Allen-Vanguard finalizes stock-based compensation

OTTAWA, June 12 /CNW Telbec/ - Allen-Vanguard Corporation (the "Company" or "Allen-Vanguard") (TSX: VRS) of Ottawa, Canada, today confirmed the final calculated amount and payment of stock-based compensation to management due June 1st, 2007, under previously disclosed employment agreements with the CEO and CFO.

The total amount of the compensation, based on the average share price of the 40 trading days from April 4, 2007 - May 31, 2007, was $3.7 million. In the Company's second quarter ended March 31, the total amount was estimated at $3.6 million (based on only the 24 trading days from April 4, 2007 to the date of the MD&A for the period). The Company accrued an expense of $3.1 million as stock-based compensation for the second quarter, which was the pro-rated amount of the estimated bonus related to the service incurred up to March 31, 2007, or 15 out of 17 months. The remaining $0.6 million will be recorded as stock-based compensation expense in the Company's third quarter ended June 30, 2007.

Under the terms of the arrangement the board of directors of the Company had the discretion to pay out the bonus in cash or shares providing that no less than 50% of the payment was made in cash. A cash payment of $3.4 million has been made, and the Company intends to pay the balance of $300,000 in the form of restricted stock, subject to necessary approvals. Mr. Luxton, President and CEO, has chosen to forego $400,000 of his bonus, including $100,000 in cash and $300,000 in restricted stock. These amounts will instead be allocated among other senior managers, with the stock component representing a stock-based retention incentive for the next three years.

The compensation arrangement was approved by the Company's Governance and Compensation Committee as a past and future performance bonus when the Company's share price was near $1 and its market capitalization was less than $40 million. "Under the leadership of this management team, the Company has turned a corner, the shares now trade around $6, and the market capitalization exceeds $350 million. The management bonus has clearly been well earned and our shareholders well rewarded," said David O'Blenis, Chairman of the Board of Allen-Vanguard. "Furthermore, we are extremely pleased at the voluntary initiative of Mr. Luxton to personally forego more than 10% of his total performance bonus in favour of retaining and providing incentive to other key management, which will benefit all shareholders."

About Allen-Vanguard

Allen-Vanguard Corporation and its subsidiaries worldwide operate under the brand "Allen-Vanguard". The Company develops and markets technologies, tools and training for defeating and minimizing the effects of hazardous devices and materials, whether Chemical, Biological, Radiological, Nuclear or Explosive (CBRNE). The Company's equipment is in service with leading security and military forces in more than 120 countries. Products include Electronic Counter-Measures ("ECM") equipment for jamming remote detonation of terrorist devices, specialty security equipment for Explosive Ordnance Disposal ("EOD"), remote intervention robots for hazardous applications, vehicle barrier systems, and personal protective wear for use in dealing with bio-chemical agents. Allen-Vanguard is the sole, worldwide licensee and/or developer of patented technologies such as the Universal Containment System and CASCAD Foam for blast mitigation and decontamination of bio-chemical warfare agents. Head office operations are located in Ottawa, Ontario, Canada, with manufacturing operations in Stoney Creek, Ontario; Tewkesbury, U.K.; and Cork, Ireland, and sales offices in Canada, the U.S., the U.K. and Asia. The Company's shares are listed on The Toronto Stock Exchange (TSX: VRS). The web site is www.allen-vanguard.com.

This press release may contain forward-looking statements relating to, among other things, the Company's expectations concerning future product demand and growth opportunities and customer acceptance of Company's products. These forward-looking statements are neither promises nor guarantees, but involve risks and uncertainties that may cause actual results to differ materially from those in the forward-looking statements. The Company disclaims any obligation to publicly update or revise any such statements. The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release.

To find out more about Allen-Vanguard Corporation (TSX: VRS), visit our website at www.allen-vanguard.com.

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