United Defense Awarded $8.8 Million Contract for Egyptian Recovery Vehicle Co-Production Effort

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

YORK, PA, January 4, 2005 - United Defense Industries, Inc. (NYSE:UDI) has been awarded an $8.8 million contract modification from the U.S. Army Tank-Automotive and Armaments Command to provide manufacturing technical assistance in support of the co-production of 21 M88A2 HERCULES recovery vehicles in Egypt.

The awarded work is to be performed primarily at the Egyptian Tank Plant (ETP) in Cairo beginning January 2005 and continuing through December 2006.

"The M88A2 HERCULES is meeting the recovery needs of the Egyptian Land Forces, providing the safe, effective recovery of their 70-ton main battle tanks. The cost-effective M88A2 HERCULES delivers significantly improved towing power, lifting muscle and winch strength to the soldiers of the Egyptian Land Forces in completing their main battle tank recovery missions," said John G. Tile, United Defense's Director of Recovery Systems.

Previously, United Defense was awarded a $53M contract to provide the material for the follow-on co-production of the 21 additional M88A2 HERCULES recovery vehicles at the ETP, with associated spare parts.

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.