News Release
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| ETC Announces Implementation of a Strategic Initiative Aimed at Strengthening Business Group Performance |
| Southampton, Pa, January 10, 2007: - Environmental
Tectonics Corporation (Amex: ETC) ("ETC" or the "Company") today announced
that it was implementing some of the recommendations which management
developed in conjunction with Antiphony consultants during the major
planning process undergone last fall. Effective with the beginning of the
Company's new fiscal year (February 24, 2007), the Company will re-organize
its many business units into two main operating groups: the Training
Services Group and the Control Systems Group.
The Training Services Group ("TSG") will include the Company's new NASTAR Center, the aeromedical and entertainment ("EnTCo") product lines, International Logistics Support, and ADMS, the Company's simulation unit. The Control Systems Group ("CSG") will consist of the sterilizer, environmental, hyperbaric and parts and services businesses. William F. Mitchell, ETC's President and CEO, will direct the TSG, although it is anticipated that a separate president, reporting to Mr. Mitchell, will be hired to run the ADMS unit in Orlando, Florida. Tom Loughlin, currently ETC's Chief Operating Officer, will assume the role of President of CSG. Continuing in their current roles will be Dick Leland, President of NASTAR Center, and Rob Lloyd, President of EnTCo. The Company plans to create separate legal entities for some of the operating groups, all of which will be wholly owned subsidiaries of ETC. ETC-PZL, the Company's 95% owned subsidiary in Poland, and ETC Europe, the Company's 99% owned subsidiary in England, will continue as currently structured. It is anticipated that the re-organization will be in place by the end of ETC's first fiscal quarter. Additionally, in an effort to determine and unlock enterprise value and technology which ETC has developed over the past 35 years, the Company plans to engage a major Philadelphia-based valuation firm to appraise ETC's intellectual assets including software. These assets have significant value which is not currently reflected on the Company's balance sheet. William F. Mitchell, ETC's President and Chairman, commented, "Global terrorism, international conflicts and overall general economic conditions have caused a major shift in training, products and services procurement. Focusing ETC's many product offerings into two groups and strengthening executive management within each group will allow each business unit to maximize their individual core competencies. I look forward in 2007 to a rededication of your Company's efforts at all levels." | |
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This press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934. We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about the Company that may cause our actual results, levels of activity, performance or achievements to be materially different from any other future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "could", "would", "expect", "plan", "anticipate", "believe", "estimate", "continue", or the negative of such terms or similar expressions. Factors that might cause or contribute to such a discrepancy include, but are not limited to, contract cancellations, failure to obtain new contracts, political unrest in customer countries, unfavorable results in litigation, general economic conditions, and those issues identified from time to time in our Securities and Exchange Commission filings and other public documents, including, without limitation, our Annual Report on Form 10-K for the fiscal year ended February 24, 2006.