United Defense, Battelle Demonstrate Prototype Fuel Cell Power Unit for Bradley Fighting Vehicle

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

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

FT. LAUDERDALE, FL, February 16, 2005 - Battelle and United Defense Industries, Inc. (NYSE: UDI), have teamed to develop and demonstrate a prototype fuel cell auxiliary power unit (APU) on a Bradley Fighting Vehicle that is designed to increase fuel efficiency and reduce logistics burden for the U.S. Army.

The system is designed to provide sufficient power to operate the vehicle’s electronics indefinitely without engaging the main engine. This fuel cell technology was developed at Battelle's laboratories in Columbus, Ohio and Richland, Washington, with funding support from the U.S. Army's Tank Automotive Research, Development and Engineering Center (TARDEC) and its National Automotive Center, The system was integrated into a Bradley Fighting Vehicle by United Defense at its Ground Systems Division facility in Santa Clara, Calif. Both organizations are displaying this technology at the Association of the U.S. Army's Winter Symposium here today through February 18 at the Broward County Convention Center.

Enhancing fuel efficiency while maintaining effectiveness will further enhance the combat effectiveness of the battle-proven Bradley, a key vehicle system for the Army in intense urban combat and rural scenarios. A large percentage of the tonnage in a military deployment is fuel. Increasing fuel efficiency can enhance military responsiveness by easing the logistic burden.

"By combining the strengths and scientific know-how of our two teams, we hope to provide the U.S. military and the troops in the field with an advanced technical solution to a very real problem," said Steve Kelly, Senior Vice President of Battelle's National Security Division.

"Fuel cell technology offers a silent, clean, state-of-the-art enhancement for current force vehicles such as the Bradley," said Andy Hove, United Defense's Director of Bradley Combat systems. "Integration of Battelle's three-kilowatt fuel cell will not only give Bradley crews a silent watch capability, it will also reduce the stress on the main engine, lower the overall fuel consumption and reduce the heat level in and around the vehicle."

About Battelle
Battelle is a global leader in science and technology. Headquartered in Columbus, Ohio, it develops and commercializes technology and manages laboratories for customers. Battelle, with the national labs that it manages or co-manages, oversees 16,000 staff members and conducts $3 billion in annual research and development. Battelle innovations include the development of the office copier machine (Xerox), pioneering work on compact disc technology, medical technology advancements and fiber optic technologies. For more information, visit http://www.battelle.org or contact National Media Relations Manager Katy Delaney at (410) 306-8638 or at delaneyk@battelle.org

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.