United Defense Completes Purchase of Advanced Ceramic Armor Supplier

ARLINGTON, Va.--March 2, 2004--United Defense Industries, Inc. announced today that it has completed the acquisition of Cercom, Inc. of Vista, Cal., an advanced ceramic materials producer and supplier of light-weight ceramic armor for $21 million. Cercom revenues exceeded $17M in 2003 and are expected to roughly double in 2004.

The acquisition boosts United Defense's expertise in designing survivability solutions that already include work in specialty metals and composites.

Founded in 1985, Cercom is a world leader in the technology, development, and manufacturing of advanced non-oxide ceramic materials. The company serves markets in armored survivability solutions for personnel protection, helicopters, combat vehicles, and trucks; wafer processing consumable components for semiconductor fabrication; and nuclear pump seals and wear components for industrial products. CERCOM is located in Vista, CA with state-of-the-art vacuum hot press ceramic production, as well as research and development facilities. To learn more about Cercom Inc., visit http://www.cercomceramics.com.

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 as well as its Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2003, 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.