United Defense Receives $9.9 Million Contract to Provide Engines for HERCULES Recovery Vehicles

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

YORK, PA, February 3, 2005 - United Defense Industries, Inc. (NYSE: UDI) has received a $9.9 million not-to-exceed contract modification from the U.S. Army Tank-automotive and Armaments Command to provide spare engines for the Army's primary combat recovery system.

The contract calls for the procurement and delivery of 20 spare engines for the M88A2 HERCULES recovery vehicle. This work is funded initially at $5 million. Procurement work will be conducted at the company’s York, Pa. facility, with deliveries scheduled for February 2006 through October 2006.

The M88A2 HERCULES provides unmatched capability in recovering today's 70-ton combat vehicles. With the lowest acquisition, operational and maintenance cost of any 70-ton capable recovery system, HERCULES meets the need for cost-effective, self-supporting heavy recovery performance. Key enhancements in the M88A2 include improved power-assisted braking, improved steering, improved electrical system and increased engine horsepower providing soldiers and Marines with 25 percent more towing muscle, 40 percent more lifting strength and 55 percent more winching power in meeting any mission requirement.

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 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.