NEWS RELEASE

 

FOR IMMEDIATE RELEASE Contact: Doug Coffey,
United Defense
703-312-6121
douglas.coffey@udlp.com
Contact: Herb Muktarian,
United Defense
717-225-8004
herb.muktarian@udlp.com
Contact: Gail Walters
CPU Tech
703-251-2565
g.walters@cputech.com
UNITED DEFENSE, CPU TECH ANNOUNCE EXCLUSIVE TEAMING AGREEMENT
TO MODERNIZE ELECTRONIC SYSTEMS FOR COMBAT SYSTEMS

ARLINGTON, VA - October 21, 2002 … United Defense Industries, Inc. (NYSE: UDI) and CPU Technology, Inc. (CPU Tech) today announced an exclusive teaming agreement for land vehicles to apply a critical new electronics technology to solve electronic obsolescence problems in key weapons systems through the use of "System-on-a-Chip" (SOC) technology.

The two companies have successfully completed the first phase of the project, involving the redesign of a vital electronic system using SOC technology. The redesign substantially reduces the size, weight and power usage of the system, increases its reliability and ensures that it can be effectively supported throughout its service life. Vehicle-level testing was initiated just 92 days after project start-up.

"Our joint project illustrates United Defense's unbending commitment to investing in advanced technology, and to providing superior technologies and lifecycle support for the products we provide to our armed services," said Elmer Doty, Vice President and General Manager of United Defense's Ground Systems Division. "We’re excited to team with CPU Tech in resolving obsolescence of electronics in combat systems."

"This program joins two leading companies in an effort that is important to our nation's combat readiness. We are proud to have the opportunity to team with United Defense in introducing the latest and best computing technology into important military products," said Ed King, CEO and Chairman of CPU Tech.

With increasing reliance on electronically controlled weapons systems, armed forces are encountering significant problems with electronic obsolescence. Commercial electronic components commonly in use today have short life-cycles, while military systems may be in service for decades. Over time, these systems can become less reliable, and more difficult and expensive to maintain as they age, reducing military readiness.

About United Defense

United Defense is a leader in the design, development and production of combat vehicles, artillery, naval guns, missile launchers and precision munitions used by the U.S. Department of Defense and allies worldwide, and is America's largest non-nuclear ship repair, modernization and conversion company. To learn more about United Defense, visit www.uniteddefense.com.

About CPU Technology, Inc.

CPU Technology, Inc. has developed patented automated electronic system design and verification technology and methods that radically reduce the cost and time required to modernize systems. Through the application of System-on-a-Chip technology, CPU Tech reduces system size, weight and power usage while dramatically reducing the number of components in the system and eliminating reliance on components that are or may become obsolete. Cost-effective modernization processes improve reliability, ensure long-term availability and support, improve functionality and preserve the customer's investment in valuable software. CPU Tech is a privately held electronic systems company founded in 1989. It is headquartered in Pleasanton, California and has offices in Reston, VA and Layton, UT. Additional information can be found at www.cputech.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 Quarterly Report on Form 10Q for the quarter ended June 30, 2002 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.