United Defense Awarded Contracts Worth $218 Million to Upgrade Bradley Vehicles, Provide Spares and Supply Blue Force Tracking Kits

Bradley Upgrades Incorporate Enhancements Based on Lessons Learned in Operation Iraqi Freedom

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

YORK, PA, June 2, 2004 - United Defense Industries, Inc. (NYSE:UDI) was awarded a contract modification and two delivery orders worth up to $218 million today to provide enhancements to upgraded Bradley Fighting Vehicles that will improve soldier capabilities.

The awards include: $191.1 million to remanufacture and upgrade 131 older Bradley Fighting Vehicles to an M3A2 configuration that incorporates the latest enhancements based on lessons learned by the U.S. Army during Operation Iraqi Freedom (OIF), deliver 31 M7 Bradley Fire Support (BFIST) vehicles, and provide 40 Bradley A2 Operation Desert Storm (ODS) kit sets; $19.8 million for spare parts for Bradley A3 vehicles and the Bradley A2 OIF vehicles; and $7.1 million to provide Blue Force Tracking (BFT) kits for Bradley A2 ODS vehicles. The award to provide the BFT kits is funded initially at $3.6 million.

" United Defense and the U.S. Army's program manager for combat systems have, over the past year, focused on adding technologies and capabilities to the Bradley to address lessons learned during Operation Iraqi Freedom," said Andy Hove, Director of Bradley Programs for United Defense. "The Bradley proved to be an exceptional system both in the open desert and during urban operations such as the "Thunder Run" conducted by 3rd Infantry Division's Spartan Brigade, but there are still many opportunities to make the vehicle perform even better."

The Bradley remanufacture and upgrade award, issued by the U.S. Army’s Tank-automotive and Armaments Command under a multi-year corporate contract, provides for deliveries in 2005 and 2006. Thirteen BFIST vehicles and the 40 ODS kits were previously announced by TACOM under an undifinitized modification awarded on May 14. The contract also contains options for 2 additional M3A2 OIF Bradley vehicles and an additional 20 A2 ODS kits.

The Bradley A2 OIF includes the base features of the Bradley A2ODS, and integrates the Bradley A3 IBAS system, second generation forward looking infrared, an improved inertial navigation system, and FBCB2 command and control.

Work on the remanufacture contract will begin in the first quarter 2005 and will be performed at the company’s facilities in York, Pa., Fayette County, Pa. and Aiken, S.C., with vehicle deliveries scheduled for September 2005 through August 2006. The spare parts contract and the 365 A2 ODS BFT kits were awarded separately under a Bradley Spares Order Agreement.

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 provides non-nuclear ship repair, modernization and conversion to the U.S. Navy and other U.S. Government agencies. 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 as well as its Quarterly Report on Form 10 Q for the quarter ended March 31, 2004, 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.