Carlyle Statement on United Defense Industries Share Ownership

Washington, DC - Global private equity firm, The Carlyle Group, today issued the following statement regarding its ownership of shares in United Defense Industries.

Several recent news articles implied that The Carlyle Group has plans to sell its remaining shares in United Defense Industries. This is incorrect. Statements made by a Carlyle official were taken out of context. At this time, Carlyle has no present intention to sell any shares in United Defense and is not able to do so until expiration of a lock-up agreement on October 29, 2003.

As a financial investor, Carlyle continually evaluates its alternatives with respect to all of its investments and eventually exits each of its investments, though at this time Carlyle has no present intention to exit its investment in United Defense. Following expiration of the existing lock up agreement, Carlyle may retain its stake in United Defense or may, from time to time, sell all or part of its shares in United Defense, depending on the prevailing market conditions and other factors.

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