Allied Research Corporation Belgian Unit Receives $3 Million Ammunition Contract for a New Customer
VIENNA, Virginia - June 23, 1999 - Allied Research Corporation (AMEX:ALR), a diversified defense and commercial electronic security firm, said today that its Belgian subsidiary, MECAR S.A., had received a $3 million contract for 90mm ammunition. The contract is with a new customer country, not otherwise identified. This contract is scheduled for delivery starting in 1999. This brings new awards to ARC for the month of June to $48 million and raises the backlog to $65 million.
According to Dr. J. R. Sculley, Chairman and Chief Executive Officer of Allied Research: "This contract represents another step in our strategy of building alliances and cooperating closely with defense agencies and major defense firms to develop ammunition that is exactly matched to particular requirements of gun and vehicle makers.
"This contract calls for 90mm rounds, all developed by MECAR S.A. to meet the needs of a newly-developed weapons system, the 90mm Mark VIII. The customer has recently purchased substantial numbers of such weapons systems. The ammunition to be purchased via this contract represents a very small portion of the ammunition needed to outfit the weapons systems and does not include war reserves. We are hopeful that follow-on contracts will be awarded to us by this customer."
Allied Research Corporation is a defense and 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.
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.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding The Allied Defense Group, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.
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