Allied Research Corporation Reports Re-election of Directors.

VIENNA, Va.--(BUSINESS WIRE)--June 11, 1999--

Allied Research Corporation (AMEX:ALR), a diversified defense and commercial electronics security firm, said today that the stockholders of Allied voted at the Annual Shareholders Meeting on Wednesday, June 9, 1999 to re-elect the Board of Directors.

Dr. J. R. Sculley, Chairman & Chief Executive Officer of Allied, said he was gratified by the support received by the Allied Research Board, but indicated that he understood the concerns of the shareholders of the low stock prices and that management is actively working to increase shareholder value.

At the Annual Meeting, Dr. Sculley reviewed the key elements of Allied's corporate strategic plan, which calls for maintaining a strong base of defense operations, and using the defense base to increase diversification into commercial fields. "Each of these elements in our strategic plan is working well. Our defense operations received a huge lift with the award this week of a $42.5 million contract from the U.S. Army; and The VSK Group, our commercial electronic security firm also produced a new contract for $1 million for a five-star hotel.

Dr. Sculley indicated that, while the second and third quarters would be difficult, he was optimistic about the long-term future of the company.

Allied Research Corporation is a defense and commercial electronic security firm. Its operating units develop and produce ammunition, supply equipment performance upgrades for defense departments worldwide, and 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 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.