United Defense Industries, Inc. (NYSE:UDI) today announced the $22 million fixed-price contract award for work on USS BATAAN (LHD 5) from the Navy to NORSHIPCO, its Norfolk, Va., shipyard. The contract work is scheduled to start on May 4, 2004 and complete on October 27, 2004.

A second fixed-price contract valued at approximately $1 million for work on USS OSCAR AUSTIN (DDG 79) was also awarded to NORSHIPCO by SUPSHIP Portsmouth, Va., in April 2004. Work on this contract started on April 12 and is scheduled to complete on April 26, 2004.

The major work package items on the USS BATAAN include dry docking, underwater hull blast and coating, main propulsion shafting, well deck modifications, machinery work and A/C plant refrigeration conversion. USS OSCAR AUSTIN is in dry dock undergoing prairie air repairs, hub repairs and repairs to the Controllable Pitch Propeller system.

About United States Marine Repair
NORSHIPCO is a member of the United States Marine Repair (USMR) family of shipyards, a subsidiary of UDI. USMR serves the U.S. Navy, its primary customer, and other defense and commercial customers at ship repair operations in Norfolk, Va.; San Diego, San Francisco and San Pedro, Calif.; Pearl Harbor, Hawaii; and Ingleside, Texas. In the 12-month period ended December 31, 2003 United Defense's Ship Repair and Maintenance Segment reported revenue of $545 million.

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 and 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.