Allied Defense Group Receives $900,000 Homeland Security Contract

VIENNA, Va., Feb. 1 /PRNewswire-FirstCall/ -- The Allied Defense Group, Inc. (Amex: ADG) announces that its California-based surveillance company, NS Microwave, has received an order for just under $900,000 from an agency of the United States government.

The order is part of an extended multi-year $15 million classified contract with this agency. The order is for surveillance hardware and associated equipment to support ongoing mission requirements for this agency. Due to its classified nature, additional details about the contract may not be disclosed.

Major General (Ret.) John J. Marcello, Chief Executive Officer and President of The Allied Defense Group said, "This order reflects the role NS Microwave plays in meeting our nation's homeland security requirements by providing federal, state, and local governments with customized solutions. We are proud to be a partner in ensuring our national and homeland security interests are served during this critical period."

About NS Microwave

NS Microwave is an industry leader in providing customized Microwave Surveillance Systems to meet complex surveillance security challenges. Proprietary products and services include a complete line of camera concealments, command/control systems, microwave link solutions, helicopter systems and mobile communication trailers. Customers include federal, state, and local law enforcement agencies, in addition to supporting the growing requirements of the Department of Defense in its mission to defend the homeland. For more information, please visit: http://www.nsmicrowave.com.

About The Allied Defense Group, Inc. (formerly Allied Research

Corporation)

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 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.

For more Information, please visit the Company web site: http://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: Crystal B. Leiderman (Bedwell) Director, Investor Relations 800-847-5322 Jim Drewitz, Investor Relations 972-355-6070

SOURCE The Allied Defense Group, Inc.

CONTACT: Crystal B. Leiderman (Bedwell), Director, Investor Relations, of The Allied Defense Group, Inc., +1-800-847-5322; or Jim Drewitz, Investor Relations, +1-972-355-6070, for The Allied Defense Group, Inc.

<<PR Newswire -- 02/02/06>>

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