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          Allied Research: Reports 1999 and 4th Qtr Results


                    ALLIED RESEARCH CORPORATION
                    8000 TOWERS CRESCENT DRIVE, STE 260
                    VIENNA, VIRGINIA 22182
                    CONTACT: SUSAN URBANIAK (800) 847-5322
                    HOME PAGE: ALLIED RESEARCH-ALR.COM
                    TICKER: AMERICAN STOCK EXCH. - ALR




          IMMEDIATE RELEASE



ALLIED RESEARCH CORPORATION REPORTS $0.69 A SHARE PROFIT FOR THREE MONTHS
AND $0.68 A SHARE LOSS FOR 12 MONTHS 1999 FROM CONTINUING OPERATIONS; SEES
STRONG 2000


VIENNA, Virginia, February 15, 2000 - Allied Research Corporation (ALR:
AMEX), a diversified defense and commercial electronic security firm,
reported today that for the three months ended December 31, 1999, it earned
$3.3 million from continuing operations, or $0.69 a share, fully diluted,
on revenues of $20.6 million.  This compares to a profit of $2.3 million,
or $0.48 a share, fully diluted, on revenues of $41.8 million for the same
period in 1998.  During the quarter, an agreement to sell Barnes &
Reinecke, Inc., its defense engineering services subsidiary, was announced.
This sale is expected to close in about a month and generate a gain.  The
fourth quarter results were favorably impacted by a $1.87 million tax
benefit attributable to MECAR's 1999 losses.  The benefit was recognized as
a result of  MECAR's recent contract awards and current backlog.  The
consolidated backlog at December 31, 1999 was $105 million.

For the 12 months ended December 31, 1999, Allied Research lost $3.3
million from continuing operations, or $0.68 a share, fully diluted, on
revenues of $59.0 million, compared to a profit of $8.6 million, or $1.81 a
share, fully diluted, on revenues of $133.1 million for the same period in
1998.  In 1999, a loss from discontinued operations of $0.16 per share,
associated with Barnes & Reinecke's operations was also reported.

According to Mr. Glenn Yarborough, Chief Executive Officer of Allied
Research "The fourth quarter profit figures clearly show that we have made
a dramatic turnaround.  We are well on our way to a solid and profitable
2000.  Lots of things have made this change possible.  First, both key
operating groups, MECAR and VSK, did their part in opening new markets,
getting more business in the door, and delivering profits.  In MECAR's
case, the stronger oil prices helped loosen up orders from our major
defense customers.  In VSK's case, some really great new products were
introduced into new and old markets and the results exceeded our
expectations.

"All of this shows up in our backlog of orders for both defense and
commercial products and systems.  It now tops $105 million, and that gives
us the power to be able to look through all of 2000 with a very positive
view.

"Also, for the first time, we have contracts that show excellent long term
potential.  One of the contracts just announced has a first-year value of
some $30 million.  But, our customer has indicated a need for over $200
million of this ammunition over a ten-year period, following successful
qualification of the ammunition and its accompanying weapon system.  That
is the kind of stability we have been working so hard to get in our defense
business.  Just as importantly, it validates our decision to enter into
strategic partnerships with key players in the defense business," Mr.
Yarborough said.

Mr. Yarborough added that the company's plan to sell its Barnes & Reinecke
defense unit to UDLP is moving ahead as scheduled.  "We expect that
everything will be wrapped up by early March.  BRI has been very good for
us and we have strong regrets about parting with this fine team of
engineers.  But, right now the professional strengths of BRI just don't
match-up with our long-range strategic plan.  I am sure BRI will do very
well under the leadership of our close friends at UDLP.

"We are moving along in the work we have of repositioning Allied Research
from a pure defense firm to a diversified defense and commercial electronic
security firm.  The progress has been tremendous and we have our eye on an
even better balance as the year progresses," Mr. Yarborough concluded.

Certain statements contained herein are "Forward Looking" statements as
such term is defined in the Private Securities Litigation Reform Act of
1995.  Because such statements include risks and uncertainties, actual
results may differ materially from those expressed or implied.  Factors
that could cause actual results to differ materially from those expressed
or implied include, but are not limited to, those discussed in filings by
the Company with the Securities and Exchange Commission.

Allied Research Corporation is a defense and commercial electronic security
firm.  Its operating units develop and produce ammunition and weapon
systems, supply equipment performance upgrades for defense departments
worldwide; and design, produce and market sophisticated commercial
electronic security and access control systems.



ALLIED RESEARCH CORPORATION

Three months ended December 31,
(000's omitted except per share amount)

                                       1999                  1998     

Revenues                             $20,581               $41,813

Net  (loss) earnings from
-  continuing operations               3,261                 2,309

-  discontinued operations              (251)                  174

Fully diluted net (loss) earnings
  per share from
-  continuing operations                 .69                   .48

-  discontinued operations              (.06)                  .04


Year end December 31,
(000's omitted except per share amount)

                                       1999                  1998     


Revenues                             $59,033               $133,078

Net (loss) earnings from
-  continuing operations              (3,282)                 8,629

-  discontinued  operations             (746)                   437

Fully diluted net (loss) earnings
  per share from            
-  continuing operations                (.68)                  1.81

-  discontinued operations              (.16)                  0.09




End.