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| ETC Initiates a Major Planning Process Aimed at Unlocking Enterprise Value |
| Southampton, Pa,September 19, 2006: - Environmental Tectonics Corporation (Amex: ETC) ("ETC" or the "Company") today announced they were undergoing a major planning process whose goal is to strengthen the Company and maximize shareholder return. It is expected that this initiative would ultimately result in a finer focus along business lines and the implementation of new business models. Over its 37-year history ETC has developed significant products and technologies. "It is now time to capitalize on these assets".
A key element of this process was discussed in the President's message in the Annual Report under "Our vision of the future of training": "ETC's National Aerospace Training and Research (NASTAR) Center is our initiative to accommodate the new world reality in training. This "new world reality" is new in two ways: WHAT can be trained and HOW this training is contracted. This center will be a technology hub for world-class pilot training, research and space flight orientation." Another key aspect of the planning process will involve a review of our Disaster Management Simulation business model. Training budgets are a significant expenditure for most first responder organizations and our Advanced Disaster Management Simulator products provide a safe and least cost approach to disaster readiness. To assist ETC in planning and implementing this major initiative, we have retained Antiphony, a Philadelphia based strategy and management consulting firm that helps companies create substantial value through innovation. Through their proprietary Relaunch® methodology, Antiphony works with senior executives to successfully develop innovative business models, conceive and bring new products and services to market, and drive top-line growth. "ETC has a 37-year history of building and delivering technology solutions of the highest quality," said Jeffrey Babin, Managing Director, Antiphony. "It is expected that this planning initiative will result in a streamlined enterprise able to satisfy the training requirements of mission-critical personnel in military and civilian markets and increase value to the shareholders." William F. Mitchell, ETC's President and Chairman, commented, "Over our history, ETC's ability to find creative business solutions to changing world conditions has been one of our greatest strengths. In our industrial lines, ETC has succeeded in developing original and proven products. Our NASTAR Center strategy continues to receive high interest from a diversified and broad base of research and training customers. Our ADMS solution is unique in the industry. I feel very strongly that this planning process will result in a stronger and more versatile ETC, one able to address the significantly changed training requirements and one positioned to capture maximum value from our advanced and unique technology base." | |
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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.