MECAR Rapidly Establishing 105mm Market Dominance

VIENNA, Va., Feb. 13 /PRNewswire-FirstCall/ -- The Allied Defense Group, Inc. (Amex: ADG), today announced that its Belgium-based ammunition subsidiary, MECAR S.A., has received orders totaling approximately $43.5 million. The orders have been placed by a new client in the Middle East, and call for the delivery of MECAR's 105mm tank ammunition over a three year period.

MECAR produces a completely modernized and superior suite of 105mm tank ammunition that supports existing and future technologies and systems, including the APFSDS, High Explosive Anti-Tank (HEAT), HESH and SMK, with their corresponding training rounds. MECAR's suite of 105mm ammunition continues to evolve to satisfy new global defense requirements, establishing the Company as a market leader to militaries around the world looking for lighter alternatives to 120mm tank systems and other munitions.

Major General (Ret.) John J. Marcello, The Allied Defense Group's Chief Executive Officer and President, said, 'We are very proud of MECAR's unparalleled record of excellence in quality, reliability, and responsiveness to its customers. These new orders demonstrate our success over the past several years in expanding our customer and product bases. This sale is another step forward toward our goal of becoming the world's dominant 105mm producer. Both our traditional and new customers continue to see the benefits of working directly with MECAR, and our commitment to our customers, competitive pricing, and quickly available products have helped us expand our global coverage. MECAR's scale and processes have been enhanced by our investments over the past two years to modernize our operations, automate our manufacturing, and improve our quality assurance.'

About The Allied Defense Group, Inc.

The Allied Defense Group, Inc. is a diversified international defense and security firm which: develops and produces conventional medium caliber ammunition marketed to defense departments worldwide; designs, produces and markets sophisticated microwave security systems; and manufactures battlefield effects simulators and other training devices for the military. For more Information, please visit the Company web site: http://www.allieddefensegroup.com.

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:
    Crystal B. Leiderman (Bedwell)
    Director, Investor Relations
    800-847-5322

SOURCE The Allied Defense Group, Inc.

Source: PR Newswire (February 13, 2008 - 9:31 AM EST)

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