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The Allied Defense Group, Inc. Receives Foreign Weapons Service Contract for $5.5 Million
Mar 26, 2008 (06:03 AM EDT)


VIENNA, Va., March 26 /PRNewswire-FirstCall/ -- The Allied Defense Group, Inc. announces its wholly owned subsidiary, MECAR USA, has received a $5.5 million indefinite delivery/indefinite quantity (ID/IQ) service contract from the U.S. Army to provide weapons used by foreign military for U.S. military training purposes.

Major General (Ret) John J. Marcello, President and Chief Executive Officer of The Allied Defense Group said, "MECAR USA is growing rapidly. This small Texas facility had approximately $2M in sales in 2007 and has accumulated $12.5M in contracted backlog thus far in 2008. Increased sales and earnings are the direct results of two years of diligence and investment in our business development staff and processes.

"As a company, ADG has successfully implemented new business development initiatives, including strategic partnerships and teaming relationships, penetrated important new markets and expanded our traditional business, added new products and services to accumulate years of backlog. This was a result of our planned and designed expansion in business strategy to consciously grow our customers, markets and products.

"This contract represents an important step in the evolution of the MECAR USA business model. That model supplies our clients with materials, products and now services, which we can either manufacture or procure from an expanding network of reliable suppliers. We are able to diversify in this manner because of our unique knowledge of weapons, weapon systems, ammunitions, and associated military products, as well as specific knowledge of export regulations and international shipping."

About The Allied Defense Group, Inc.

The Allied Defense Group, Inc. is a diversified international defense and security firm which: develops and produces conventional ammunition marketed to defense departments worldwide; designs, produces and markets sophisticated electronic and microwave security systems principally for European and North American markets; manufactures battlefield effects simulators and other training devices for the military; and designs and produces state-of-the-art weather and navigation software, data, and systems for commercial and military customers.

For more information, please visit the Company web site:

Certain statements contained herein are "forward looking" statements as such term is defined in the Private Securities Litigation Reform Act of 1995. Because statements include risks and uncertainties, actual results may differ materially from those expressed or implied and include, but are not limited to, those discussed in filings by the Company with the Securities and Exchange Commission.

For More Information, Contact:

Jim Drewitz Investor Relations

830-669-2466

CONTACT: Jim Drewitz, Investor Relations of The Allied Defense Group,Inc., +1-830-669-2466

Web site: http://www.allieddefensegroup.com/