United Defense's Ceramic Business Awarded $5.9 Million Contract for Interceptor Body Armor Inserts

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

VISTA, CA - August 25, 2004 - United Defense Industries, Inc. (NYSE: UDI) subsidiary Cercom, Inc., has been awarded a $5.9 million order against an indefinite delivery/indefinite quantity contract from U.S. Army Research, Development and Engineering Command Acquisition Center for interceptor body armor inserts.

"We're pleased to be improving troop survivability," said Rich Palicka, President of Cercom. "Our production of small arms protective inserts with hard ceramic plates can provide a higher level of protection than soft body armor."

Work on the order will be performed at Cercom's Vista, Calif. facility. Production of the first release of the plates will be completed by May 2005. The contract runs through August 2007.

Cercom is a wholly-owned subsidiary of United Defense Industries, Inc., and is a leader in the technology of advanced materials, including armor that provides protection to military personnel. The company produces more than 25 different materials for the semiconductor, defense, and industrial business sectors.

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.