OTTAWA, Dec. 10 /CNW Telbec/ - Allen-Vanguard Corporation
("Allen-Vanguard" or the "Company") (TSX:VRS) commented today on the U.S.
Department of Defense (DoD) announcement of December 7, 2007 awarding CREW3
development contracts for electronic counter measures systems ("ECM" or
"jammers") to Northrop Grumman, ITT and Sierra Nevada Corp.
"We are still obtaining follow-on information from our two U.S. partners,
both of whom bid our technology into the CREW3 development program but were
not included in these CREW3 announcements," said David E. Luxton, President
and CEO of Allen-Vanguard. To the best of the Company's knowledge no further
award announcements are expected.
"We note that no major current incumbent in U.S. DoD jammer programs was
included in these CREW3 development awards," said Mr. Luxton. Through
divisions of Lockheed Martin and General Dynamics, Allen-Vanguard is the
incumbent in two major jammer programs in the U.S. The Company's jammers have
also been procured for Homeland Security applications in the U.S. "The
existing industry base of battle proven jammer technology like ours is very
limited, so it is understandable that DoD might invest to see if the
technology base can be expanded beyond current program incumbents," added
CREW3 is a development program through fiscal 2008 and 2009, with no
follow-on commitment to further work or production. As a result, it is
impossible for the Company to predict whether the CREW3 program might result
in an eventual migration to entirely new equipment and support systems, or
whether, instead, ongoing upgrades and advanced new versions of equipment
currently in service will meet the same objective.
"What we do know is that we've been here before," said David Luxton.
Allen-Vanguard was not selected for the earlier CREW2 program, but
nevertheless went on to capture major U.S. military programs on merit. "That
kind of success, in the U.S. and internationally, derives from our technology
design strategy, which has long anticipated the evolving requirements of
users," added Mr. Luxton. "We therefore expect to field very advanced
next-generation jammer technology with CREW3 level capability well in advance
of the CREW3 program timetable. As before, we expect this will be attractive
to customers on its merits."
The Company stated that it is also pursuing Homeland Security
opportunities in the U.S. and major program opportunities overseas, leveraging
its global reach and strengthening its partnerships. Jammers are one part of a
core counter-IED mission capability that also includes robots and bomb suit
helmets, all incorporating radio frequency systems that must be interoperable.
"We are uniquely able to provide this kind of interoperable suite, and we
remain confident that customers will find our offerings compelling," concluded
The Company expects little impact from the CREW3 announcement on its
revenue and EBITDA for fiscal 2008, previously projected at approximately
$500 million and $160 million respectively. The Company said it would comment
further should it acquire follow-on information about the CREW3 program, and
as well in conjunction with the release of its financial results for fiscal
2007, scheduled for December 17, 2007.
Allen-Vanguard Corporation supports the mission of military and homeland
security forces around the world with leading proprietary solutions for
protection and counter-measures against hazardous devices of all kinds,
whether chemical, biological, radiological or explosive (CBRNE), including
improvised explosive devices (IEDs) and remotely controlled IEDs (RCIEDs).
Allen-Vanguard equipment is in service 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, and personal protective wear for use in dealing with explosive
and bio-chemical agents. Allen-Vanguard is the developer and/or sole,
worldwide licensee of proprietary technologies such as the Med-Eng bomb suit,
the Defender(TM) and Vanguard(TM) Mk2 bomb disposal robots, and the Universal
Containment System and CASCAD Foam system for blast mitigation and
decontamination of bio-chemical warfare agents. Professional services
encompass counter-IED intelligence, training and advisory services, including
the Triton(TM) Report on terrorist incidents around the world. The Company
operates globally through its wholly-owned subsidiaries under the names
"Allen-Vanguard", "Med-Eng" and "Hazard Management Solutions". Head office
operations are located in Ottawa, Ontario, Canada, with manufacturing
operations in Stoney Creek and Pembroke, Ontario; Ogdensburg, New York;
Tewkesbury, U.K.; and Cork, Ireland; The Company has professional services
operations in Shrivenham, UK, Canada and in the U.S. in Arlington, Virginia,
plus sales offices in Canada, the U.S., the U.K. and Asia. Allen-Vanguard's
shares are listed on The Toronto Stock Exchange (TSX) under the symbol "VRS".
This press release may contain forward-looking statements, which reflect
Allen-Vanguard's current expectations regarding future events, its strategy,
expected performance and condition. Forward-looking statements include
statements that are predictive in nature, that depend upon or refer to future
events or conditions, or that include words such as "expects," "anticipates,"
"plans," "believes," "estimates" or negative versions thereof and similar
expressions. In addition, any statement that may be made concerning future
performance, strategies or prospects, and possible future acquisitions or
dispositions, is also a forward-looking statement. Forward-looking statements
are based on current expectations and projections about future events and are
inherently subject to, among other things, risks, uncertainties and
assumptions about the Company and economic factors. Forward-looking statements
are not promises or guarantees of future performance, and actual events and
results could differ materially from those expressed or implied in any
forward-looking statements made about the Company. Any number of important
factors could contribute to these digressions, including, but not limited to,
general economic, political and market factors in North America and
internationally, interest and foreign exchange rates, global equity and
capital markets, business competition, technological change, changes in
government regulations, unexpected judicial or regulatory proceedings, and
catastrophic events. We stress that the above-mentioned list of important
factors is not exhaustive. We encourage you to consider these and other
factors carefully before making any investment decision and we urge you to
avoid placing undue reliance on forward-looking statements. Further, you
should be aware that the Company disclaims any obligation to publicly update
or revise any such forward-looking statements whether as a result of new
information, future events or otherwise, prior to the release of the next
Management Discussion and Analysis to be released by the Company or except as
required by law.
To find out more about Allen-Vanguard Corporation (TSX: VRS), visit our
website at www.allen-vanguard.com.
For further information:
For further information: David Luxton, (613) 288-5555