United Defense Receives More than $44 Million for Production of Naval Guns

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

MINNEAPOLIS, MN, June 16, 2005 - United Defense Industries, Inc. (NYSE:UDI) has been awarded a $44.1 million contract modification by the Naval Sea Systems Command for the production of three Mk 45 Mod 4 Naval Gun systems.

The 5-inch, 62-caliber Mk 45 Mod 4 is a fully-automated naval gun capable of supporting anti-surface, strike, fire support and anti-air warfare missions. Production work will be performed in Minneapolis, MN, and Louisville, KY, and is expected to be completed during 2007. The three guns ordered by the Navy are for installation aboard the Navy’s DDG 110 through DDG 112.

"Production of major caliber naval gun systems has been an important part of our history for more than 60 years," said Keith Howe, Vice President and General Manager of United Defense's Armament Systems Division. "Today we are building new Mk 45 naval guns, overhauling existing Mk 45 naval guns, designing and developing a new 155-mm Advanced Gun System for the DD(X) program, and beginning to build and deliver smaller caliber naval gun systems like the 25-mm Mk 38 Mod 2 Machine Gun and the 57-mm Mk 110 Naval Gun. Delivering naval guns and new naval gun technology to the Navy is a part of who we are, and will continue to be a core capability."

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.