United Defense 57-MM Naval Gun Selected for Use aboard U.S. Navy DD-X Destroyer

MINNEAPOLIS--(BUSINESS WIRE)--Oct. 25, 2004--United Defense Industries, Inc. (NYSE:UDI) announced today that the U.S. Navy has approved the 57-mm Mk 110 Naval Gun as the Close-In Gun System (CIGS) for the baseline design of the new DD(X) Destroyer program.

"Raytheon and United Defense conducted an exhaustive study before recommending the 57-mm gun as the best solution for the DD(X) destroyer CIGS mission," said Jim Schoppenhorst, United Defense program director for the DD(X) program.

DD(X) is the centerpiece of a family of ships that will operate within the construct of the Surface Combatant Navy to deliver a vast range of warfighting capabilities that are designed to maximize and revolutionize the combat capability of the Fleet. The function of the Mk 110 Naval Gun is to provide key ship self-protection and attack capabilities. The Mk 110 will work in concert with other combat systems being developed by United Defense, such as the ship's 155-mm Advanced Gun System (AGS) and the MK 57 Vertical Launching System.

The Mk 110 Naval Gun Mount is the United States version of the 57-mm Mk 3 Naval Gun, built by Bofors Defence of Sweden, a wholly owned subsidiary of United Defense. In September of 2003, the Mk 110 Mod 0 was selected for service aboard the U.S. Coast Guard's new Maritime Security Cutter - Large (formerly the National Security Cutter), under the Coast Guard's Deepwater Program.

This versatile gun system is paired with the Bofors Defence family of 3P (Pre-fragmented Programmable Proximity fuzed) ammunition for combating aerial, surface, and ground targets. This ammunition, designated as the Mk 295 Mod 0, gives the Mk 110 Naval Gun increased tactical flexibility and ammunition effects.

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

Jeff Van Keuren,




Doug Coffey,