Allied Research Corporation Reports $9.2 Million New Contract for Medium-Caliber Ammunition.

VIENNA, Va.--(BUSINESS WIRE)--Nov. 16, 1999--

Allied Research Corporation (AMEX: ALR), a diversified defense and commercial security firm, said today that its backlog had increased to an estimated $95 million following the award of a $9.2 million munitions contract to its Belgian subsidiary, MECAR.SA. The order calls for production of a variety of medium-caliber ammunition for a long-time customer.

According to Glenn Yarborough, President & Chief Executive Officer of Allied Research, "this order plus the ones received earlier this summer, along with orders we expect to receive before the end of the year will make 2000 great for ARC."

Mr. Yarborough said he was confident that the revenue base would continue to grow and that VSK, the commercial high-tech electronic security firm will show excellent results. His optimism runs extremely high for 2000 and beyond.

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 untis 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.