United Defense Receives More than $44 Million for Production of Naval Guns

United Defense Industries, Inc. (NYSE:UDI) has been
awarded a $44.1 million contract modification by the Naval Sea Systems
Command for the production of three Mk 45 Mod 4 Naval Gun systems.
   The 5-inch, 62-caliber Mk 45 Mod 4 is a fully-automated naval gun
capable of supporting anti-surface, strike, fire support and anti-air
warfare missions. Production work will be performed in Minneapolis,
MN, and Louisville, KY, and is expected to be completed during 2007.
The three guns ordered by the Navy are for installation aboard the
Navy's DDG 110 through DDG 112.
   "Production of major caliber naval gun systems has been an
important part of our history for more than 60 years," said Keith
Howe, Vice President and General Manager of United Defense's Armament
Systems Division. "Today we are building new Mk 45 naval guns,
overhauling existing Mk 45 naval guns, designing and developing a new
155-mm Advanced Gun System for the DD(X) program, and beginning to
build and deliver smaller caliber naval gun systems like the 25-mm Mk
38 Mod 2 Machine Gun and the 57-mm Mk 110 Naval Gun. Delivering naval
guns and new naval gun technology to the Navy is a part of who we are,
and will continue to be a core capability."

   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.