United Defense Awarded $7.6M Contract Modification to Procure Mod Kits to Fit Paladin, FAASV For Newest Ammunition

YORK, Pa.--Sept. 10, 2003--United Defense Industries, Inc. has been awarded a $7.6 million contract modification to procure kits to modify M109A6 Paladin self-propelled howitzers and M992 Field Artillery Ammunition Supply Vehicles (FAASVs) for the newest U.S. Army projectile and propelling charges.

Under the modification issued by the Army's Tank-automotive and Armaments Command to an existing Systems Technical Support contract, United Defense will provide 219 sets of modification kits in association with the Army's new Modular Artillery Charge System (MACS) and to incorporate provisions for the 155mm precision guided, extended range Excalibur projectile under development by the Army, the Swedish defense procurement agency, Raytheon and United Defense Industries, Inc. subsidiary, Bofors Defense AB.

"This award is part of the ongoing effort to ensure that Paladin remains compatible with the latest munition technologies, and continues to provide our soldiers with indispensable lethality on the modern battlefield," said Adam Zarfoss, United Defense Program Director for M109 Vehicle Systems.

The 219 sets of kits will retrofit the first portion of the Army's Paladin and FAASV fleet, with deliveries scheduled to begin in early 2004. The Army has more than 950 Paladins and over 930 FAASVs in inventory.

About United Defense Industries, Inc.

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.

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, 2002, the Quarterly Report on Form 10-Q for the quarter ended June 30, 2003, and 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.