The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

Envirotest Receives Requisite Consents to Amend Note Indentures

19 August 1997

Envirotest Receives Requisite Consents to Amend Note Indentures

    SUNNYVALE, Calif., Aug. 19 -- Envirotest Systems Corp.
(AMEX: ENR) today announced that it has received the requisite consents from
the holders of a majority of its outstanding 9.125% Senior Notes due 2001 and
a majority of its outstanding 9.625% Senior Subordinated Notes due 2003 to
certain amendments to the indentures governing such notes.
    The amendments will permit the Company to make $10 million in additional
restricted payments and investments (as defined in the indentures).  In
addition, the proposed amendments provide that on or prior to September 30,
1997, the Company may elect for one or two additional increases of $5 million
each.
    The proposed amendments will become operative upon the expiration of the
Company's previously announced offer to purchase up to $50 million in
aggregate principal amount of the 9.125% Notes at a price of par plus accrued
and unpaid interest, regardless of the amount of the 9.125% Notes tendered or
acquired.
    Consenting holders of the notes will receive a payment of 1.0% of the
principal amount of the notes covered by the consent, plus an additional .5%
of the principal amount for each $5 million optional increase exercised by the
Company, on the earlier of (i) five business days after the expiration of the
9.125% Notes Offer and (ii) September 30, 1997.
    Envirotest Systems Corp. is the largest provider of vehicle inspection
services in the country and the only domestic company that provides vehicle
inspection services outside the United States.
    This press release contains statements that are forward-looking statements
within the meaning of Section 21E of the Securities Exchange Act of 1934,
which represent the Company's expectations or beliefs concerning future
events.  The Company cautions that these statements are further qualified by
important factors that could cause actual results to differ materially from
those in the forward-looking statements.  A number of such factors are set
forth in the Company's filings with the Securities and Exchange Commission,
including the Company's Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q.

SOURCE  Envirotest Systems Corp.