc., headquartered  in  metro  New  Orleans, designs,
builds  and  overhauls  both  military  and commercial ships.  The  Company
employs 6,000 people and has annual revenue of approximately $750 million.
__________________________________
Contact:
     Avondale Industries, New Orleans
     Thomas M. Kitchen 504/436-5237
     or
     Eugene K. Simon 504/436-5664