United Defense Awarded Contract for Evaluation of BONUS Precision Munition

Testing of Advanced 155-mm Munition Scheduled to Begin in 2005

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

MINNEAPOLIS, MN - January 19, 2005 - United Defense Industries, Inc. (NYSE: UDI) announced today it has been awarded a contract for the delivery and testing of the cannon fired 155-mm BONUS precision munition system by the United States Army.

BONUS, developed by Bofors Defence of Sweden and GIAT Industries of France, consists of a 155-mm spin-stabilized projectile that enhances cannon artillery precision by dispensing two Sensor Fuzed Munition submunitions that are designed to attack and destroy tanks and other armored combat vehicles. It brings to cannon artillery a precise, cost–effective munition for destroying enemy armored and hard targets.

Under the terms of the contract, which will be managed by the U.S. Army's Program Manager - Combat Ammunition Systems at Picatinny Arsenal, United Defense will deliver ammunition in both test and tactical configurations in 2005. This hardware will be used to evaluate and qualify the BONUS munition for employment with U.S.155-mm cannon artillery platforms.

Work on the project will be managed by United Defense at the company's Minneapolis facility. Munition firings and testing, as well as captive flight testing of the BONUS Mk II dual-mode sensor suite, will be conducted at the Army's Yuma Proving Ground near Yuma, Arizona. Work on the contract is projected to be completed by the end of this year.

"Precision munitions, such as BONUS, are going to play a critical role in significantly strengthening the combat effectiveness of the U.S. Army's canon artillery," said Keith Howe, vice president and general manager at the Armament Systems Division. "This contract builds on United Defense'’s position as the premier armament and artillery system prime contractor for the U.S. military."

United Defense will be supported in this program by its teammates and principal sub-contractors, Bofors Defence of Karlskoga, Sweden and GIAT Industries of Versailles, France.

The BONUS system is in serial production in both Sweden and France under multi-year production contracts. BONUS is the only cannon-fired precision munition currently in full rate production.

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 as well as its Quarterly Report on Form 10 Q for the quarter ended September 30, 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.