Allen-Vanguard Corporation comments on story that U.S. forces may limit requirements for Mine Resistant Ambush Protected (MRAP) vehicles
 
OTTAWA, Nov. 30, 2007 (Canada NewsWire via COMTEX) -- (Canada NewsWire)
 
Allen-Vanguard Corporation ("Allen-Vanguard" or the "Company") (TSX:VRS) commented today on press reports that certain U.S. forces may reduce requirements for MRAP vehicles, and the potential impact of this for requirements for Electronic Counter Measures (ECM) equipment from Allen-Vanguard.

"We note that there is a report circulating today that certain U.S. forces may reduce their requirements for MRAP vehicles by approximately 1,000 units," said David E. Luxton, President & CEO. "We have not been able to substantiate this report but in any case do not expect this to have any material impact on requirements for our ECM systems, which are independent of vehicle type. Accordingly, we are not aware of any changes to ECM requirements that would adversely affect our expectations for fiscal 2008.

The Company also noted reports that the effectiveness of ECM equipment in Iraq has led to a reduction in attacks of improvised explosive devices (IEDs). "We view this as favourable for the future prospects of ECM programs, since military forces tend to do more of what works, not less," said Mr. Luxton. "We recognize that the present political climate in the U.S. is creating some understandable nervousness around military budgets and plans, which we will have to weather, but we believe that essential protection for ground forces will continue to receive strong support under any scenario."