United Defense Virginia Shipyard Wins DDG Contract
Award to NORSHIPCO Could Reach $50 Million

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

Jackie Kreisler, Media
United States Marine Repair
kreislerj@swmarine.com
(619) 557-4289

NORFOLK, VA, December 28, 2004 - United Defense Industries, Inc. (NYSE:UDI) announced today the initial $95,000 award of a five-year, Multi-Ship, Multi-Option (MSMO) cost-plus award-fee contract to NORSHIPCO, its Norfolk, Va., shipyard.

NAVSEA, the contracting facility, awarded the contract for work on 10 Arleigh Burke-class destroyers homeported in Norfolk. The initial award will support advance planning on the first ship in the contract, the USS MAHAN (DDG 72). If the Navy exercises all options, the value of the contract could reach $50 million. The work package, scheduled for completion in 2010, is expected to include dry docking and topside work, in addition to continuous maintenance between planned availabilities.

"This is very good news for the future of our workforce," said Tom Epley, NORSHIPCO's president and general manager. "The Multi-Ship Multi-Option contracts enable the Navy to maintain a higher state of readiness, while enhancing the Navy's ability to respond to threats on short notice."

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. Its subsidiary, United States Marine Repair, which includes SWM serves the U.S. Navy, its primary customer, and other defense and commercial customers at ship repair operations in Norfolk, Va.; San Diego, San Francisco and San Pedro, Calif.; Pearl Harbor, Hawaii; and Ingleside, Texas. 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.