VIENNA, Va., Jan. 7 /PRNewswire-FirstCall/ — The Allied Defense Group, Inc. (Amex: ADG), announces that its two ammunition companies, MECAR S.A. and MECAR USA, have entered into a teaming agreement with Alliant Techsystems (ATK), a $4 billion advanced weapon and space systems company, to pursue opportunities in the conventional direct fire ammunition market. The team will focus specifically on introducing incremental improvements to the U.S. Army’s current ammunition suite.

In the very near future, the team is looking forward to introducing ammunition with improved Insensitive Munitions (IM) performance. The focus is on updating the current ammunition’s propulsion systems that were qualified in the 1980’s or earlier. By leveraging technology developed and demonstrated in the U.S. and Europe on similar ammunition types, the team will be able to minimize the cost to introduce these improvements. The technology being introduced has the added benefits of reducing gun barrel wear and reducing overall stress to the platform, while providing higher energy for added range, accuracy and lethality. By reducing maintenance cost to the platform and utilizing proven low cost production techniques, the overall cost of the ammunition is comparable to that of the current ammunition. In the not too distant future, the team is looking forward to taking this approach further and introducing IM improved explosives to replace that used in the current warheads of tactical ammunition.

The two organizations offer complimentary capabilities: ATK is a dominant force in the U.S. ammunition market and provides exemplary product management in addition to its technological prominence; ADG is a leader in medium to large caliber ammunition markets internationally with strong research and development expertise.

Major General (Ret) John J. Marcello, The Allied Defense Group’s Chief Executive Officer and President, said, “This relationship with ATK portends affordable advances in conventional ammunition that will provide benefits to our soldiers in the near future. ATK is an outstanding partner with demonstrated experience and knowledge. Our collaboration should open new channels and new markets for both companies. This alliance will help ADG offset our reliance on our traditional customers and contributes to our efforts to smooth out the cyclical nature of our ammunition business.”

About The Allied Defense Group, Inc.
The Allied Defense Group, Inc. is a diversified international defense and security firm which: develops and produces conventional medium caliber ammunition marketed to defense departments worldwide; designs, produces and markets sophisticated microwave security systems; and manufactures battlefield effects simulators and other training devices for the military. For more Information, please visit the Company web site:

About Alliant Techsystems Inc.
ATK is a leading provider of advanced weapon and space systems with $4.0 billion in annual sales, approximately 16,500 employees, and operations in 21 states. The company is the world’s leading supplier of solid rocket motors and the nation’s largest manufacturer of ammunition. For more information please visit the Company Website:

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