United Defense to be Prime
Contractor for U.S.
BONUS Munitions Programs

United Defense announced today it has teamed with Bofors Defence AB and GIAT Industries to lead the 155-mm BONUS precision munitions program for the U.S. artillery munitions market.

BONUS brings to cannon artillery a precise, cost–effective method for destroying enemy armored and hard targets.

It consists of a 155-mm spin-stabilized projectile that enhances cannon artillery precision by dispensing – during flight – two Sensor Fuzed Munition (SFM) submunitions that can attack and destroy tanks and other armored combat vehicles.

Under a teaming agreement signed with Bofors, of Karlskoga Sweden, and GIAT, of Versailles France, in late-October 2004, United Defense will serve as the prime contractor for the U.S.155-mm BONUS.

The BONUS system was developed by Bofors and GIAT and is now in serial production in both Sweden and France under multi-year production contracts.

BONUS is the only cannon-fired precision munition currently in full rate production.

“Cannon artillery plays a critical role in supporting operations where precision is critical,” said Keith Howe, vice president and general manager, United Defense Armament Systems Division.

“BONUS is a proven system that offers that next level of precision and lethality to significantly improve cost-to-kill ratios on enemy targets, while minimizing collateral damage. BONUS is a proven technology that finally brings a cost effective, precision capability to cannon artillery, and provides 24-hour, all-weather fire support to the soldiers on the ground.”

The latest version of BONUS, the BONUS Mark II (MK II), features a dual-mode sensor upgrade that brings significantly enhanced performance to the proven baseline BONUS system.

The new BONUS sensor suite incorporates the baseline infrared sensor with a LADAR-based second sub-system. Upgraded dual-mode sensors for the BONUS submunition are entering the production stream now for deliveries in 2005.

“Fielded with the Swedish and French Armies, BONUS and its MK II upgrade’s performance in testing has proven to be outstanding,” said Howe.

“We are pleased to lead this world class team in pursuit of the U.S. market. As a second-generation precision system, the BONUS MK II will provide unmatched cost effectiveness for America’s fighting forces.”

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.

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