| Southampton, PA. May 13, 2002:ENVIRONMENTAL TECTONICS CORPORATION (AMEX: "ETC") announced today a final settlement agreement covering long-standing issues with the U.S. Navy for approximately $7 million. The issues were raised under a contract awarded to ETC in 1990 for a Human Centrifuge that is used to train Navy pilots of high-performance aircraft that is installed at the U.S. Naval Air Station, Lemoore, CA. The agreement was reached by the mutually cooperative efforts between the Navy and ETC. The Navy Centrifuge, dubbed the CFET (Centrifuge-based Flight Environment Trainer), has been employed to train pilots at NAS Lemoore since 1996. It is one of the most technically advanced training centrifuges in the world, and has received high praise from experienced Navy pilots and trainees alike. William F. Mitchell, ETC's President and CEO, expressed his great satisfaction in making the announcement of the agreement with the Navy, stating that: "Both sides were willing to work together to reach a fair agreement and, most importantly, we concluded it on very amicable terms. We plan to continue our close association with the Navy on the CFET program for many years to come". ETC also 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 contains certain "forward-looking" statements including, without limitation, statements containing the words "believes", "anticipates", "intends", "expects", and words of similar import relating to the Company's operation. 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 periodic 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. |
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