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

Company Restructures Its Warehouse, Refrigerant Distribution and Reclamation Operations, Reducing Workforce By 18%, and Closing Four Remote, Full-Service Warehouse Locations; Expects Annualized Savings of $2 Million

Company Restructures Its Warehouse, Refrigerant Distribution and Reclamation Operations, Reducing Workforce By 18%, and Closing Four Remote, Full-Service Warehouse Locations; Expects Annualized Savings of $2 Million

    FORT WORTH, Texas, Aug. 28 EVTC, Inc. , a
national provider of complete refrigerant solutions, today announced a
business restructuring initiative to align the Company with current market
conditions and prepare it for future profitable growth.  The Company will
close four remote, full-service warehouse locations and, in conjunction with
those closings, is reducing its workforce by 18%.  These actions are being
taken to take advantage of the excess capacity it has at its Fort Worth,
Texas, facility and to utilize a more efficient refrigerant distribution and
reclamation business model.
    The Company is closing full-service warehouse operations in four locations
across the country.  This action reflects a realignment in strategy for its
distribution and reclaim network by integrating its on-site service business
model, utilizing a fleet of refrigerant recovery trucks and public warehouse
facilities, for all of its Full Circle subsidiary refrigerant operations.
This is consistent with the business strategy adopted with the acquisition of
its RMS subsidiary made last year.  The Company expects to realize annualized
pre-tax savings of $2 million from these actions.
    "We are integrating the more cost efficient business model represented by
our existing on-site service operations," said Bob Stephens, CEO.  "We're
continuing to take significant measures to adapt our business in the face of
changing conditions.  While we deeply regret the impact of these actions on
the employees we have had to release, we must focus on this cost and expense
structure, creating a business model that will ensure the long-term health of
our Company and make it possible to continue to invest strategically for the
future."

    Business Restructuring Initiatives
    Warehouse operation closures:  EVTC is taking steps to contain costs and
expenses and integrate a more efficient business operating model.  Each
warehouse closure is designed to eliminate duplicate operating activities that
are more efficiently performed at its Fort Worth facility.  This move is also
designed to take advantage of the under-utilized capacity of its warehouse and
refrigerant reclaim operations at that facility.
    Reduction of workforce levels:  As the Company realigns its refrigerant
distribution and reclamation operations, it will reduce its workforce by
18%, a total of 28 employees.  EVTC's total workforce prior to this action was
152.  The releases are expected to be completed by September 30, 2001.
    "We remain optimistic about the long-term growth opportunities for our
industry and our business," said Stephens.  "With our unique strengths and the
actions we're taking today, we believe we will be strongly and competitively
positioned for the future."

    About EVTC, Inc.
    EVTC, Inc. is a national provider of complete refrigerant solutions.  The
Company markets and sells refrigerants and provides refrigerant reclamation
services.  The Company markets a complete line of reclaimed and virgin
refrigerants to HVAC/R wholesalers, mechanical contractors and large
institutional and government users of refrigerants and into the automotive
aftermarket.  The Company also recycles fluorescent lamps and PCB ballasts.

    Forward-Looking Statements
    Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995:  Certain statements contained in this press release are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, including, without limitation, the Company's
industry position, financial condition and structure.  Such forward-looking
statements are subject to risks, uncertainties and other factors that could
cause actual results to differ materially from future results expressed or
implied by such forward-looking statements.  Investors are cautioned that any
forward-looking statements are not guarantees of future performance and
involve risks and uncertainties and that actual results may differ materially
from those contemplated by such forward-looking statements.  Such risks
include, without limitation, risks associated with the Company not being able
to successfully implement its new strategies, the risk that new acquisitions,
if any, will not be successfully integrated into the Company, the seasonality
of the Company's sales, the Company's competition, the Company's dependence on
supplier relationships and risks related to the Company's borrowings.

     Contact:  EVTC, Inc. t/a Environmental Technologies, Corp.
               Investor Relations
               Phone (817) 759-8900
               Fax (817) 759-8901
               ir@evtc.com

Click here