ATK will be the prime contractor

ADG through MECAR USA will serve as the key subcontractor in the Teaming Arrangement

Order calls for Non-Standard Ammunition for Afghanistan

VIENNA, Va., Dec. 5 /PRNewswire-FirstCall/ -- The Allied Defense Group, Inc. (Amex: ADG stock news) is pleased to announce MECAR USA, its Texas-based wholly owned subsidiary, will receive orders, potentially in excess of $37 million, as a subcontractor to Alliant Techsystems (NYSE: ATK). The $87 million contract has been awarded by the U.S. Army Sustainment Command in Rock Island, Ill, to ATK, to supply non-standard (non-NATO) ammunition in support of emergent requirements for Afghan National Security Forces.

As subcontractor, MECAR USA is responsible for the delivery of various types of non-standard ammunition manufactured throughout the world. Team ATK has utilized its long standing position in the international ammunition community to qualify and secure high quality, reliable and competitive manufacturers and sellers of these rounds for the benefit of its customer and end users.

Major General (Ret) John J. Marcello, President and Chief Executive Officer of the Allied Defense Group, stated, 'I am pleased to announce that MECAR USA teamed with ATK has won this important contract. We believe that in conjunction with ATK, we have developed a compelling value proposition for the US Army.'

'This substantial new ammunition services contract continues to expand our customer base. Traditionally, we have enjoyed a very loyal, client base and it is worth noting that this base continues to grow and expand. ADG's funded backlog now exceeds $186 million and will support our operations into 2010,' Marcello said.

'The fundamentals of our Company are strong and getting stronger,' General Marcello concluded. 'Our transformation continues. We are making sustained, solid progress and we are enthused about the future.'

About The Allied Defense Group:

The Allied Defense Group, Inc. is a diversified international defense firm, which develops, and produces conventional medium caliber ammunition marketed to defense departments worldwide; designs, produces and markers sophisticated microwave security systems. For more information, please visit the Company website: 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:
    Jim Drewitz Investor Relations
    830-669-2466

SOURCE Allied Defense Group, Inc.