United Defense Announces Board Changes.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--Jan. 26, 2004

United Defense Industries, Inc. (NYSE:UDI) today announced the nomination of retired Navy Admiral Robert J. Natter to serve as director.

Natter recently retired as the commander of Fleet Forces Command and Atlantic Command after a 41-year career. "We are delighted to welcome Bob Natter to the United Defense Board," said Thomas W. Rabaut, President and CEO of United Defense Industries. "His years of experience and understanding of our Navy customer will help guide us in our continuing efforts to provide best support to this important segment of our business."

A biography on Admiral Natter follows.

Admiral Robert J. Natter United States Navy, Retired

Admiral Robert J. Natter, Retired, United States Navy, is a native of Trussville, Ala. He enlisted in the Naval Reserve at the age of 17 as a Seaman Recruit. Following one year of reserve enlisted service and four years at the Naval Academy, he was graduated and commissioned an Ensign in June 1967.

Adm. Natter assumed duties as Commander, U.S. Atlantic Fleet, on June 23, 2000, where he was responsible for providing fully trained, combat ready forces to support United States and NATO commanders in regions of conflict throughout the world.

On October 1, 2001, Adm. Natter became the first Commander of the newly established U.S. Fleet Forces Command. In this capacity, he was responsible for establishing and implementing Navy-wide policies for manning, equipping and training all Atlantic and Pacific Fleet ships and aircraft squadrons.

As Commander, U.S. Atlantic Fleet, Natter bore the responsibility for 156 ships, nearly 1,200 aircraft, 18 major shore stations and more than 129,000 personnel during an unusually critical three-year period in naval history. Since he assumed command June 23, 2000, the Navy was called on repeatedly to deploy in defense of the nation. The attack on USS Cole (DDG 67) in October 2000 and the terrible events in New York and at the Pentagon, Sept. 11, 2001, tested the readiness of the Atlantic Fleet.

Use of the Navy's principal training range on the island of Vieques came to end in April 2003. In its place, Natter implemented the Training Resource Strategy that allows the Navy to maintain combat superiority by better utilizing existing training ranges on the east and gulf coasts.

When the majority of the Atlantic Fleet surged to fight in Operation Iraqi Freedom, Natter agreed with the Chief of Naval Operations that the Navy needed to rethink how it deployed and maintained presence globally. Natter and his staff developed and instituted the Fleet Response Plan (FRP).

FRP has revolutionized Navy planning and has been heralded as a possible training and maintenance model for adoption by all service branches. The plan calls for the Navy to have six surge-ready carrier strike groups, and an additional two carrier strike groups ready to follow shortly thereafter. This has resulted in a new way of thinking about how the Navy mans, maintains, equips, trains and ultimately, fights, its ships.

Adm. Robert J. Natter relinquished command of the Navy's Fleet Forces Command and U.S. Atlantic Fleet on Oct. 3, 2003.

Adm. Natter was a distinguished graduate of the U.S. Naval War College and has Masters Degrees in Business Management and International Relations. In May 2000, he was honored as the fifth recipient of the Naval War College's annual Distinguished Graduate Leadership Award.

His personal decorations include the Silver Star Medal, three awards of the Distinguished Service Medal, the Defense Superior Service Medal, five awards of the Legion of Merit, the Bronze Star Medal with Combat V, the Purple Heart, two awards of the Meritorious Service Medal, the Navy Commendation Medal with Combat V, and the Navy Achievement Medal with Combat V.

About United Defense

United Defense designs, develops and produces combat vehicles, artillery, naval guns, missile launchers and precision munitions used by the U.S. Department of Defense and allies worldwide and is America's largest non-nuclear ship repair, modernization, overhaul and conversion company. To learn more about United Defense, visit www.uniteddefense.com.

Forward-Looking Statements

Information in this release may involve guidance, expectations, beliefs, plans, intentions or strategies regarding the future. These forward-looking statements involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to United Defense Industries, Inc. as of the date of the release, and we assume no obligation to update any such forward-looking statements. The statements in this release are not guarantees of future performance and actual results could differ materially from our current expectations. Numerous factors could cause or contribute to such differences. Please refer to the Company's Annual Report on Form 10K for the year ended December 31, 2002, and in our other reports filed from time to time with the Securities and Exchange Commission for a further discussion of the factors and risks associated with our business.