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EXCHANGE ACT OF 1934 (AMENDMENT NO. )
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Allied Research Corporation
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(Name of Registrant as Specified in Its Charter)
Zilkha Capital Partners, L.P., Lt. General William M. Keys, USMC (Ret.), John P.
Rigas, Jean-Claude Roch, John R. Torell III, Donald E. Zilkha
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NEWS RELEASE MacKenzie
Partners, Inc.
CONTACTS: 156 Fifth Avenue, New York, NY 10010
John Pigas Tel: 212-929-5500 Fax: 212-929-0308
Zilkha Capital Partners, L.P. E-mail: [email protected]
(212) 935-9797
or 1888 Century Park East, Los Angeles, CA 90067
Stanley J. Kay Tel: 310-284-3110 Fax: 310-284-3140
MacKenzie Partners, Inc.
(212) 929-5940
FOR IMMEDIATE RELEASE
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ZILKHA CAPITAL BELIEVES SHAREHOLDERS WILL CONTINUE TO SUPPORT NEW NOMINESS
DESPITE ISS RECOMMENDATION
NEW YORK, NEW YORK, June 7, 1999--Zilkha Capital Partners, L.P. announced today
that though it did not receive a recommendation for its slate of directors from
proxy advisory firm Institutional Shareholder Services, it was pleased that ISS
acknowledged the soundness of its ideas for improving performance at Allied
Research Corporation (AMEX: ALR), and is convinced that it will receive strong
support from shareholders.
John P. Rigas, co-managing partner of Zilkha Capital, commented, "Obviously, we
would have liked to have had the full support of ISS. However, it is clear from
the report that ISS recognizes our ideas and the message that Allied Research
is undervalued and in need of change. I specifically point to the section in
the ISS report which states:
'ZCP, however, is not without sound ideas, and we point with
particular interest to more rigorous financial management, such as
arranging better credit terms and redeploying tied-up cash. The Zilkas,
after all have built their reputations in international banking, and
ZCP also has a track record of success having jumpstarted Colt and,
with Saco, regenerated a small arms powerhouse.'"
"We take exception with ISS," Mr. Rigas continues, "in its belief that the
Company's performance - as reflected by a 1-year return of negative 43% and a
5-year return of 6.1%, during one of the biggest bull markets ever - does not
make it an underperformer."
Mr. Rigas concludes, "We are certain that many shareholders both large and
small will continue to agree with us that Allied Research is a troubled Company
and that the current Board and management, based on the Company's operating and
stock price performance, are not qualified to lead a turnaround to enhance
value for the benefit of all shareholders."
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