United Defense Receives $18.2 Million Contract to Upgrade M113 Tracked Vehicles for Jordanian Armed Forces

Contact:
Herb Muktarian
United Defense
herb.muktarian@baesystems.com
(717) 225-8004

SANTA CLARA, CA, February 1, 2005 - United Defense Industries, Inc. (NYSE: UDI) has been awarded an $18.2 million contract from the U.S. Army for the conversion of 126 M113A1 armored personnel vehicles to the M113A2Mk1 configuration for the Jordanian Armed Forces (JAF).

This contract implements Phase II of the JAF conversion program. Engineering and program management will be performed at United Defense's Santa Clara, Calif. facility. Material procurement and parts kitting will be shared between production facilities in York, Pa. and with FNSS, the United Defense/Turkey joint venture. Final vehicle integration and assembly will be completed at the King Hussein Main Workshops in Jordan. The work is expected to be completed by May 2006.

The upgrade and overhaul provides an increased power to weight ratio and an improved suspension system. With the added automotive capability, integration of mission equipment such as a weapons station and additional armor is feasible without degrading overall performance.

About United Defense
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 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.