United Defense Receives Contract Modification Worth $12.8 Million for Marine Corps Assault Amphibious Vehicles

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

SANTA CLARA, CA, June 21, 2005 - United Defense Industries, Inc. (NYSE: UDI) has received a $12.8 Million contract modification from the U.S. Marine Corps Systems Command to upgrade 56 Assault Amphibious Vehicles (AAV7) to the RAM/RS configuration to support Marine Corps units.

This program is a joint effort with the Marine Corps Logistics Command in Albany, Ga., under the direction of the Program Manager, Amphibious Assault Vehicle Systems, Marine Corps Systems Command, in Quantico, VA. Under this modification, United Defense will remanufacture government furnished AAVP7 hulls to the RAM/RS (Reliability, Availability and Maintainability/Rebuild to Standard) configuration.

Under the contract, machining and procurement of parts for the government furnished hulls will be done at United Defense's facility located at the Marine Corps Logistics Base in Albany, Ga. Vehicles are being assembled by depot personnel. Work will be completed during 2006.

The AAVP7 RAM/RS system provides superior mobility for transporting troops and cargo from ship to shore. The RAM/RS version was originally designed for the U.S. Marine Corps to include a more powerful turbocharged diesel engine and power train and a Bradley Combat System suspension, providing superior durability and maintainability.

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.