United Defense Receives $104 Million Tomahawk Missile Canister Contract

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

MINNEAPOLIS, MN - December 6, 2004 - United Defense Industries, Inc. (NYSE: UDI) has been awarded a contract with total value in excess of $104 million to produce Mk 14 Mod 2 Tomahawk canisters compatible with the U.S. Navy's new Tactical Tomahawk missile for firing from the Vertical Launching System (VLS) Mk 41.

The contract was awarded by the Naval Sea Systems Command (NAVSEA), Washington, D.C. This contract provides for a base award of $17.1 million for the renewal and upgrade of 352 Mk 14 canisters at the United Defense facility in Aberdeen, South Dakota.

The contract includes options for the renewal and upgrade of an additional 688 Mk 14 canisters and the production of 439 new Mk 14 Mod 2 canisters. Should all options be exercised by the Navy, the total value of this contract is $104.3 million. Work under this contract is scheduled to begin immediately with delivery of the first renewed Mk 14 canister during the summer of 2005.

"This production contract capitalizes on our work last year and earlier this year to design the modifications required to fire the new Tactical Tomahawk missile from the Mk 14 canister," said Keith Howe, United Defense vice president and general manager at the Armament Systems Division. "This updated canister design not only adds a new missile to the VLS munitions inventory, it has the added benefit of doubling the service life of the Mk 14 canister."

The VLS Mk 41 missile canisters provide a sealed storage, transportation, and launch container for the wide range of system-compatible weapons. The VLS Mk 41 canister envelope is common to system launcher module standards, while internal mechanical and electrical components are tailored to specific missile shapes and interface requirements. United Defense is the U.S. Navy's exclusive design agent and worldwide supplier of VLS Mk 41 launch canisters.

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 September 30, 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.