The Netherlands Sign Contract For PzH 2000 Self-Propelled Howitzers
(Source : Krauss Maffei Wegmann ; issued May 1, 2002)

On May 1st, 2002 in The Hague, The Netherlands, the Directeur Materieel, Major General W.H. Zoomers, and the president of Krauss-Maffei Wegmann (KMW), Dr. Manfred Bode as well as KMW member of the board, Dr. Werner Zimni, have signed the procurement contract for 57 PzH 2000 self-propelled howitzers and peripheral equipment for its future operation in the Royal Netherlands Army. Delivery will start in 2004 and be concluded in 2009.

In The Netherlands, the PzH 2000 is to replace the older systems M 114 and M 109, which no longer meet today's battlefield requirements for artillery systems. By being selected, PzH 2000 beat off competitors from the USA, South Africa, and the United Kingdom.

This contract between The Netherlands and Krauss-Maffei Wegmann again underlines the excellent relations, which have been existing for several decades with programs like Leopard 1, Leopard 2, Cheetah, Fennek and Simulators or just recently the trilateral GTK/MRAV/ PWV Multi-Role Armored Vehicle development. These good relations are now being enhanced to the field of artillery systems as well.

The contract confirms the outstanding technology and user acceptance of PzH 2000 as the most modern artillery system at this time available on the world market. With PzH 2000, The Netherlands enters into the next generation of artillery performance both in technical and tactical matters.

NATO partner Italy, too, has already selected PzH 2000 and decided its procurement. Contracts may be signed as well within this year. Sweden has started a 2 years "Demonstrator Program" with PzH 2000 since October 2001. So, PzH 2000 will soon be jointly operated in Europe, logistically supported by a logistic partnership between the user countries. This makes for essential operational and life cycle cost reductions.

The Netherlands will receive the PzH 2000 with a high level of reliability and availability, proven by the German Army during its in service time since 1998 with 185 systems to be delivered until 2002. Greece's 24 PzH 2000 systems will be delivered between 2003 and 2004.

The implementation of the program will also involve very capable Dutch industry partners as subcontractors for coproduction work for PzH 2000 on various technological levels.

KMW is proud having received the confidence of yet another user country for PzH 2000, which already now can be considered as the standard howitzer of the future.


--- United Defense Industries said today that the House Armed Services Committee voted May 1 to bar any termination of the Crusader prior to the completion of the program's next major review in April 2003.

The company emphasized that it has not seen any formal decision by the Department of Defense on the future of the program, nor does it expect any decision before a DOD study is completed.

According to the company, the program has strong support from the Army and equally strong bipartisan support from Congress because it is on schedule, meeting or exceeding the Army's performance expectations and on budget, a record of accomplishment that is not shared by a number of other defense programs currently under review. In addition, the company said the Army intends to field the Crusader as an essential part of its future combat force because it will accelerate the Army's transformation and strengthen our nation's defense capabilities.

According to United Defense President and CEO Tom Rabaut, "We believe the Army continues to strongly support Crusader because it meets a critical need for its transformation."

Crusader Facts:

--The Crusader is the U.S. Army's first fully automated and digitized long-range precision strike weapon system for modern ground warfare.
--The Crusader is a highly mobile and agile cannon system with advanced technology that enhances the Army's ability to detect, evade and destroy hostile forces. This technology includes digital cockpit automation, munitions handling robotics, projectile tracking radar, actively cooled cannon and advanced materials and composites for strength, survivability and vehicle weight reduction.
--United Defense has designed, developed and tested the Crusader under a program that is on time and on budget. The next phase will deliver the first operational prototypes to the Army in October 2004.

For a more extensive description of the Crusader program and its financial importance to United Defense, please refer to the pertinent portions of our SEC Form 10-K report (click here to read form)

for the year ended December 31, 2001 and our SEC Form 10-Q report for the quarter ended March 31, 2002.

United Defense has a balanced portfolio of development and production contracts, including the Bradley Fighting Vehicle, the Mk 45 (Naval) Gun System and other technologically advanced weapon and combat vehicle systems for the U.S. military and allies worldwide.

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.


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