United Defense Awarded Bradley Contract Modifications Worth $85.9 Million from the U.S. Army.

YORK, Pa. -- United Defense Industries, Inc. (NYSE:UDI) has been awarded two Bradley contract modifications worth up to $85.9 million to provide key Bradley subsystems to the U.S. Army that were previously provided as Government Furnished Material.

"Moving the procurement of the IBAS and related spares to United Defense better positions the company to handle obsolescence and product improvements at the vehicle system level and provides the Army the best value solution," said Andy Hove, United Defense Director for Bradley Program.

The contracts from the U.S. Army's Tank-automotive and Armaments Command (TACOM), include:

--$71.5 million, funded initially at $35.7 million, through FY04 funding under a multi-year corporate contract to procure and incorporate the Improved Bradley Acquisition System (IBAS) and the Tow Missile Launcher for 131 Bradley A2 Operation Iraqi Freedom (OIF) vehicles, and the Bradley Eyesafe Laser Rangefinder for 31 M7 Bradley Fire Support vehicles and 40 Operation Desert Storm kits;

--$14.4 million, funded initially at $7.2 million, under a Bradley basic ordering agreement to provide IBAS spares for Bradley A3 and Bradley A2 OIF vehicles.

Work on the contract will begin in May 2005 and procurement and integration during production will be performed at the company's York, Pa. facility.

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 provides non-nuclear ship repair, modernization and conversion to the U.S. Navy and other U.S. Government agencies. To learn more about United Defense, visit http://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 10 K for the year ended December 31, 2003 as well as its Quarterly Report on Form 10 Q for the quarter ended March 31, 2004, 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.