United Defense Awarded Contract Worth $19 Million to Remanufacture Marine Corps Assault Amphibious Vehicle

QUANTICO, Va.--Nov. 5, 2003--United Defense Industries, Inc. has received a contract from the United States Marine Corps Systems Command (MARCORSYSCOM) to help upgrade Assault Amphibious Vehicles to the RAM/RS configuration to support active and reserve Marine Corps units.

Also included in the award is funding to continue engineering and logistic support for the PM AAVS. The contract is initially funded at $19 million with a potential total value of $40 million if all options are exercised.

This program is a joint effort with the Marine Corps Logistics Command in Albany, Ga., under the direction of the Program Manager, Amphibious Assault Vehicle Systems (PM AAVS), MARCORSYSCOM, in Quantico, Va. United Defense will remanufacture government furnished AAV7A1 hulls to the RAM/RS (Reliability, Availability and Maintainability/Rebuild to Standard) configuration. United Defense will provide engineering, technical and production material support to the Marine Corps Maintenance Center in Albany for RAM/RS specific parts. The Marine Corps depot in Albany, GA, will repair or replace certain parts and assemble the vehicles, which are scheduled for delivery in 2004 and 2005.

The government furnished hulls will be remanufactured by United Defense's Marine Corps Systems Division (MCSD), which is located at the Marine Corps Logistics Base in Albany, Georgia. Parts manufacturing, and material purchasing will be done by MCSD, supported by United Defense facilities in Aiken, S.C. and Anniston, Ala.

"This program is a continuation of United Defense's long term support for the Marine Corps' Amphibious Assault Vehicle capability," said Mike Kephart, the MCSD Program Manager. "These vehicles will be issued to Fleet Marine Force units to replace vehicles loaded aboard Maritime Preposition Shipping following Operation Iraqi Freedom (OIF). The RAM/RS did an excellent job during the push through Iraq and performed well above expectations throughout their deployment."

The AAV7A1 RAM/RS systems provide superior mobility for transporting Marines and cargo from ship to shore. The RAM/RS version was designed for the U.S. Marine Corps to include a more powerful turbocharged diesel engine and drive train and a Bradley Fighting Vehicle suspension, providing superior durability and maintainability. About two thirds of the amphibious vehicles deployed in support of OIF were RAM/RS improved vehicles.

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.