United Defense Industries, Inc. (NYSE:UDI) announced an advanced planning award for a five-year, multi-ship-multi-option, cost-plus, award fee contract for work on seven Ticonderoga-class Aegis cruisers home ported in San Diego.

The contract, awarded to UDI’s Southwest Marine shipyard by Southwest Regional Maintenance Center, could reach $44 million, if the Navy exercises all options. The work is scheduled to begin this year and complete in 2009.

The work package includes planning, nine Selected Restricted Availabilities, two Dry Docking Selected Restricted Availabilities, continuous maintenance and emergent ship maintenance.

The seven ships in the contract are USS MOBILE BAY (CG 53), USS BUNKER HILL (CG 52), USS SHILOH (CG 67), USS PRINCETON (CG 59), USS ANTIETAM (CG 54), USS LAKE CHAMPLAIN (CG 57) and USS CHANCELLORSVILLE (CG 62).

Guided missile cruisers are multi-mission surface combatants capable of supporting carrier battle groups and amphibious forces. These ships also operate as flagships of surface action groups. Tomahawk cruise missiles give them additional long range striking capability. The first Tomahawk missile fired into Iraq on March 20, 2003, was launched from the USS BUNKER HILL.

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 10K 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.