OTTAWA, Dec. 29 /CNW Telbec/ - Allen-Vanguard Corporation (the "Company" or "Allen-Vanguard") (TSX:VRS) of Ottawa, Canada today announced that it has signed a major licensing and joint development agreement with a leading U.S. defense contractor (the "Contractor") to manufacture and market certain Electronic Counter Measures (ECM) technologies developed by the Company. The agreement also outlines the opportunity to jointly develop future generations of such technologies with the Contractor. Under the terms of this seven year agreement the Company granted the Contractor the exclusive right to sell manufactured 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. "In the coming weeks we hope to be able to release more detailed information", said David Luxton, interim Chairman and CEO of Allen-Vanguard. "For the moment we are precluded for reasons of confidentiality but this deal is significant and material so we are releasing an interim statement at this time as a matter of necessary disclosure". 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