The Wynnefield Group, a long-term stockholder in the Allied Defense Group, Inc. (AMEX: ADG), today announced that, with other institutional shareholders, it had successfully stopped ADG's (?the Company?) unfair proposed dissolution plan.

On August 23, 2010 representatives of the Wynnefield Group contacted several members of ADG's Board of Directors and expressed their objection to ADG's proposed Plan of Dissolution – Proposal 2 to ADG's Proxy Statement on Schedule 14A dated July 27, 2010 (the ?Proxy Statement?) in connection with the Special Meeting of Stockholders scheduled to be held on August 31, 2010 (the ?Stockholders Meeting?).

Wynnefield encouraged other institutional holders to review the Plan of Dissolution and pointed out the inequitable nature of the proposal.

Among other things, Wynnefield objected to: (i) ADG's intention to file a certificate of dissolution immediately following consummation of the proposed sale of all of ADG's assets to Chemring Group, PLC (if approved by stockholders at the Stockholders Meeting); (ii) closing ADG's stock transfer books upon filing of the certificate of dissolution, thereby preventing any further market transactions in ADG's Common Stock; and (iii) ADG's intention to terminate its reporting obligations under the Securities Exchange Act of 1934, as amended (the ?34 Act?).

After seeking the views of several other of ADG's institutional stockholders, the Wynnefield Group advised the Issuer of its intention to vote against the Plan of Dissolution, and that it would encourage other stockholders to do the same, unless the Issuer addressed the stockholders' concerns.

As a result of further discussions between the Wynnefield Group and ADG, the Company agreed to adjourn the stockholder vote on Proposal 2 – the Plan of Dissolution – for approximately 30 days to on or about September 30, 2010; refrain from filing a certificate of dissolution (in the event Proposal 2 is approved by stockholders) until at least August 31, 2011; and also to continue to file all periodic reports with the Securities and Exchange Commission required under the Securities Exchange Act of 1934 (e.g. 10-Q's, 10-K's, 8-K's and 14-A's) during this one-year period.

On August 25, 2010, ADG filed a supplement to the Proxy Statement reflecting these commitments.

THE WYNNEFIELD GROUP APPRECIATES THE SUPPORT IT HAS RECEIVED FROM THE COMPANY'S OTHER INSTITUTIONAL STOCKHOLDERS FOR ITS EFFORTS TO PROTECT THE INTERESTS OF ALL STOCKHOLDERS.

ABOUT THE WYNNEFIELD GROUP

Established in 1992, the Wynnefield Group includes several affiliates of Wynnefield Capital, Inc., a value investor specializing in U.S. small cap situations that have company- or industry-specific catalysts.

Kekst and Company
Eric Berman 212-521-4894