VIENNA, VA--- The Allied Defense Group Announces $2 Million Order from the U.S. Army

The Allied Defense Group, Inc. (AMEX:ADG) , announces that its Texas-based unit, Titan Dynamics Systems, Inc., has received an order for approximately $2 million from the U.S. Army.

The order calls for the delivery of over one million cartridges for use with Titan's Battlefield Effects Simulator (BES) launcher, the Omega 60. The BES system currently includes two cartridges approved for use by the Army, both of which are type classified and material released: the M34 hostile fire cartridge simulating the flash and bang of a threat weapon and the M35 target hit white star cartridge which simulates the successful engagement of the target. The cartridges are fired from the Omega 60 launcher now being installed on Army live fire training ranges. The Army has procured over 1,300 BES launchers to date and has completed the fielding and site acceptance of the BES systems at five Army installations thus far in 2007.

The BES system enhances the Army live fire training environment by providing safe, reliable, and realistic pyrotechnic effects to replicate battlefield conditions. The Army procures the BES systems under the contract competitively awarded in April 2005 by the Program Executive Officer for Simulations, Training, and Instrumentation (PEO STRI). The Government has placed delivery orders totaling over $10.6 million for BES systems.

Major General (Ret) John J. Marcello, The Allied Defense Group's Chief Executive Officer and President, said, "In April, we announced the first fielding of BES systems with the U.S. Army under this contract and are pleased to see this first order for cartridges to be used with the systems."

About The Allied Defense Group, Inc.

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: www.allieddefensegroup.com