September 16, 2003

News Release: The Allied Defense Group Announces New Orders For $10.5 Million from Two Customers

The Allied Defense Group, Inc. (Amex: ADG - News) announces its Belgian defense unit, MECAR S.A., received contracts totaling $10.5 million from two customers, in the Middle and Far East.
The orders call for the delivery of MECAR's complete family of 76mm ammunition, as well as a variety of other ammunition, including MECAR's 120mm high pressure mortar ammunition. As of September 9, 2003, The Allied Defense Group's backlog was $125.0 million. Major General (Ret.) John G. Meyer Jr., The Allied Defense Group's Chief Executive Officer, said, "MECAR has undertaken a very important diversification effort in the last couple of years, which continues to be prolific in 2003. In addition to meeting the ammunition needs of its traditional customers, MECAR has conquered new markets, which make up a majority of its new orders for 2003. Of the aggregate amount of MECAR orders received thus far, 83% have been from new or non-traditional customers."

Major General Meyer continued, "We are proud of MECAR's hard work and its contribution to the success of The Allied Defense Group. The firm's performance for the first half of 2003 was outstanding. Based on internal forecasts, we anticipate MECAR's performance in the second half of 2003 to add to an overall good year for the Company."

For the six months ended June 30, 2003, Allied earned $6.2 million, or $1.08 a share, fully diluted, on revenues of $85.4 million, compared with earnings of $3.3 million, or $0.63 a share, fully diluted, on revenues of $44.3 million for the same period in 2002.

About The Allied Defense Group, Inc. (formerly Allied Research
Corporation)
The Allied Defense Group, Inc. is a diversified international defense and

security firm which: develops and produces conventional ammunition marketed to
defense departments worldwide; designs, produces and markets sophisticated
electronic and microwave security systems principally for European and North
American markets; manufactures battlefield effects simulators and other
training devices for the military; and designs and produces state-of-the-art
weather and navigation software, data, and systems for commercial and military
customers.
For more Information, please visit the Company web site: www.allieddefensegroup.com

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

CONTACT: Crystal L. Bedwell, Manager, Investor Relations, +1-800-847-5322, or Jim Drewitz, Investor Relations, +1-972-355-6070, both of Allied Defense Group, Inc.

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Source: Allied Defense Group, Inc.

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