Allied Research Corporation Chairman Predicts Another Strong Year; Outlines Acquisition Strategy


VIENNA, Va., June 8, 2001 (PRIMEZONE) -- Allied Research Corporation (AMEX:ALR), a diversified defense and commercial electronic security firm, said today that it expected a strong 2001, with earnings ahead of year 2000.

Speaking at Allied Research's annual meeting held on June 6, 2001 in Vienna, Va., Chairman and Chief Executive Officer, General (Ret) J.H. Binford Peay, III, said that, from all indications, both defense and commercial operating units will report strong revenues and earnings throughout the balance of 2001, principally in the second half. At the same time, General Peay outlined Allied's growth strategy for the immediate future, which concentrates on a portfolio of strategic security businesses.

"I appreciate the team effort that is going into delivering our current strong performance. I see this performance as a solid base on which we will build our strategy of increasing the mass of Allied Research, with minimum dilution, in order to better compete and position Allied for future opportunities."

"We have a focused acquisition program, many good candidates and a very active effort to select those with the greatest potential and best fit. The overall goal is to develop mass and an earnings stream that will reward our shareholders."

General Peay did not identify specific acquisitions because of on-going due diligence, but said that the process has been moving ahead in a swift, and prudent manner.

The current Allied Research Board of Directors, composed of General (Ret) Peay, Dr. J.R. Sculley, Clifford C. Christ, Harry H. Warner and General (Ret) Ronald H. Griffith, was re-elected. Grant Thornton LLP was re-elected as Independent Auditors, and a proposal to approve the Company's 2001 Equity Incentive Plan was approved.

It was announced that the Allied Research Board approved the adoption of a shareholder rights program, to take effect on June 20, 2001, replacing a similar rights plan.

Allied Research Corporation is a diversified defense and commercial electronic security firm, developing and producing conventional ammunition systems marketed to defense departments worldwide, and designing, producing and marketing sophisticated electronic security systems for European, Asian and African markets.

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.


            

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