ENVIRONMENTAL TECTONICS CORPORATION >>>>>NEWS RELEASE<<<<<

SOUTHAMPTON, Pa., May 2 /PRNewswire/ -- Environmental Tectonics Corporation (Amex: ETC) today announced financial results for the fourth quarter and fiscal year ended February 23, 2001.

For the fiscal year ended February 23, 2001, net income was $2,021,000, or $.27 per share (diluted), versus a net income of $2,837,000 or $.36 per share (diluted) for 2000. Sales were $32,452,000, a decrease of $2,468,000 or 7% from the prior year. Sales performance was mixed, with the most significant decreases being evidenced in the Company's Polish Subsidiary and Simulation and Hyperbaric product areas. A partial offset was seen in the Environmental, Sterilizer and Entertainment (which increased $4,719,000, 128%) lines and sales from the Company's European Subsidiary, which was purchased in March 2000. Geographically, international sales, including those from the Company's foreign subsidiaries, were down $7,363,000, 31%, although this decrease was partially offset by increased domestic sales, up $5,566,000, 58%, most of which came from the aforementioned Entertainment line. Despite the reduced sales, gross profit for the year increased $277,000 or 2% over Fiscal 2000 primarily reflecting the sales increase and an improved gross margin rate domestically in the Entertainment line and increased gross profit in Aircrew Training Systems on higher domestic and international claims revenue and corresponding gross profit. Claims bookings for the year increased operating income by approximately $1.3 million, net of associated manufacturing costs and legal expenses. Included in the above was a claim against an international customer which was settled in the fourth quarter.

For the current fiscal quarter, the Company had net income of $794,000 or $.11 per share (diluted), versus a net income of $867,000 or $.11 per share (diluted) for the fourth quarter of 2000. Sales for the quarter were $9,679,000, an increase of $440,000 or 5% over the fourth quarter of 2000.

                                        Selected Financial Data
                              (thousands, except per share information)
                            Three months ended:        Fiscal Year ended:
                         February 23,  February 25, February 23,
February 25,
                             2001          2000         2001          2000

    Sales                   $9,679        $9,239      $32,452       $34,920
    Operating Income        $1,501        $1,784       $4,122        $5,327
    Pre-tax income          $1,266        $1,540       $3,198        $4,480
    Minority interest          $27          $129          $51           $70
    Net income                $794          $867       $2,021        $2,837
    Net income avail.
     to common shareholders   $794          $867       $2,021        $2,671
    Earnings per share
       Basic                  $.11         $ .13         $.29          $.40
       Average shares    7,111,000     6,862,000    7,087,000     6,604,000
       Diluted                $.11         $ .11         $.27         $ .36
       Average shares    7,443,000     7,649,000    7,499,000     7,319,000

William F. Mitchell, ETC's President and Chairman, stated that, "The results for fiscal 2001 reflect the many initiatives the Company began during the year. This includes development of new products, unprecedented spending on research and development, expanding our operation in Turkey, and a corporate-wide ramp-up of worldwide marketing efforts.

"In the summer of 2001 ETC plans to launch its General Aviation Trainer II (GAT II(TM)), our low cost motion based flight trainer that will be the first general aviation flight trainer that addresses Spatial Disorientation in flight, the cause of John F. Kennedy, Jr.'s accident. We expect this innovative new trainer to change the way pilots are trained by providing increased safety to current training programs.

"In September 2000 we purchased the assets of the "Pro-Pilot(TM)" high fidelity flight simulation software. Our goal is to integrate portions of this software into our GAT II(TM) and also to develop the next generation flight simulation software game.

"This past year saw a significant increase in bookings for our Bara-Med(R) Monoplace Hyperbaric chambers in Japan. Japan is recognized as one of the largest markets for Hyperbaric Medicine in the world. Also in this past year we have seen a steady growth of booking and sales for our newly introduced general-purpose sterilizer control system.

"With the addition of Captain Ernie Lewis (ret.) to head our Emergency Public Incident Coordination (EPIC(TM)) applications, we will apply our Advanced Disaster Management Systems (ADMS™) expertise to provide the platform for interactive police and military training scenarios on a real time basis.

"Reported research and development expenditures were over $900,000, although this figure does not include R&D charged directly to specific projects which is included in the cost of goods sold. I estimate true R&D expenditures ranged at least three times that figure, with a significant portion attributed to non-recurring costs. And, to accommodate multiple new projects, we spent over $1.5 million to add a second State of the Art Test Lab, named "The Ride Works(TM)", to our main facility. The use of this unique facility will be to develop new high end Entertainment rides.

"Looking forward, I expect to see the benefits of our many programs as the seeds we have planted begin to grow."

ETC designs, develops, installs and maintains aircrew training systems, public entertainment systems, process simulation systems (sterilization and environmental), clinical hyperbaric systems, environmental testing and simulation systems, and related products for domestic and international customers.

Certain matters in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. This includes, but is not to limited to, market acceptance of new products, competitive actions, economic conditions, and other risks indicated in filings from time to time with the Securities Exchange Commission.

CONTACT: Duane D. Deaner, CFO of Environmental Tectonics, 215-355-9100, ext. 1203, or fax, 215-357-4000, or ddeaner@etcusa.com