United Defense Awarded Contract by National Automotive Center for Next Generation Tactical Wheeled Vehicle Concepts

YORK, Pa.--Nov. 3, 2003--

United Defense To Support TACOM To Develop Mobile, High-Performance, Hybrid-Electric, Fuel-Efficient Demonstrator Design

United Defense Industries, Inc. has been awarded a $480,000 contract by the National Automotive Center (NAC) for the next generation tactical wheeled vehicle (NGTWV) project. The contract calls for United Defense to define requirements, perform engineering analysis, refine concepts and conduct trade-off studies to help the U.S. Army meet deployment and sustainment goals for future vehicle programs.

This NGTWV concept exploration effort includes modeling and simulation work with a follow-on option for integrating key technologies on a tactical wheeled vehicle demonstrator. Modeling and simulation work, and potentially a vehicle demonstrator, is to be provided by NAC to the Army's Tank-automotive and Armaments Command (TACOM) to assist in meeting transformation goals.

"We are committed to designing and developing advanced military vehicles in modeling and simulation environment, followed by rapid prototyping using our proven systems engineering processes," said Elmer Doty, Vice President and General Manager of United Defense Ground Systems Division. "This award is a natural evolution of the type of advanced design work we are undertaking for other military vehicle systems to meet the current and future needs of our customers."

Under this award, United Defense expects to complete these developmental activities in a digital environment by leveraging the company's extensive combat vehicle knowledge and by applying its state-of-the-art modeling and simulation capabilities. United Defense is scheduled to deliver integrated design models to the NAC early next year for a vehicle that incorporates high-performance, hybrid electric drive, fuel efficiency, cross-country mobility, survivability, low weight, a reduced logistics footprint and internal space efficiency in a variety of constrained transportable platforms, including the C-130. United Defense engineering work on the project will be conducted at company facilities in York, Pa.

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.