Allied Research Corporation Announces Completion of Sale of Barnes & Reinecke, a Chicago Based Subsidiary, to the Carlyle Group's UDLP Unit.

Business Editors

VIENNA, Va.--(BUSINESS WIRE)--March 10, 2000

Allied Research Corporation (AMEX: ALR), a diversified defense and commercial electronic firm, announced today that it has completed the sale of Barnes & Reinecke, Inc., for an undisclosed amount, to United Defense Limited Partnership, Inc., (UDLP) of Arlington, Virginia. UDLP, an operating unit of privately held by The Carlyle Group, a global investment group, based in Washington, D.C. The closing finalized the purchase agreement signed in mid-December 1999.

Glenn Yarborough, President & Chief Executive Officer of Allied Research, said: "We are pleased that BRI will be part of a group so well suited to their business. The people at Barnes will work well with the UDLP team, but we will surely miss them. This will focus ARC more on our core business."

Quarterdeck Investment Partners, Inc., an international investment-banking firm assisted ARC in this transaction.

UDLP is a $1.2 billion prime contractor of armored weapons systems, which provides superior engineering and system integration skills, proven logistics support capability, and global experience. The Company's 5,000 plus employees are recognized for outstanding research and development in key technologies, the development of combat system operating software, and cost-efficient, flexible manufacturing and platform upgrade of combat vehicles and naval gun and launcher systems.

Allied Research Corporation is a defense and commercial electronic security firm. Its operating units develop and produce ammunition, in addition they design, produce and market sophisticated electronic security and access control systems.

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 include, but are not limited to, those discussed in filings by the Company with the Securities and Exchange Commission.