The Allied Defense Group and ATK Team Wins First Direct Fire Ammunition Contract

VIENNA, Va. , April 14 /PRNewswire-FirstCall/ -- The Allied Defense Group, Inc. (Amex: ADG) announces the teaming relationship it created with Alliant Techsystems (ATK), a $4.1 billion premier aerospace and defense company, to pursue opportunities in the conventional direct fire ammunition market, has led to their first ammunition contract valued at approximately $7.4 million over a 2-year time period. MECAR USA, teaming with ATK, will receive approximately $3.5 million during the 2-year period.

The ADG/ATK team won the first joint pursuit they identified, the M467A1 105mm training ammunition for the US Stryker MGS vehicle. The total award is for approximately 3,700 rounds per year for 2 years. During this pursuit, the team focused on ATK's strengths in systems management and technical expertise and ADG's strengths in product design and reliability, production excellence and cost control.

Major General (Ret.) John J. Marcello , President and Chief Executive Officer of The Allied Defense Group, said, "This award reinforces our decision to team with such an outstanding partner as ATK. We are particularly pleased with the positive comments from the procurement agency. The team is focused on exceeding the customer's expectations for this contract. As we go forward ADG and ATK continue to evaluate other opportunities in the large caliber direct fire domestic market as well as numerous other areas of potential cooperation.

"With a contractual backlog of more than $140 million and an unfunded backlog of over $80 million, this is another important step in our business diversification plan to help Allied Defense offset our reliance on our traditional customers and contribute to our efforts to smooth out the cyclical nature of our ammunition business. Our plan is working, we are succeeding, and improving shareholder value."

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.

About Alliant Techsystems Inc.

ATK is a premier aerospace and defense company with more than 17,000 employees in 21 states and over $4.1 billion in revenue. News and information can be found on the Internet at www.atk.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, Inc.



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