| Anniston Army Depot Chooses United Defense
to Provide up to $479M of Overhaul Work on Combat Vehicles
Contact:
Cindy Garrison
Steel Products Division
cindy.garrison@baesystems.com
(256) 235-9848
Doug Coffey, Media
United Defense Industries, Inc.
doug.coffey@baesystems.com
(703) 312-6121
ANNISTON, AL, April 25, 2005 - United Defense Industries, Inc.
(NYSE:UDI) received four contracts, which could ultimately total
$479 million, from Anniston Army Depot for its Steel Products Division
to perform "zero hours, zero miles" overhaul maintenance
on the M109A6 Paladin Self Propelled Howitzer, the M88A1 Medium
Recovery Vehicle, the M992A2 Field Artillery Ammunition Supply Vehicle,
and the M9 Armored Combat Vehicle.
The contracts are structured as Requirements contracts, meaning
that actual work is only funded under each contract as and when
the Army provides a specific work order to United Defense. The company
anticipates its first work order this summer. The contracts would
permit a maximum of $153.9 million in work orders during the first
year, and additional amounts during the two succeeding option years.
Each vehicle or its subcomponents awarded under an order must be
overhauled to "like new" condition, in preparation for
combat. “By awarding these contracts to United Defense, the
Depot will be able to more efficiently manage its overflow workload,”
said Mr. Robert Houston, Vice President and General Manager. "We
designed, engineered, and manufactured these vehicles. We offer
vehicle expertise that no one else has. These contracts were competed
and choosing us to execute represents the lowest risk, best value
option for the Depot. In addition, by awarding to United Defense,
the Depot is building onto the successful Private/Public Partnership
that already exists between us on the M113 Family of Vehicles."
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, 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.
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