Allen-Vanguard Corporation announces closing of $50,000,000 bought deal financing



    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/

    OTTAWA, March 9 /CNW Telbec/ - Allen-Vanguard (TSX:VRS) is pleased to
announce today that it has closed its previously announced bought deal
offering for gross proceeds of $50,000,000. The net proceeds from the offering
will be used in furtherance of corporate development plans announced
February 14, 2007, including acquisitions, and for working capital and general
corporate purposes. The underwriters, Versant Partners Inc. and Paradigm
Capital Inc., purchased 10,000,000 common shares from the Company at an issue
price of $5.00 per share. In addition, the Company has granted the
underwriters an option to purchase up to an additional 1,500,000 common shares
(up to 15% of the offering) at the issue price of C$5.00 per share, for
over-allotment and market stabilization purposes, which option shall be
exercisable for 30 days following the closing of the offering.
    The securities offered have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities Act")
or any state securities laws. Accordingly, subject to certain exceptions,
these securities may not be offered, sold or delivered, and the short form
prospectus and/or this press release do not constitute an offer to sell or a
solicitation of an offer to buy any of the aforementioned securities within
the United States or to or for the benefit of, U.S. persons (as defined in the
U.S. Securities Act).

    About Allen-Vanguard

    Allen-Vanguard Corporation and its subsidiaries worldwide operate under
the brand "Allen-Vanguard". Allen-Vanguard 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"). Allen-Vanguard'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.
Allen-Vanguard's shares are listed on The Toronto Stock Exchange (TSX: VRS).

    This press release contains forward-looking statements, which reflect
Allen-Vanguard's current expectations regarding future events. 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. Allen-Vanguard disclaims any
obligation to publicly update or revise any such statements.

    To find out more about Allen-Vanguard Corporation (TSX:VRS), visit our
    website at www.allen-vanguard.com.
    %SEDAR: 00018026E




For further information:

For further information: contact: Elisabeth S. Preston, General Counsel
and Corporate Secretary, (613) 614-4884, ir@allen-vanguard.com

Organization Profile

ALLEN-VANGUARD CORPORATION

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