United Defense Future Combat System Wheeled Prototype Performs Well in 1,100 Miles of Road Testing

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

SANTA CLARA, CA, February 26, 2003 - United Defense Industries (NYSE:UDI) announced today that its Future Combat System Wheeled prototype has achieved 1,100 miles of successful testing at facilities in California, demonstrating robust performance of hybrid-electric propulsion components and the vehicle's advanced hull structure.

United Defense's 8x8 FCS-W is based on FCS Phase 1 vehicle concepts and is demonstrating leap-ahead technologies and advanced capabilities that the U.S. Army is seeking for its future force. The vehicle features a turbine-driven, hybrid-electric drive system and two-man cockpit workstation that incorporates innovations developed for the Future Scout and Cavalry System (FSCS) program. FCS-W features new and advanced material designs that provide superior ballistic protection through a highly advanced vehicle hull structure. The vehicle was designed and manufactured by United Defense in less than eight months.

"Our testing to date is proving that hybrid-electric propulsion is a viable option for FCS," said Mark Pedrazzi, United Defense Manager, Advanced Mobility Systems.

"The performance of United Defense's generator, inverter and drive motor have been excellent, and the new advanced hull structure is delivering the performance and durability we expected."

FCS-W has accumulated more than 1,100 miles since mid-January in primary and secondary road driving, and during cross-country operations. The company will continue to test the vehicle under various road conditions and cross-country scenarios.

The performance of the FCS-W further demonstrates the capabilities of hybrid-electric drive as illustrated last year by United Defense's Future Combat System Tracked prototype under the U.S./U.K. FSCS program. Under FSCS, the FCS-T completed more than 800 miles during testing in the U.S. and U.K. using a generator, inverter and drive motors common to the FCS-W.

FCS-W is designed to deliver a top road speed of 75 mph, a maximum cross-country speed of over 40 mph and acceleration from 0-30 mph in 7 seconds. The vehicle features an advanced hybrid structural design that combines titanium, a high-strength aluminum alloy, polymer composites and ceramics to provide superior ballistic protection when combined with the latest armors. The unique arrangement of the Honeywell turbine power unit and United Defense's generator provides for a two-man, side-by-side cockpit and a large payload compartment for a full infantry squad or mission equipment for other variants.

United Defense leveraged years of Army investment and Company experience in vehicle systems integration, hybrid-electric drive, composites, active protection systems, crew cockpits and other technologies, in creating and manufacturing FCS-W, and has integrated technologies that are ready for FCS Block 1 variants. Collaborative partnerships in research and development with industry, government and academia were key in the successful development of the vehicle.

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, and is America's largest non-nuclear ship repair, modernization and conversion company. To learn more about United Defense Industries, Inc., 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 Quarterly Report on Form 10Q for the quarter ended September 30, 2002, 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.