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United Defense Awarded $28.1 Contract Modification by U.S. Army for Opposing Forces Surrogate Vehicle Effort.

Business Editors

SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 22, 2003

United Defense Industries, Inc. (NYSE:UDI) has been awarded a $28.1 million contract modification by the U.S. Army Program Executive Office - Simulation Training and Instrumentation for the production of Opposing Forces Surrogate Training System (OSTS) - Main Battle Tank vehicles.

The modification exercises Option 1 for the production of 33 OSTS-MBT vehicles, one lot of spare parts, two sets of special tools and test equipment and continuation of system technical support. The contract modification follows an original sole-source award made in November 2002 with a total contract value of $136.8 million if all options are exercised.

This modification is the first of four options provided in the original contract. Work is underway on the program and continues through 2007.

"This award continues our effort to support the U.S. Army in replacing M551 Sheridan-based opposing forces surrogate vehicles. The combined basic and Option 1 quantities will fulfill the total OSTS-MBT fielding requirement at the Joint Readiness Training Center in Ft. Polk, La.," said Greg Mole, United Defense's M113 derivative vehicles manager.

The system technical support work will be performed at United Defense's Santa Clara, Calif. facility. Vehicle production will be completed at United Defense's Anniston, Alabama facilities in partnership with the Anniston Army Depot and Rock Island Arsenal in Illinois.

The OSTS-MBT is a tracked surrogate vehicle designed to operationally and visually simulate threat tanks during force-on-force training at the U.S. Army Combat Maneuver Training Centers in Ft. Polk, La., Ft. Irwin, Calif. and Hoenfels, Germany. The vehicle consists of an M113A3 chassis with an operational two-man turret equipped with simulated weapon systems and visual modifications.

About United Defense Industries, Inc.

United Defense is a leader in the design, development and production of 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 and conversion company.

To learn more about United Defense Industries, Inc., visit

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 Quarterly Report on Form 10Q for the quarter ended Sept. 30, 2002 ad 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.
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Publication:Business Wire
Geographic Code:1USA
Date:Jan 22, 2003
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