The Allied Defense Group, Inc. Announces Ammunition Manufacturing and Assembly Joint Venture in Jordan

VIENNA , Va., April 2, 2008 /PRNewswire-FirstCall/ -- The Allied Defense Group, Inc. (Amex: ADG) announces its Belgian subsidiary, MECAR SA, has entered into a joint venture with King Abdullah II Design and Development Bureau (KADDB), an independent Jordanian government entity, and DMV Holdings LLC, an international investment and marketing company, to establish an ammunition manufacturing and assembly facility in Jordan for small caliber cartridges cases and bullets, as well as assembly of large caliber charges and tank ammunition.

MECAR is an integral and strategic partner of the JV because it has the necessary technical & operational experience, manufacturing & assembly equipment and intellectual property required to develop and produce a comprehensive range of conventional ammunition including small, medium and large caliber ammunition. For MECAR this JV presents not only an initial sales opportunity of equipment and technical know-how but also an opportunity for annual recurring product sales to the joint venture company.

Major General (Ret) John J. Marcello, President and Chief Executive Officer of The Allied Defense Group said, "We are extremely pleased to enter into this agreement with the Jordanian government's KADDB and DMV Holdings LLC. Jordan offers a great investment and business environment and we are particularly proud to be able to support the Jordanian Armed Forces, a new client

"The worldwide small caliber market is currently suffering from a shortage of production capacity due to large increases in usage in certain theatres. MECAR, as part of the joint venture company, expects sales to be primarily to the Jordanian Armed Forces at the outset, but will add customers in the Middle East and North Africa thereafter."

Dr. Moayad Samman , Chairman and CEO, of KADDB expressed that "KADDB is looking forward to this partnership; applying the know-how, technical and operational experience of both MECAR and DMV Holdings in Jordan shall open new markets for all parties for the small, medium and large caliber ammunition."

About The Allied Defense Group, Inc.

The Allied Defense Group, Inc. is a diversified international defense and security firm which: develops and produces conventional ammunition marketed to defense departments worldwide; designs, produces and markets sophisticated electronic and microwave security systems principally for European and North American markets; manufactures battlefield effects simulators and other training devices for the military; and designs and produces state-of-the-art weather and navigation software, data, and systems for commercial and military customers.

About KADDB:

King Abdullah II Design and Development Bureau (KADDB) is an independent Governmental military-civilian agency established through the Royal Decree of His Majesty King Abdullah II. An indigenous, self-sufficient, commercially viable research and development facility, KADDB acts as a catalyst within Jordan for the design and manufacture of defense and commercial equipment and services, intended for use by both the Jordanian Armed Forces and for the civilian and military export markets elsewhere in the greater Middle East . With corporate headquarters in Amman , KADDB is structured into three strategic business units comprising of a Manufacturing Group, an Engineering Group and Programs Group. KADDB is the Jordanian research and development facility created to provide a one-stop solution for the supply of defense and commercial equipment optimized to meet the requirements of the Middle East .

About DMV Holdings, LLC:

DMV Holdings, LLC is a US based international investment company with varied business interests and strategic alliances regionally and in the United States . Based outside of Washington DC , in the State of Maryland, DMV Holdings, LLC brings significant experience in a wide array international marketing, communications and investment disciplines.

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.

SOURCE The Allied Defense Group, Inc.