June 22, 2004

MSC contract for Southwest Marine

United Defense Industries, Inc. (NYSE:UDI) announced the award of a $4.4 million contract to Southwest Marine (SWM), its San Diego, Calif., shipyard, from Military Sealift Command (MSC) for the Post Turnover Availability on the USNS BRIDGE (T AOE 10).

Work is scheduled to begin at SWM on July 27, 2004, and complete on October 13, 2004. If MSC exercises all options, the contract could exceed $5 million. The availability includes habitability and fuel tank modifications, machinery work and life raft modifications.

Southwest Marine is a member of the United States Marine Repair (USMR) family of shipyards, a subsidiary of UDI.

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