United Defense's Swedish Subsidiary Receives Contract from Finland fo

    Business Editors/Defense Writers

    KARLSKOGA, Sweden--(BUSINESS WIRE)--Feb. 7, 2005--The United Defense Industries, Inc. (NYSE:UDI) wholly owned subsidiary, Bofors Defence AB, has received a contract valued at EUR 11 million ($14 million) from Finland for two 57-mm Mk 3 Naval Guns.
    The contract provides for the production and installation of the two 57-mm guns for Finland's patrol ships of the Squadron 2000 class. Bofors Defence is completing an earlier contract for the production of the first two 57-mm guns for the same ship class.
    The new contract provides for the production of the gun systems, training services, spares, and the associated 57-mm 3P ammunition with delivery of first gun in 2005 and the second in 2006.
    "This second contract for our 57-mm naval guns clearly demonstrates the success of the Mk 3 in satisfying Finland's requirements for its latest naval gun system," said Magnus Ingesson, President of Bofors Defence AB. "Furthermore, the Mk 3 gun is supported by our exceptional 3P ammunition, making this gun and ammunition combination the most accurate and lethal weapon in its class."
    The 57-mm Mk 3 Naval Gun System is in service with the navies of Sweden, Finland, Mexico, and the United States. In the United States, the 57-mm gun system has been selected for service aboard the U.S. Navy's DD(X) Destroyer class, the U.S. Navy's Littoral Combat Ship class, and the U. S. Coast Guard's Maritime Security Cutter - Large (Deepwater Program).

    About Bofors Defence, AB

    Bofors Defence, A.B., a leading provider of intelligent systems and munitions, is a Swedish defense company wholly owned by United Defense Industries, Inc. Bofors Defence is recognized globally for its end-to-end competencies in the design, development, and production of intelligent munitions, artillery systems, naval gun mounts, and combat vehicle weapon stations. For additional information, visit the Bofors Defence website at http://www.boforsdefence.com.

    About United Defense Industries, Inc.

    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.

    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 as well as 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--RB/ph*

CONTACT: United Defense Industries, Inc. Communications: Christer Heneback (Sweden), + 46 586 81240 christer.heneback@boforsdefence.se or Public Affairs: Jeff Van Keuren (United States), (763) 572-7615 jeff.van.keuren@udlp.com

KEYWORD: FINLAND SWEDEN INTERNATIONAL EUROPE INDUSTRY KEYWORD: AEROSPACE/DEFENSE GOVERNMENT PRODUCT MARKETING AGREEMENTS SOURCE: United Defense Industries, Inc.

Copyright Business Wire 2005