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           Allied Research: Reports $33 Million Contract


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



            FOR IMMEDIATE RELEASE


ALLIED RESEARCH REPORTS $33 MILLION AMMUNITION CONTRACT: SAYS 
TURNAROUND AHEAD OF SCHEDULE: BACKLOG IS AT RECORD LEVELS

VIENNA, Virginia, March 7, 2000 - Allied Research Corporation (AMEX: ALR), a
diversified defense and commercial security firm, said today it has received a
$33 million contract from a long-time customer.  The contract calls for a range
of medium caliber, assault gun ammunition and other defense items to be
delivered by MECAR S.A., Allied Research's Belgian subsidiary.

Scheduled for delivery over the next 12-month period, the contract lifts Allied
Research's backlog above $135 million.

"We have been working hard to turn around Allied Research for the benefit of
our shareholders.  The numbers we put up for the last quarter of 1999 gave us
good reason to say that we are on the right track.   In fact, the results were
well ahead of plan.  Now, this contract puts us even further ahead in terms of
solid backlog that should translate into much increased profits in the months
ahead," Mr. Yarborough concluded.

"We are very proud of the highly-skilled people at MECAR.  Their tremendous
effort has dramatically increased backlog, resulting in profitable operations
that have lead to increased shareholder value," said Mr. Glenn Yarborough,
Allied Research's Chief Executive Officer.  "The basis for our winning this
large production order is the MECAR know-how that designed and produced
advanced conventional ammunition that perfectly tracks the complex needs of
today's highly-sophisticated light armored vehicles.  We look at everything:
combat vehicles, turrets, assault guns and then build the ammunition that will
do the job our customers deserve and want. 

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 electronic security and access control
systems.





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