Allen-Vanguard finalizes stock-based compensation

    OTTAWA, June 12 /CNW Telbec/ - Allen-Vanguard Corporation (the "Company"
or "Allen-Vanguard") (TSX: VRS) of Ottawa, Canada, today confirmed the final
calculated amount and payment of stock-based compensation to management due
June 1st, 2007, under previously disclosed employment agreements with the CEO
and CFO.
    The total amount of the compensation, based on the average share price of
the 40 trading days from April 4, 2007 - May 31, 2007, was $3.7 million. In
the Company's second quarter ended March 31, the total amount was estimated at
$3.6 million (based on only the 24 trading days from April 4, 2007 to the date
of the MD&A for the period). The Company accrued an expense of $3.1 million as
stock-based compensation for the second quarter, which was the pro-rated
amount of the estimated bonus related to the service incurred up to March 31,
2007, or 15 out of 17 months. The remaining $0.6 million will be recorded as
stock-based compensation expense in the Company's third quarter ended June 30,
    Under the terms of the arrangement the board of directors of the Company
had the discretion to pay out the bonus in cash or shares providing that no
less than 50% of the payment was made in cash. A cash payment of $3.4 million
has been made, and the Company intends to pay the balance of $300,000 in the
form of restricted stock, subject to necessary approvals. Mr. Luxton,
President and CEO, has chosen to forego $400,000 of his bonus, including
$100,000 in cash and $300,000 in restricted stock. These amounts will instead
be allocated among other senior managers, with the stock component
representing a stock-based retention incentive for the next three years.
    The compensation arrangement was approved by the Company's Governance and
Compensation Committee as a past and future performance bonus when the
Company's share price was near $1 and its market capitalization was less than
$40 million. "Under the leadership of this management team, the Company has
turned a corner, the shares now trade around $6, and the market capitalization
exceeds $350 million. The management bonus has clearly been well earned and
our shareholders well rewarded," said David O'Blenis, Chairman of the Board of
Allen-Vanguard. "Furthermore, we are extremely pleased at the voluntary
initiative of Mr. Luxton to personally forego more than 10% of his total
performance bonus in favour of retaining and providing incentive to other key
management, which will benefit all shareholders."

    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

    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

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

For further information:

For further information: David Luxton, (613) 769-5353

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