Anniston Army Depot Chooses United Defense to Provide up to $479M of O

    Business Editors/Defense Writers

    ANNISTON, Ala.--(BUSINESS WIRE)--April 25, 2005--United Defense Industries, Inc. (NYSE:UDI) received four contracts, which could ultimately total $479 million, from Anniston Army Depot for its Steel Products Division to perform "zero hours, zero miles" overhaul maintenance on the M109A6 Paladin Self Propelled Howitzer, the M88A1 Medium Recovery Vehicle, the M992A2 Field Artillery Ammunition Supply Vehicle, and the M9 Armored Combat Earth Mover.
    The contracts are structured as Requirements contracts, meaning that actual work is only funded under each contract as and when the Army provides a specific work order to United Defense. The company anticipates its first work order this summer. The contracts would permit a maximum of $153.9 million in work orders during the first year, and additional amounts during the two succeeding option years.
    Each vehicle or its subcomponents awarded under an order must be overhauled to "like new" condition, in preparation for combat. "By awarding these contracts to United Defense, the Depot will be able to more efficiently manage its overflow workload," said Mr. Robert Houston, Vice President and General Manager. "We designed, engineered, and manufactured these vehicles. We offer vehicle expertise that no one else has. These contracts were competed and choosing us to execute represents the lowest risk, best value option for the Depot. In addition, by awarding to United Defense, the Depot is building onto the successful Private/Public Partnership that already exists between us on the M113 Family of Vehicles."

    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 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, 2004 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.

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CONTACT: United Defense Industries, Inc. Doug Coffey, 703-312-6121 doug.coffey@udlp.com or Steel Products Division Cindy Garrison, 256-235-9848 cindy.garrison@udlp.com

KEYWORD: ALABAMA DISTRICT OF COLUMBIA INDUSTRY KEYWORD: AEROSPACE/DEFENSE GOVERNMENT MANUFACTURING MINING/METALS MARKETING AGREEMENTS SOURCE: United Defense Industries, Inc.

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