United Defense to Purchase Composite Design and Production Business in California

ARLINGTON, Va.--Jan. 2, 20049, 2004--United Defense Industries, Inc. announced today that it has expanded its capabilities in the design and fabrication of lightweight materials for naval and ground combat systems by entering into an agreement for the purchase of Kaiser Compositek, Inc., of Brea, California.

The acquisition is expected to close during the first quarter of 2004. Kaiser Compositek is a full service provider to government and industrial sectors with particular emphasis on primary structures fabricated with polymeric composites. Kaiser provides sophisticated design, analysis, prototyping, and development capabilities and has a manufacturing capability with a full array of composite processes, including filament winding, resin transfer molding, autoclave molding, compression molding, and surface finishing. Kaiser Compositek had 2003 revenues exceeding $14 million.

"Our naval and ground combat customers are transforming their forces with lighter weight combat systems," said Keith Howe, Vice President and General Manager of the Armament Systems Division of United Defense. "The acquisition of Kaiser Compositek is a perfect fit for our ongoing efforts to substitute lightweight composites and other advanced materials for traditional metal components in the designs of current and future weapon systems."

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, 2002, the Quarterly Report on Form 10 Q for the quarter ended September 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.