United Defense Awarded $8 Million Contract Modification for Servicing Vehicles Returning from Iraq

United Defense (NYSE:UDI) has been awarded an $8 million
contract modification by U.S. Army Tank-automotive and Armaments
Command for reconstitution of vehicles returning from Iraq.
   The contract covers armored personnel carriers, self-propelled
howitzers, artillery ammunitions resupply vehicles and Bradley
Fighting Vehicles from the 1st Cavalry Division. Reconstitution
involves detailed vehicle inspections, replacement of damaged or worn
parts, and performance of annual services.
   The work will be conducted at Ft. Hood, Texas under a modification
to a Systems Technical Support contract, and is expected to be
completed about six months after the receipt of the vehicles.

   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, 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.