United Defense Awarded $6 Million Contract for Surrogate Training Vehicles

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

SANTA CLARA, CA, January 31, 2005 - United Defense (NYSE: UDI) has been awarded a $6 million contract to produce seven additional Opposing Forces Surrogate Training System (OSTS) - Main Battle Tank (MBT) vehicles for the U.S. Army, adding to a December 2004 contract modification for the production of 43 MBT vehicles and related Systems Technical Support.

Production of the vehicles will be completed at United Defense's Anniston, Alabama facilities in partnership with Anniston Army Depot (ANAD) and Rock Island Arsenal (RIA) in Illinois. The work is scheduled to begin in May 2006 and to be completed by November 2006.

The OSTS-MBT is a tracked surrogate vehicle designed to operationally and visually simulate threat tanks during force-on-force training at the U.S. Army Combat Maneuver Training Centers in Ft. Polk, La., Ft. Irwin, California and Hoenfels, Germany. The vehicle is an M113A3 chassis with an operational two-man turret equipped with simulated tank weapon systems and visual modifications.

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.

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