The Allied Defense Group Holds Grand Opening For New Manufacturing Campus

ADG Opens Manufacturing Campus in Marshall, Texas for Titan Dynamics Systems and MECAR USA

VIENNA, Va., Oct. 11 /PRNewswire-FirstCall/ -- The Allied Defense Group, Inc. (AMEX: ADG) celebrated the grand opening of its new 110 acre manufacturing campus in Marshall, Texas with a ceremony and open house on October 10, 2005. Congressman Louie Gohmert (TX-01) and Rusty Howell, Chairman of the Marshall Economic Development Corporation (MEDCO), were in attendance to congratulate Company leadership and to participate in a ribbon cutting ceremony. In addition, the ceremony featured a welcome from City of Marshall Mayor, Ed Smith.

The manufacturing campus will be the home of Allied Technology, LLC, a wholly owned subsidiary of The Allied Defense Group, which in turn owns Titan Dynamics Systems, Inc. (Titan) and MECAR USA.

Titan is the premier U.S. based source for Battlefield Effects Simulators. Its simulators replicate the sights and sounds soldiers will experience in a battlefield environment. Titan was recently awarded the "Force on Target" Battlefield Effects Simulator (BES) systems contract for the U.S. Army, which could provide up to $10.99 million in orders for Titan over the next twelve months, with the potential maximum value of $500 million over its five to eight year life. Titan sits on 10 acres of the 110 acre campus and its operations are housed in a single 12,800 square foot state-of-the-art manufacturing facility.

MECAR USA is the newest Allied Defense subsidiary. It was created to better fulfill the requirements of the U.S. ammunition market. MECAR USA received its first contract in September 2005 to load, assemble, and pack 105mm HEP-T training ammunition for the U.S. Army's Stryker program. MECAR USA is located in four additional buildings on the site, three of which are currently operational. Construction of the fourth building is nearing completion.

Major General (Ret.) John J. Marcello, Chief Executive Officer and President of The Allied Defense Group said, "We are very pleased to open our ADG campus in Marshall, Texas. In addition to the manufacturing jobs we will bring to Marshall, we will bring new technologies for the United States military industrial base. These contributions would not have been possible without the support of MEDCO and to them we offer our deepest appreciation."

About Titan Dynamics Systems

Titan is the premier U.S. based source for Battlefield Effects Simulators, which are used to safely prepare soldiers for battlefield conditions. The simulators fire pyrotechnic cartridges that replicate the flash, smoke and sound of fired or exploding shells. Titan differentiates itself from its competitors by its new product development, innovative designs, unmatched safety record and competitive cost. For more information, please visit:


MECAR USA was created in 2003 to leverage the capabilities of its sister company MECAR S.A. in Belgium which has been making innovative, quality ammunition since 1938. MECAR USA's mission is to grow into a successful business through the use of modern production techniques and control systems to provide clients with high quality ammunitions and components in the shortest possible time. MECAR USA will utilize the resources of MECAR S.A. and benefit from its vast production and quality control expertise to become a trusted supplier for the U.S. Armed Forces and ammunitions industry partners. To learn more about MECAR USA, please visit:

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 medium caliber 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:

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.

     For More Information, Contact:
     Crystal B. Leiderman (Bedwell)
     Director, Investor Relations
     Jim Drewitz, Investor Relations

CONTACT: Crystal B. Leiderman (Bedwell), Director, Investor Relations,
+1-800-847-5322, or Jim Drewitz, Investor Relations, +1-972-355-6070, both
of Allied Defense Group, Inc.

Web site:

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