Allied Research Corporation Acquires Belgian Video Surveillance and Telecommunications Firm.

VIENNA, Va.--(BUSINESS WIRE)--Dec. 15, 1999--

Allied Research Corporation, (AMEX: ALR), a diversified defense and commercial electronic security firm, said today that one of its Belgian units, The VSK Group, had acquired VIGITEC, a Brussels-based video surveillance and telecommunications firm, in an all-cash transaction.

Glenn Yarborough, President and Chief Executive Officer of Allied Research said: "This acquisition fills a key niche in our drive to make VSK the one-stop choice in high-end integrated electronic security. With this move, VSK has it all: good product, engineering, service and a very strong marketing team. We are backing them all the way in their drive to make sure customers have seamless solutions to their security needs. We are very proud of VSK and its management team and the way they continue to build on their success."

"Acquiring VIGITEC moves us another step in our planned diversification. Remember that our goal is to reward our shareholders with greater value. This is another forward step in making our team even stronger," Mr. Yarborough added.

Certain statements contained herein are "Forward Looking" statements as such term is defined in the Private Securities Litigation Reform Act of 1995. Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied. Factors that could cause actual results to differ materially from those expressed or implied include, but are not limited to, those discussed in filings by the Company with the Securities and Exchange Commission.

Allied Research Corporation is a defense and commercial electronic security firm. Its operating units develop and produce ammunition and weapon systems; supply equipment performance upgrades for defense departments worldwide; and design, produce and market sophisticated commercial electronic security and access control systems.