United Defense Receives $376 Million U.S. Navy Contract to Continue Gun System and Projectile Development for Future Destroyer

Contact:
Jeff Van Keuren
United Defense, Public Affairs
jeff.vankeuren@baesystems.com
(763) 572-7615

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

MINNEAPOLIS, MN, June 7, 2005 - United Defense Industries, Inc. (NYSE:UDI) has been awarded a $376 million contract from the Naval Sea Systems Command, Washington, DC, for the continuation of design, development and test of the Advanced Gun System (AGS), including the fully automated gun, magazine and the Long Range Land Attack Projectile (LRLAP), for use aboard the Navy's new DD(X) Destroyer.

"This contract award recognizes the importance of the Advanced Gun System and its LRLAP ammunition to the Navy to perform long-range fires in support of the Marines in future land attack scenarios," said Jim Schoppenhorst, program director for the DD(X) program at United Defense, Armament Systems Division. "This award to United Defense by the Navy keeps the development of the AGS and LRLAP on schedule - a key component of the development of the DD(X) ship going forward."

The Advanced Gun System is intended to be a fully automated, single barrel, 155-mm, vertically loaded, stabilized gun mount that is capable of storing, programming, loading, and firing the Long Range Land Attack Projectile. The DD(X) design calls for each destroyer to have two Advanced Gun Systems aboard, with up to 900 rounds of LRLAP ammunition available for the guns. The primary mission for the AGS is Land Attack Warfare in support of ground and expeditionary forces beyond the line-of-sight in the DD(X) System's littoral engagement area, where precise, rapid-response, high-volume, long-range fire support are required.

Work is expected to be completed by September 2010.

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 10K 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.