The Allied Defense Group Announces MECAR USA Receives $11.5 Million Contract to Deliver...

The Allied Defense Group Announces MECAR USA Receives $11.5 Million Contract
to Deliver NATO Ammunition
MECAR USA Adds Another International Client to its Growing List of Customers

VIENNA, Va., May 20 /PRNewswire-FirstCall/ -- The Allied Defense Group,
Inc. (Amex: ADG) announces it has received a contract exceeding $11.5 million
to deliver NATO ammunition to a former Soviet Union republic. The contract
will be fully executed for ADG by its subsidiary MECAR USA in the 2nd quarter
of 2008 with revenues recognized this year. Confirmed backlog at MECAR USA
has grown to over $20 million so far this year.
This win represents another step in the evolution of the MECAR USA
ammunition services business sector. That model provides products and
services from an expanding network of reliable suppliers to growing list of
clients. Meaningful diversification in this regard is a function of our
extensive experience and extraordinary understanding of weapon systems,
ammunition, and associated military products, as well as detailed knowledge of
quality control, export regulations and international shipping procedures.
Major General (Ret.) John J. Marcello, President and Chief Executive
Officer of The Allied Defense Group, said, "This noteworthy achievement adds
to Allied's previously announced confirmed backlog of over $161 million and
represents a tenfold increase in revenues so far this year for our Marshall,
Texas facility. MECAR USA is now engaged in the proposal process for
ammunition services for the United States Government which could very well
exceed $100 million this year."
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: 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, please visit the Company web site:
www.allieddefensegroup.com
For More Information, Contact:
Jim Drewitz, Investor Relations
830-669-2466
SOURCE The Allied Defense Group

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