U.S. Based Environmental Systems Products Expands International Vehicle Inspection Business in Asia

ESP Technology and Equipment to Target Region's Severe Air Pollution

EAST GRANBY, Conn., Jan. 21 -- Environmental Systems Products Holdings Inc. (ESP) formally opens an international office and production center tomorrow (January 22, 2005) that will manufacture a full range of motor vehicle emissions test equipment in Shanghai, China. More than 50 international and local dignitaries will tour the manufacturing center and view a demonstration of ESP's new technologies and equipment. The equipment is designed to help reduce the growing problem of motor vehicle air pollution in China and the Asia-Pacific regions of the world. Environmental Testing Systems (ESP China) Ltd. is a wholly owned subsidiary of ESP, the world's leading provider of vehicle inspection technology, equipment and services, based in the United States.

"ESP China is helping our Asian partners improve public health by providing solutions that make vehicles cleaner and safer. Our local manufacturing center in China brings us closer to our customers in China and across Asia," said Jeff Vogt, Senior Vice President of International Business Development. "Our Shanghai operation will allow ESP to deliver products and support to our Asian customers with precision, speed and enhanced service. We're committed to this marketplace and to assisting government officials in their important work for improved air quality and vehicle safety," continued Vogt.

China is already a key market for ESP. The city of Beijing chose ESP as its top emissions testing equipment provider in 2001. The move marked a major expansion of ESP's international operations. The company is supplying enhanced emissions testing equipment and technology with local partners. ESP also has a strategic alliance with Toyota Tsusho Corporation, a trading company within the Toyota Group of companies. The partnership was established to introduce

ESP's patented remote sensing technology and emissions testing systems and services to the Japanese market.

ESP's Shanghai facility will be an important staging area for the company's rapid growth in China and the Asia-Pacific region. The Shanghai factory will also serve as a regional technical, customer service, warranty support, and spare parts distribution center.

Many Asian economies are seeing strong economic growth, and with it, rapidly increasing vehicle fleets. With an annual growth rate exceeding 15%, this expanding vehicle population is causing severe traffic congestion and pollution problems.

ESP is pleased to offer cost effective, clean air solutions to help safeguard public health and the environment in Asia. The company will expand the use of its data management, vehicle emissions testing services and remote sensing technology throughout the Asian marketplace. Remote Sensing Devices (RSD) measure tailpipe emissions as motor vehicles pass through ultraviolet and infrared beams cast across a roadway.

About ESP

ESP offers a comprehensive array of vehicle emissions and safety inspection products and services, helping people around the world by identifying vehicles that are unsafe, or polluting the air. ESP programs, technology and services test more than 27 million vehicles each year. The company's centralized programs inspect 12 million vehicles in nine states and the Canadian Province of British Columbia. ESP also manufactures and markets emissions and safety test equipment and offers warranty support, post-sale servicing and independent data management for U.S. and international programs. The company has an installed base of over 12,000 emissions units performing 15 million vehicle inspections in North America, China, Egypt, Germany, India, Mexico, Sri Lanka, Japan, the United Kingdom and Taiwan.