OTTAWA, Jan. 18 /CNW Telbec/ - Allen-Vanguard Corporation (the "Company" or "Allen-Vanguard") (TSX: VRS) of Ottawa, Canada today announced additional details to its press release of December 29, 2005, confirming that it has signed a licensing and joint development agreement with a unit of Lockheed Martin Corporation (NYSE: "LMT") to manufacture and market the Company's current line of Electronic Counter Measures (ECM) technologies, as a component of Lockheed Martin's various electronics programs. The agreement also outlines the opportunity to jointly develop future generations of ECM technology. Under the terms of this seven-year agreement the Company granted Lockheed Martin Maritime Systems & Sensors the exclusive right to sell ECM units incorporating the Company's components to customers located in the United States and a non-exclusive license to sell to customers located outside the United States. The agreement gives Lockheed Martin the rights to manufacture, field and support the existing line of Allen-Vanguard ECM products. The agreement also provides the opportunity for both companies to enhance existing products and develop future generations of ECM technology. Detailed financial terms were not disclosed, but Allen-Vanguard Interim Chairman and CEO David Luxton confirmed that the deal includes an initial license fee, engineering fees for a period of three years, and the potential for additional royalties and component sales over the term of the agreement. "This agreement holds the potential for significant orders for our ECM components," Mr. Luxton added. "Known ECM programs in the U.S. alone total hundreds of millions of dollars, they address a critical operational need, and we believe that a company with the market strength of Lockheed Martin offers the best prospect for capturing some portion of this business." "Allen-Vanguard is very pleased to be associated with a company that has the market strength of Lockheed Martin, which brings a wealth of experience in developing, fielding and supporting highly technical and innovative equipment solutions for numerous countries and defense organizations," Mr. Luxton said. "Allen-Vanguard's technical expertise in the ECM field, combined with the marketing, manufacturing and engineering abilities of Lockheed Martin will ensure that Lockheed Martin and Allen-Vanguard are on the leading edge of Electronic Counter Measures development for the future." About Lockheed Martin Headquartered in Bethesda, Maryland, Lockheed Martin employs approximately 135,000 people worldwide and is principally engaged in the research, design, development, manufacture and integration of advanced technology systems, products and services. 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