- Estimated value $240-$300 million assuming maximum quantities
- Initial order for $7 million
OTTAWA, Sept. 25 /CNW Telbec/ - Allen-Vanguard Corporation (TSX: VRS)
("Allen-Vanguard" or the "Company") of Ottawa, Canada today announced that it
has signed a Requirements Contract with Lockheed Martin for up to
7,500 Symphony ECM (or "jammer") component systems over three years, plus
associated spares and accessories. The Company also today received an initial
order under the Requirements Contract for approximately $7 million of Symphony
component systems, and expects to deliver this order in the first quarter of
fiscal 2009, which commences October 1, 2008. All amounts are in Canadian
dollars unless otherwise specified.
The Requirements Contract signed today is in reference to the U.S.
Department of Defense pre-solicitation notice of January 31, 2008, for a
sole-source Indefinite Delivery/Indefinite Quantity (IDIQ) contract to
Lockheed Martin for up to 2,500 Symphony jammers per year for three years.
Allen-Vanguard is the licensor and exclusive supplier of proprietary
jammer component technology under a seven year Technology License and Supply
Agreement (TLSA) signed with the Maritime Systems and Sensors division of
Lockheed Martin in December, 2005.
Under the Requirements Contract signed today, Lockheed Martin has the
right to exercise orders up to a maximum quantity of 2,500 units in any
calendar year during the effective period, which commences September 23, 2008,
and terminates December 31, 2011. Should the maximum annual quantities be
procured the estimated value to Allen Vanguard over the three-year term of the
contract would be in the range of $240-$300 million, depending on the quantity
of spares and accessories.
As stated in the Company's previous Symphony order announcement of
August 5, 2008, Symphony system requirements by foreign governments are
expected to be processed under the U.S. Foreign Military Sales (FMS) process.
As a result, Allen-Vanguard expects that Symphony component system orders from
Lockheed Martin may be placed in varying quantities at irregular intervals.
Forward looking statements
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.
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 DefenderTM and VanguardTM 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 TritonTM 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".
To find out more about Allen-Vanguard Corporation (TSX: VRS), visit our
website at www.allenvanguard.com.
For further information:
For further information: David Luxton, CEO, (613) 288-5555