United Defense Awarded $8 Million Contract Modification for Servicing Vehicles Returning from Iraq

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

SANTA CLARA, CA, May 5, 2005 - United Defense (NYSE: UDI) has been awarded an $8 million contract modification by U.S. Army Tank-automotive and Armaments Command for reconstitution of vehicles returning from Iraq.

The contract covers armored personnel carriers, self-propelled howitzers, artillery ammunitions resupply vehicles and Bradley Fighting Vehicles from the 1st Cavalry Division. Reconstitution involves detailed vehicle inspections, replacement of damaged or worn parts, and performance of annual services.

The work will be conducted at Ft. Hood, Texas under a modification to a Systems Technical Support contract, and is expected to be completed about six months after the receipt of the vehicles.

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, 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.