VIENNA, Va., March 6, 2002 (PRIMEZONE) -- Allied Research Corporation (AMEX:ALR) announces its Belgian defense unit, MECAR, S.A., has received a $130 million ammunition contract through the U.S. Army Operations Support Command (OSC) for the benefit of one of MECAR's principal customers. The Foreign Military Sales (FMS) contract calls for the delivery of MECAR's new family of 90mm ammunition over a three-year period.
General (Ret) J.H. Binford Peay, III, Allied Research's Chairman and Chief Executive Officer, said, "This contract is the single largest contract in MECAR's history. It represents a substantial portion of MECAR's backlog and should help assure profitability and growth for the next three years. The extended delivery period for this contract will allow easier production planning and improved operations efficiency."
"The contract is the direct result of over ten years of developmental effort and the successful evaluation and acceptance of the ammunition after being subjected to very rigorous U.S. Army test standards. We expect that successful field performance by the MECAR rounds should lead to additional orders from this and other markets," General Peay concluded.
This marks MECAR's second order for 90mm rounds in 2002, reflecting the exceptional marketing success MECAR is having with this product. This recent contract continues to validate MECAR's decision to take action in the early 1990s to modernize and develop new families of 90mm ammunition.
About Allied Research Corp.
Allied Research Corporation is a diversified defense and security firm, developing and producing conventional ammunition marketed to defense departments worldwide; and designing, producing and marketing sophisticated electronic security systems for European, Asian, African, North American and South American markets.
For more Information, please visit the Company Web site: www.alliedresearch.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.