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Crusader System Gets Boost From Pentagon

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Bloomberg News

United Defense Industries Inc., controlled by Carlyle Group Inc., would get $4.1 billion from the Pentagon over the next five years for its Crusader artillery system, according to internal budget documents.

United Defense got 16% of its sales last year from the Crusader and went public largely in anticipation of the program, analysts said. The Pentagon’s budget calls for $475 million in fiscal 2003 for research, with procurement increasing to $1billion by 2007.

The Army argued that the mobile howitzer is vital to its transformation to a lighter, more agile force. The Crusader was criticized as too heavy, so United Defense cut its weight by 25% to 41 tons. Shares of Arlington, Va.-based United Defense rose 10 cents to $20.85 on the NYSE.

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