$10.7 MILLION IN AMMUNITION CONTRACTS

VIENNA, Virginia, October 27, 2009 - The Allied Defense Group, Inc. (AMEX:ADG) announced that its subsidiary, Mecar USA, has received ammunition contracts totaling $10.7 million. The largest contract is an ammunition services order to provide Non-Standard Ammunition for the security forces of Afghanistan. The first order of this contract is worth approximately $10.1 million, with the potential for subsequent orders over the next three years. Work on the first order will begin immediately and is scheduled to be completed by mid-2010.

"These contract wins expand on the significant growth that our Mecar USA sibsidiary has shown since its inception four years ago." said Major General (Ret) John J. Marcello, President and Chief Executive Officer of The Allied Defense Group. "They also build on the Allied Defense Group's long-standing history of supporting the US government's ammunition and ammunition-related service needs. Our exemplary reputation in the global ammunitions market, coupled with our unique positioning, allows us to be successful in competitive situations live this one."