United Defense to Bid for United Kingdom's Future Command and Liaison Vehicle Program as Prime Contractor for INSYS Limited Team

Contact:
Doug Coffey,
doug.coffey@udlp.com
(703) 312-6121


ARLINGTON, VA, June 20, 2002 - United Defense (NYSE:UDI) announced today it will bid on the Demonstration, Manufacturing and Support (DM&S) Phase of the United Kingdom's Future Command and Liaison Vehicle (FCLV) Program as prime contractor for the existing INSYS Limited team.

United Defense was selected by the INSYS led team, which also includes Ateliers de Constructions Mecaniques de L'Atlantique (ACMAT), and Marshall Specialist Vehicles (MSV) to lead the team as prime contractor in the competition for the DM&S Phase of the program. The existing INSYS-led team successfully competed in the previous phases of the FCLV program.

"The work undertaken by the INSYS team has resulted in a highly capable solution which meets all of the key FCLV requirements. FCLV remains an important programme to INSYS and its team members. To ensure that we maximise the competitiveness of our solution, we have decided to bring United Defense into our team as Prime Contractor for the DM&S phase of the programme. This will add the benefits of United Defense's Prime Contractor experience, resources and technologies to our strong competitive position," said Brian Hibbert, INSYS Managing Director.

"United Defense is fully committed to winning and executing this important program and the opportunity it presents to grow our global presence in the United Kingdom, and to create closer links with the Defense Industry. We are looking forward to this competition and the opportunity to serve the United Kingdom's defense needs," said Thomas W. Rabaut, United Defense President and CEO.

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.

About INSYS Limited
INSYS is a major UK defense supplier and systems integrator. The Company is responsible for the Communications and Information Systems (CIS) installations in all wheeled vehicles and the majority of tracked vehicles in service with the British Army. Visit INSYS on the Internet at http://www.insys-ltd.co.uk/.

About ACMAT SA
ACMAT, based in St. Nazaire in France, has 50 years experience in the manufacture of rugged, all-terrain wheeled military vehicles and is a major supplier to the French Armed Forces and 60 other forces throughout the world, including the British Army. ACMAT's vehicles incorporate a unique design philosophy aimed specifically at very high reliability, coupled with very low whole life costs.

About MSV
Marshall SV is a leading provider of vehicle-based systems for military forces and has extensive experience in the development of specialist vehicles and systems to support strategic, operational and tactical mobility. Visit MSV on the Internet at http://www.marshallsv.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.