Allen-Vanguard provides update following completion of integration plan and financing

OTTAWA, Oct. 6 /CNW Telbec/ - Allen-Vanguard Corporation (the "Company"
or "Allen-Vanguard") (TSX: VRS) of Ottawa, Canada today provided an update on
operations following the recent completion of its integration plan and
$12 million financing.
In the fourth quarter of its 2005 financial year ended September 30, the
Company received orders valued at $13.6 million. Contracts of note included
initial ECM orders for a major Asian country and a large Non-Governmental
Organization where the Company's advanced ECM technology has been selected as
the solution of choice following evaluation of other competing technologies.
In addition, contracts where signed for both our Vanguard(TM) MK2 and
Defender(TM) robotics platforms in Asia, Eastern Europe and the Middle East,
while orders of note where placed for our Explosive Ordnance Disposal or "EOD"
tools by countries in Asia and Western Europe. Alongside this, significant
points of progress where made in CBRN training and equipment sales in
Australasia. Underpinning all of this was the ongoing core business of sales
of the Company's wide range of counter terrorist solutions in all regions of
the world.
Roy Peers-Smith stated: "The fourth quarter is usually the slowest time
of the year for our industry due to the summer holidays. A large proportion of
the orders received in the quarter came from international sales. When the
order intake is viewed in the context of our lower operating costs and
increasingly effective sales efforts across the Company's entire range of
products it points to a brighter future for our core business with the
prospect of some significant developments for our core technologies still on
the horizon."
As a result of the Company's integration plan and financing initiatives,
Allen-Vanguard's financial position has greatly improved and the Company has
significantly reduced its quarterly break-even point. At the time of its third
quarter release the company announced the impact of the final phase of its
integration plan. Roy Peers-Smith, President and CEO of Allen-Vanguard stated
"It is expected that these initiatives will achieve an overall projected
savings in annual operating expenses in excess of $5 million. Allen-Vanguard's
sales and marketing and R&D capabilities have not been materially affected by
this initiative, so the cost reductions should significantly improve our
bottom-line going forward."
The effect of this reduction in operating costs will be to reduce the
company's annualized break- even point to approximately $45 million. When
coupled with the impact of the recent financing, the Company has a much
improved balance sheet and a strong basis with which to move forward. Roy
Peers-Smith stated: "After coming through a taxing operating period when
management have had to make the tough decisions to finalize the Company's
integration issues, I am optimistic that we are now well placed to capitalize
on the core recurring business take advantage of the larger opportunities open
to some of our key technologies"

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. This includes a complete range
of remote intervention robots for hazardous applications, vehicle barrier
systems, suspect package containers and Electronic Counter-Measures (ECM)
equipment for jamming remote detonation of terrorist devices. The Company is a
world leader in the development, manufacturer and sale of specialty security
equipment for Explosive Ordnance Disposal (EOD), and is the sole, worldwide
licensee and/or developer of patented technologies such as the Universal
Containment System and CASCAD Foam for blast mitigation, decontamination of
bio-chemical warfare agents, and personal protective gear. Head office
operations are located in Ottawa, Ontario, Canada, with manufacturing
operations in Ottawa and 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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