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

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