Allied Research Reports $33 Million Ammunition Contract: Says Turnaround Ahead of Schedule: Backlog is At Record Levels.

Business Editors

VIENNA, Va.--(BUSINESS WIRE)--March 7, 2000

Allied Research Corporation (AMEX:ALR), a diversified defense and commercial security firm, said today it has received a $33 million contract from a long-time customer. The contract calls for a range of medium caliber, assault gun ammunition and other defense items to be delivered by MECAR S.A., Allied Research's Belgian subsidiary.

Scheduled for delivery over the next 12-month period, the contract lifts Allied Research's backlog above $135 million.

"We have been working hard to turn around Allied Research for the benefit of our shareholders. The numbers we put up for the last quarter of 1999 gave us good reason to say that we are on the right track. In fact, the results were well ahead of plan. Now, this contract puts us even further ahead in terms of solid backlog that should translate into much increased profits in the months ahead," Mr. Yarborough concluded.

"We are very proud of the highly-skilled people at MECAR. Their tremendous effort has dramatically increased backlog, resulting in profitable operations that have lead to increased shareholder value," said Mr. Glenn Yarborough, Allied Research's Chief Executive Officer. "The basis for our winning this large production order is the MECAR know-how that designed and produced advanced conventional ammunition that perfectly tracks the complex needs of today's highly-sophisticated light armored vehicles. We look at everything: combat vehicles, turrets, assault guns and then build the ammunition that will do the job our customers deserve and want.

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 electronic security and access control systems.