United Defense Receives Contract Modification to Return Bradley Combat System Vehicles to Combat Ready Condition

United Defense Industries, Inc. (NYSE:UDI) has been
awarded a contract modification on a cost-plus-fixed-fee basis worth
up to $33.3 million from the U.S. Army Tank-automotive and Armaments
Command (TACOM) to reset Bradley Combat System vehicles returning from
Iraq.
   United Defense, in partnership with the Army's Red River Army
Depot (RRAD), will return 61 Bradley A3 and 40 Bradley A2 Operation
Desert Storm (ODS) vehicles to a combat ready status under this
modification to a multi-year corporate contract. Disassembly and
component overhaul work will be performed at RRAD and United Defense
in Fayette County, PA. Final assembly and test will be conducted at
United Defense's York, Pa. facility.
   Work on this effort, which is funded initially at $16.7 million,
begins immediately.

   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.