Initial $8 million order plus $22 million option follows successful U.S.
evaluations
OTTAWA, Sept. 29 /CNW Telbec/ - Allen-Vanguard Corporation (the "Company"
or "Allen-Vanguard") (TSX: VRS) of Ottawa, Canada announced today that
Lockheed Martin Corporation has placed the first production order for the
Company's advanced digital ECM components which are used to counter the threat
of remotely detonated explosive threats. The contract is worth up to
$30 million, consisting of an initial order of approximately $8 million for
urgent delivery and a follow-on option for approximately $22 million (all
amounts in Canadian dollars). First deliveries are scheduled on a priority
basis commencing in the first quarter of the company's 2007 fiscal year.
"This marks an important first inroad for Allen-Vanguard into the
multi-billion dollar ECM market in the U.S. where various major new programs
are underway," said David E. Luxton, President and CEO. "It follows extensive
and successful trials that further validate our ECM technology as among the
best in the world, and it is gratifying to now see the first quantity orders
from the U.S. begin to flow as we had earlier stated could happen by this
time."
The ECM components are for vehicle mounted systems and will be supplied
from Allen-Vanguard's production facility in Tewkesbury, U.K., which was
recently upgraded into a scaleable, dedicated operation that can support
substantially higher annual ECM sales. "This first contract from Lockheed
Martin could exceed our total ECM revenue for all of fiscal 2006, which ends
September 30th 2006," added Mr. Luxton. "We are off to a strong start to
fiscal 2007, with excellent prospects for follow on orders in the U.S. and
buoyant sales development in overseas markets."
Allen-Vanguard continues to develop and leverage its core ECM technology
into an expanded system of integrated products that take ECM to a new level in
concept and capability. The Company's leading ECM products today consist of
vehicle mounted systems for mobile operations, plus hand-carried units for
bomb disposal specialists.
The Company noted that the ECM market has become very dynamic as security
forces everywhere upgrade in the coming years with essential "electronic
armour" against the persistent, lethal and ever-evolving threat of remotely
detonated explosive devices. The base of suppliers that can share this market
today with credible solutions is very limited. "While the number of qualified
suppliers may be small, we expect the ECM market to be competitive and we plan
to protect and maintain our technology lead to gain our share of the many
lucrative opportunities," concluded Mr. 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. 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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