Yeah. It does. However I think it's a "Bug" that will be corrected. As it didn't work that way when Factions came out. Or when Nightfall came out. But it was "Changed" when Eye of the North came out. I had used it before Eye of the North and can say it didn't block for me.
So I think that sometime they'll get around to "Fixing" it. As it currently is it's waaaaay overpowered. Hell, as it originally was it could be pretty powerful. I used to two warrior farm with someone, each of us using that to cover the other on top of other defenses.
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Niva Reikan: Warrior/Monk, Kurzick Champion
Arcturus Highwind: Paragon/Ranger
Pet: ROUS
Walker Tam: Warrior, Defender of Ascalon in Training
Nikolia Vasburg: Ritualist/Necromancer