Vanguard robot production outsourced OTTAWA, Jan. 30 /CNW Telbec/ - Allen-Vanguard Corporation (the "Company" or "Allen-Vanguard") (TSX:VRS) of Ottawa, Canada today announced an additional order worth $3.1 million for its Electronic Counter Measures (ECM) equipment. All amounts are in Canadian dollars. The $3.1 million ECM order being announced today represents a continuation of the brisk pace of sales of this core product line, and was from the same overseas customer who placed a similar-sized order ten days ago, as announced on January 20th. ECM orders for the past 90 days now total more than $15 million, with most of this received in the past 30 days. This compares to sales of $2 million for ECM products for all of fiscal 2005. Allen-Vanguard also announced that it was outsourcing the production of the Vanguard MkII robot. "Effective immediately, we will outsource manufacturing of the Vanguard MkII robot to an Ottawa contractor," said David Luxton, interim Chairman and CEO. "This will have the impact of reducing the overheads in our Ottawa operations, as well as lowering the production costs for the MkII robot. We are also pleased that the work will remain in Ottawa." The Company said it expects to see implementation of today's outsourcing decision as well as planned reductions to corporate overhead completed before the end of March, 2006. Anticipated annual savings are in the range of $2.5 million. All associated restructuring charges have already been accounted for as at September 30, 2005. As part of the ongoing strategic review process announced recently, the Company also decided that it would seek a buyer for its product line of vehicle bomb barriers. "Although the sales performance of these products has recently been good the target growth profile and customer base for these products do not fit with the rest of our product lines," said David Luxton. 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. 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 (TSX: VRS), visit our website at www.allen-vanguard.com. %SEDAR: 00018026E