United Defense Receives Contract Modification to Return Bradley Combat System Vehicles to Combat Ready Condition

Contact:
Herb Muktarian
Ground Systems Division
herb.muktarian@baesystems.com
(717) 225-8004

YORK, PA, June 16, 2005 - United Defense Industries, Inc. (NYSE:UDI) has been awarded a contract modification on a cost-plus-fixed-fee basis worth up to $33.3 million from the U.S. Army Tank-automotive and Armaments Command (TACOM) to reset Bradley Combat System vehicles returning from Iraq.

United Defense, in partnership with the Army’s Red River Army Depot (RRAD), will return 61 Bradley A3 and 40 Bradley A2 Operation Desert Storm (ODS) vehicles to a combat ready status under this modification to a multi-year corporate contract. Disassembly and component overhaul work will be performed at RRAD and United Defense in Fayette County, PA. Final assembly and test will be conducted at United Defense's York, Pa. facility.

Work on this effort, which is funded initially at $16.7 million, begins immediately.

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 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.