Allied Research announces contract to evaluate new method to safely dispose of obsolete munitions and chemical weapons.

VIENNA, Va.--(BUSINESS WIRE)--Nov. 17, 1994--Allied Research Corp. (AMEX:ALR) said today it had received a contract from Concurrent Technologies Corp. to evaluate Allied Research's Adams process for its ability to safely dispose of obsolete munitions and chemical weapons.

The first phases of the contract are valued at $151,000, and are expected to lead to follow-on phases to include the design, construction and startup of a pilot/demonstration plant.

According to Dr. J.R. Sculley, chairman and chief executive officer of Allied Research, the contract is the first step in validating Allied's decision to invest in the fast-growing environmental services market.

"We are very pleased to have been named by Concurrent Technologies to explore the feasibility of utilizing this new process technology for the safe disposal of munitions, chemical weapons and dangerous industrial contaminants," Dr. Sculley said.

"In 1992, we saw an emerging environmental market that would help defense, government and commercial customers safely eliminate huge stockpiles of environmentally unsafe materials. From all of our development work to date, the Adams process reaches all objectives safely and economically," he added.

Dr. Sculley remarked that, while the initial contract is modest and that significant environmental business revenues would take time to develop, he regarded the project as a correct step in Allied Research's expressed intention to diversify from its historic defense business into complementary business areas with growth and profit potential.

The new process is a sulphur-based, closed-loop system that achieves total decomposition at moderate temperatures of only about 450 degrees centigrade. It allows demilitarization to be done without producing any environmentally undesirable byproducts, and is attractive, not only for disposing of so-called energetics and chemical agents, but also toxic and hazardous organic compounds that exist on military facilities, as well as in the commercial marketplace.

Charles R. Henry, president of ARC Services, an Allied Research subsidiary said, "There are hundreds of locations, not only in the United States, but throughout the world, where safe disposal of obsolete weapons is a serious problem. The normal method of burning obsolete explosives is not satisfactory. Communities do not want potentially dangerous waste trucked through their cities. With the Adams process, it's a completely safe operation. It's clean and doesn't harm the environment. There's no need to transport contaminants and there is virtually no residue.

"We expect the testing and evaluation phases to be completed successfully, and that this process will be seen for what we believe it to be: a safe, harmless method of disposing of multiple types of defense and industrial contaminants," Henry said.

Henry has guided the Allied Research subsidiary since its startup in 1992. A retired U.S. Army Major General, Henry has initiated strategic, marketing and financial support alliances with several established, as well as fledgling, environmental firms.

"By combining Allied's environmental, technical background and financial resources, we have been able to forge several strategic and marketing alliances with environmental firms. Our strength is acting as the contact point and contract facilitator.

"We have every belief that the trials of the Adams process will be successful and that we will move on to additional phases leading to a complete start up plant.

"This process is unique in its technical excellence and its ability to accomplish safely, cleanly and at very modest cost the objectives of the Defense Department," Henry said.

He also pointed out that Allied Research would continue to build its string of strategic alliances and would continue to invest modestly in several promising developments to bring them successfully to the environmental market. Allied Research presently provides funding and strategic and market planning to several firms. In addition, Allied Reseach intends to employ the same technology in other fields, including soil remediation.

Concurrent Technologies is a not-for-profit firm, operating the National Defense Center for Environmental Excellence (NDCEE) for the Department of Defense. The mission of NDCEE is to serve as a national leadership organization to address high priority environmental problems for the Department of Defense, other government organizations and the industrial community.

In addition to its environmental services work, Allied Research Corp. is a leading developer and producer of ammunition systems; supplies engineering services to defense departments worldwide; designs, produces and markets

security systems in Europe.

CONTACT: Richard Farrell Associates Inc.

Richard Farrell, 800/743-2724