Bofors Defence Development Supports Upcoming International Role for Swedish Defense Forces

CV 90 Upgrade Development Underway

Contact:
Magnus Ingesson, President
Tfn: +46 586 81742

Lennart Borné, Information Manager
Tfn: +46 73 668 2031

KARLSKOGA, Sweden, - January 31, 2002 - In December, Bofors Defence received an order for additional development and materials to support international service of the CV 90 family of combat vehicles. The total value of the order is 107 MSEK (approximately US $ 10 million) and is part of a contract that was received last summer for the CV 90. The CV 90 will be used by Swedish military personnel in coming global operations within the framework of European Union (EU)/United Nations (UN) missions starting on January 1, 2003.

The order includes reserve materiel (spares), combat control systems, and studies, as well as the further development of the CV 90. This order will focus on increasing the system’s durability and the CV 90’s adaptability to future requirements relating to international environments.

The CV 90 is an extremely agile, multi-role system of combat vehicles with all-target capability, a low compact structure, and minimized radar and IR-signatures. There are five variations of the vehicle, and all are designed for maximum performance in the most inhospitable terrain and hostile combat environments.

“At Bofors Defence we are pleased that our combat vehicle technical solutions are valued by our biggest customer,” said Bofors Defence President Magnus Ingesson. “This award enables our active participation in the new direction being taken by the Swedish Defence Authorities, especially as it relates to upcoming international missions for the CV 90 family of combat vehicles.”

Bofors Defence, a leading provider of intelligent systems and munitions, is a Swedish defense company wholly owned by United Defense (NYSE: UDI). Bofors Defence is recognized globally for its end-to-end competencies in the design, development and production of intelligent munitions, artillery systems, naval gun mounts, combat vehicle weapon stations, and mine clearing systems. For additional information, visit the Bofors Defence website at www.boforsdefence.com. For additional information regarding United Defense, visit www.uniteddefense.com.

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. Some of the factors and risks associated with our business are discussed in the Company’s registration statement dated December 13, 2001 on Form S-1 and in our other reports filed from time to time with the Securities and Exchange Commission.