United Defense Receives Contract Modifications Worth $208.5M to Remanufacture 142 Bradley Vehicles Under Multi-Year Contract

Contact:
Herb Muktarian
herb.muktarian@udlp.com
(717) 225-8004

YORK, PA, March 27, 2002 - United Defense (NYSE: UDI) has received contract modifications worth $208.5 million to remanufacture 142 Bradley Fighting Vehicles and provide Appliqué kits under the second year of a Bradley multi-year corporate contract.

The first modification from the U.S. Army's Tank-automotive and Armaments Command (TACOM) calls-up Fiscal Year 2002 vehicles, providing for 98 Bradley M3A3 cavalry vehicles and 44 Bradley M2A3 infantry systems. The second modification calls for 45 additional Appliqué kits.

The Bradley multi-year corporate contract, issued in mid-2001, will ultimately cover the manufacture of 389 Bradley A3 vehicles and up to 77 other variants of the Bradley system over the full three-year contract. Deliveries begin in July 2002 and will continue through December 2005.

"The Bradley A3 provides our soldiers with the ability to acquire, identify and engage the opposition, day or night. The advanced capabilities the Bradley A3 brings to the battlefield significantly increase lethality and survivability for the soldier," said Dave Glowacki, United Defense Bradley A3 Program Director.

Work on the contract will be performed at United Defense facilities in York, Pa., Santa Clara, Calif., Fayette County, Pa., and Aiken, S.C.

About United Defense
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. Visit United Defense on the Internet at http://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.