Allen-Vanguard Announces Technology Licensing and Supply Agreement for Electronic Counter Measures with Lockheed Martin Unit

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 .
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