Beijing Chooses ESP as Top Provider for Enhanced Emissions Program; Beijing Environmental Protection Bureau To Use Emissions Equipment in New Program

    EAST GRANBY, Conn.--April 8, 2002--Responding to China's State Environmental Protection Agency's (SEPA) concerns about air quality in major cities, the city of Beijing chose Connecticut-based Environmental Systems Products Holdings Inc. ("ESP") as the top emissions testing equipment provider for its enhanced vehicle emissions program.
    Beijing is the first city in China to implement such a program.
    In the international collaboration, ESP is supplying enhanced emissions testing equipment and technology with its partner, Hong Kong- and Beijing-based Pioneer Environmental Systems Products Ltd. In March, Beijing began administering a loaded-mode emissions test at 10 facilities. This testing method simulates actual driving conditions and provides a more accurate evaluation of exhaust emissions than previous testing methods. The Beijing Environmental Protection Bureau (BEPB) will phase in this procedure at all of its 38 testing facilities throughout Beijing. ESP soon will open a technical service center to provide service and support to its Beijing customers.
    "The new test procedures will bring significant improvement to Beijing's vehicle emissions program and overall air quality," said Michael Chambrello, President and CEO, ESP. "By providing high quality equipment and service, ESP is on the cutting edge of vehicle emissions testing both at home and internationally. This marks a major expansion of ESP's international operations."
    Beijing's vehicle population has swelled to more than 1.3 million vehicles and is increasing 12-15 percent a year. It is estimated that in major Chinese cities (Beijing, Shanghai, Tianjin and Guangzhou), vehicle emissions account for over 60% of total air pollution. Government projections indicate air pollution is likely to increase in future years, largely due to traffic growth.

    About Beijing Emissions Program

    In response to serious air quality concerns, increasing vehicle usage and growing public environmental awareness, China's State Environmental Protection Agency (SEPA) called on major cities and provinces to implement enhanced vehicle emission testing procedures.
    It is estimated that in major Chinese cities (Beijing, Shanghai, Tianjin and Guangzhou) vehicle emissions account for over 60 percent of total air pollution and government projections indicate air pollution is likely to increase in future years, largely due to growth in traffic.
    Underscoring its commitment to reducing vehicle emissions, Beijing is the first city in China to transform its vehicle emissions program. With Beijing's vehicle population swelling to more than 1.3 million vehicles and the vehicle population growing at 12-15% a year, the Beijing Environmental Protection Bureau (BEPB) announced its plan to begin an enhanced emissions inspection program. The BEPB plans to phase in testing in all 38 testing facilities throughout Beijing.

    About Environmental Systems Products Holdings Inc.

    ESP, headquartered in East Granby, Conn., is the world's leading full-service provider of vehicle emissions testing solutions to domestic and international markets. The company currently operates centralized emissions testing programs in 11 states the province of British Columbia. ESP also manufactures a full range of decentralized emissions testing equipment with an installation base of over 11,000 units in North America. ESP provides or has provided equipment, technology and services to Australia, China, Egypt, Germany, India, Mexico, the United Kingdom and Taiwan. Over 100 professionals are wholly dedicated to research and development at ESP's R&D facility -- the Tucson Technology Center located in Arizona. The Tucson Technology Center focuses on the development and application of new technologies to meet evolving customer expectations and program goals. ESP licenses or holds close to 100 patents related to emissions testing technology in the U.S. and abroad.