Initial $8 million order plus $22 million option follows successful U.S.

evaluations

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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SOURCE: ALLEN-VANGUARD CORPORATION

David Luxton, (613) 769-5353; Elisabeth Preston, (613) 614-4884