| SOUTHAMPTON, Pa., Nov. 27 /PRNewswire/ -- Environmental Tectonics
Corporation (Amex: ETC) announced that it recently concluded a significant
joint agreement on a number of open matters under a contract with its major
entertainment industry customer. The agreement will prove advantageous to ETC
both on a short-term and long-term basis. The contract amount was increased
by $5 million and converted from fixed price basis to time-and-materials, with
a stated min-max price and guaranteed profit level. A significant lump-sum
payment was also made to cover outstanding change orders. Likewise, a major
contribution was made toward the cost of ETC's recent building addition that
was designed and erected to produce and test the customer's ride system. In
addition, the Company will be the exclusive supplier for additional rides
should the customer determine to proceed with additional rides in other
entertainment ride locations for a five-year period. William F. Mitchell, ETC's president and CEO, commented on the agreement, noting that, "I am extremely pleased that we could jointly arrive at this significant agreement as a co-operative effort between our customer and ourselves to ensure the success of this very important project. It has proven to be far more challenging than either of us had imagined at the outset, and we both concluded that these matters had to be resolved without further delay." 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. This report certain "forward-looking statements" including, without limitation, statements containing the words `believes,' `intends,' `anticipates,' `expects' and words of similar import relating to the Company's operations. There are important factors that could cause actual results to differ materially from those indicated by such forward-looking statements including contract cancellations, political unrest in customer countries, general economic conditions and the risk factors detailed from time to time in Environmental Tectonics Corporation's period reports filed with the Securities and Exchange Commission, including, without limitation, Environmental Tectonics Corporation's Annual Report on Form 10-K for the fiscal year ended February 23, 2001. |