United Defense Awarded $6 Million Contract for Surrogate Training Vehi

    Business Editors/Defense Writers

    SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 31, 2005--United Defense (NYSE:UDI) has been awarded a $6 million contract to produce seven additional Opposing Forces Surrogate Training System (OSTS) - Main Battle Tank (MBT) vehicles for the U.S. Army, adding to a December 2004 contract modification for the production of 43 MBT vehicles and related Systems Technical Support.
    Production of the vehicles will be completed at United Defense's Anniston, Alabama facilities in partnership with Anniston Army Depot (ANAD) and Rock Island Arsenal (RIA) in Illinois. The work is scheduled to begin in May 2006 and to be completed by November 2006.
    The OSTS-MBT is a tracked surrogate vehicle designed to operationally and visually simulate threat tanks during force-on-force training at the U.S. Army Combat Maneuver Training Centers in Ft. Polk, La., Ft. Irwin, Calif. and Hoenfels, Germany. The vehicle is an M113A3 chassis with an operational two-man turret equipped with simulated tank weapon systems and visual modifications.

    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 10 K for the year ended December 31, 2003 and 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.

--30--JM/ph*

CONTACT: United Defense Industries, Inc. Herb Muktarian, 717-225-8004 herb_muktarian@udlp.com

KEYWORD: CALIFORNIA ALABAMA ILLINOIS INDUSTRY KEYWORD: BANKING AEROSPACE/DEFENSE GOVERNMENT MARKETING AGREEMENTS SOURCE: United Defense Industries, Inc.

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