United Defense Subsidiary Wins 5-Year Support Contract

Contact:
Doug Coffey, Media
United Defense
doug.coffey@udlp.com
(703) 312-6121

ARLINGTON, VA, January 21, 2003 - A subsidiary of United Defense Industries, Inc. (NYSE: UDI) ), Barnes & Reinecke, Inc., has been awarded a five-year omnibus acquisition and life cycle support contract by the Army.

The support and services contract has a maximum potential dollar value of $75,000,000 through individually competed task orders. The contract provides the services necessary to ensure the successful execution of its acquisition mission for Combat Support and Combat Service Support systems.

The indefinite delivery, indefinite quantity type contract with the Army's Program Executive Office for Combat Support and Combat Service Support is for administrative, management and technical service support in 28 areas including project/product management, life cycle management, product assurance and testing, and technical engineering and logistics support for assigned weapons and support equipment.

"We are looking forward to working as part of the PEO CS&CSS Team. We are committed to help them achieve their mission to capitalize on the emerging technologies that will ensure that the best products are available to support the Objective Force and beyond," said Mike Flynn, President & CEO of Barnes & Reinecke, Inc.

The PEO CS&CSS oversees 19 project and product manager organizations who on a daily basis manage and support over 300 programs in support of Army, Reserve, Guard, Marine Corps, Joint Service, Security Assistance/Foreign Military Sales and Homeland Defense requirements.

"We are pleased to see Barnes & Reinecke, Inc. of United Defense selected to team with us executing the daunting task of transforming the Army's Combat Support and Combat Service Support Weapon Systems into 21st century Army platforms and systems in sync with the Army's Objective Force vision," said Randal C. Gaereminck, Deputy Program Executive Officer. "I welcome the innovative thinking, expertise, talents and resources BRI brings to the collective table and team."

Barnes & Reinecke won the contract by putting together a team of 16 best-of-class organizations including Southwest Research Institute, TRW, Lear Siegler Services, Oshkosh Truck Corporation, Stewart and Stevenson, VSE, S&B Infrastructure, EG&G Technical Services and several small and small-disadvantaged businesses such as Integrated Concepts and Research Corporation, Premier Communications Group and EKM.

About United Defense
United Defense is a leader in the design, development and production of combat vehicles, artillery, naval guns, missile launchers and precision munitions used by the U.S. Department of Defense and allies worldwide, and is America's largest non-nuclear ship repair, modernization and conversion company. To learn more about United Defense and Barnes & Reinecke, Inc., visit http://www.uniteddefense.com. and http://www.briwebsite.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 Quarterly Report on Form 10Q for the quarter ended September 30, 2002, 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.