United Defense Industries, Inc. (NYSE:UDI) announced an $11 million fixed-price contract award to NORSHIPCO, its Norfolk, Va., shipyard, for dry docking and reactivation of the USNS JOSHUA HUMPHREYS (T-AO 188).

Logistics Command Atlantic in Norfolk, VA., made the initial award which, if all options are exercised, could reach over $13 million. The work is scheduled to begin on March 1, 2005, and complete on May 30, 2005. The work package includes towing the vessel from its berth in Philadelphia, dry-docking, hull painting, tank inspections, reactivation of main and auxiliary propulsion equipment, communication and navigation systems, piping systems and underway replenishment equipment.

The ship, decommissioned in June 1996, was the second ship in the Henry J. Kaiser – class of Military Sealift Command fleet replenishment oilers. The vessel is currently berthed at the Naval Inactive Ship Maintenance Facility in Philadelphia, PA. Underway replenishment oilers provide fuel replenishment to Navy combat ships and jet fuel for aircraft aboard carriers at sea.

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 September 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.