United Defense Completes Acquisition of EPD Container Solutions

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

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

MINNEAPOLIS, MN - January 18, 2005 - United Defense Industries, Inc. (NYSE: UDI) announced today that it has completed its acquisition of Engineered Plastic Designs, Inc., doing business as EPD Container Solutions, of Berthoud, Colorado, for $8 million to enhance and expand the development and production of weapon system containers for the armed forces.

EPD Container Solutions is a full service provider of specialized containers for military munitions, such as missiles and bombs, as well as containers to handle and transport major subassemblies from aircraft and space systems. Examples of containers currently produced for Air Force, Navy and Army needs are the Sidewinder Missile container, the Joint Air Surface Standoff Missile container, the Air Launch Glide Missile container, and the Longbow/Hellfire II missile container. EPD Container Solutions had revenues of $10 million during the fiscal year 2004 ending September 30. The company currently employs 75 personnel.

"The purchase of EPD Container Solutions by United Defense not only increases our current core canister capabilities, but also strengthens our product offering base," said Keith Howe, United Defense vice president and general manager at the Armament Systems Division. "This acquisition is complimentary to our existing Navy canister business which will now enable us to extend products to all military services as well as other aerospace applications."

About United Defense Industries
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.