EXHIBIT 99

UNITED INDUSTRIAL CORPORATION
18 EAST 48TH STREET, NEW YORK, NY  10017

Contact:  Susan Fein Zawel
          (212) 752-8787

FOR IMMEDIATE RELEASE


                         UNITED INDUSTRIAL CORPORATION
                         SELLS WEATHER SYSTEMS BUSINESS
                         ------------------------------


         New York, NY, October 3, 1997 -- United Industrial Corporation
(NYSE:UIC) today announced the sale of its AAI Systems Management, Inc. (SMI)
subsidiary to All Weather, Inc., a holding company formed by Ridge Capital,
Northstar Capital, and the management team of SMI. The sale of SMI, which
produces automated weather and environmental reporting systems, is part of
United Industrial's strategy to refocus its resources on building its core
defense and related technology businesses.

         Under the terms of the transaction, United Industrial received cash of
$18.5 million and a five-year subordinated note for $2.375 million. United
Industrial plans to invest the proceeds from the sale in growing its core
business.

         For the six months ended June 30, 1997 and for the year ended December
31, 1996 the net sales of the Weather Systems business were 15.8% and 16.9% of
the United Industrial's consolidated net sales, respectively. Pretax earnings
were 22.3% and 26.3% of the consolidated pretax earnings during corresponding
periods.

         Richard R. Erkeneff, President and Chief Executive Officer of United
Industrial, commented, "The sale of SMI demonstrates our continued progress in
implementing the strategy we announced last December. With the sale of Neo
Products last month, we have now divested two non-core businesses, so that we
can better focus on maximizing the growth potential in our core defense and
related technology businesses."

         United Industrial Corporation is an international high technology
company focused on the design and production of defense, training,
transportation, and energy systems. Its products include unmanned air vehicles,
training and





simulation systems, automated aircraft test and maintenance equipment, and
combat vehicles and ordnance systems. It also manufactures ground transportation
components, combustion equipment for biomass and refuse fuels, and specialized
firefighter training installations.

         Ridge Capital Corporation is a private investment management and 
merchant banking firm based in Barrington, Illinois. Northstar Capital, Ltd. is
a Minneapolis-based investment management company.


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