United Defense Receives Over $94 Million in Navy Production Funding in April

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

Jeff Van Keuren
United Defense, Public Affairs
(763) 572-7615
jeff.van.keuren@udlp.com

MINNEAPOLIS, MN, April 21, 2004 - United Defense Industries, Inc. (NYSE:UDI) has received modifications to existing naval weapon system contracts for the Mk 45 Mod 4 Naval Gun and the Mk 41 Vertical Launching System (VLS) totaling $94.2 million during April 2004.

The Naval Sea Systems Command, Washington, DC, awarded a $ 42.9 million contract modification to United Defense for the production of three Mk 45 Mod 4 Naval Guns, for use aboard DDG 107 through DDG 109. The 5-inch, 62-caliber Mk 45 Mod 4 is a fully automatic naval gun capable of supporting anti-surface, strike, fire support and anti-air warfare missions. Production work will be performed in Minneapolis, Minnesota, and Louisville, Kentucky, and is expected to be completed by December 2006.

United Defense received two funding updates from Lockheed Martin Corporation during the last two weeks totaling $51.3 million. The first award supports the production of 12 Mk 41 Vertical Launching System modules for a Japanese Defense Forces DDG-class destroyer. The second award supports the production, installation, and check-out of 36 Mk 41 Vertical Launching System modules for three U.S. DDG-class destroyers. Work will be performed at the United Defense facility in Aberdeen, South Dakota, and at supported shipyards. Production work is expected to be completed by September 2006, with installation and check-out services running through the end of 2008.

"Our production of key weapon systems for U.S. Navy surface combatant ships continues to be an important role for United Defense," said Keith Howe, United Defense's Vice President and General Manager at the Armament Systems Division. "It is vital that the United States Navy have the most modern and lethal combat systems at sea, and United Defense stands ready to provide both current and future naval guns and missile launchers to meet that need."

About United Defense
United Defense designs, develops and produces 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 conversion and overhaul company. To learn more about United Defense, 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 Annual Report on Form 10-K for the year ended December 31, 2003 and 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.