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Envirotest is Expanding Commercialized Testing of its Proprietary Remote Sensing Vehicles Emissions Testing Technology

18 March 1998

Envirotest is Expanding Commercialized Testing of its Proprietary Remote Sensing Vehicles Emissions Testing Technology

    SUNNYVALE, Calif., March 18 -- In response to inquiries,
Envirotest Systems Corp. (Amex: ENR) today stated that it is commencing
commercialization of its proprietary vehicle emissions testing method, Remote
Sensing Technology (RST).  Using patented infrared spectroscopy technology RST
can monitor exhaust emissions remotely and unobtrusively while vehicles are
being driven on streets and highways.
    In this regard, Envirotest confirmed yesterday's CNBC news report that it
has entered into a pilot testing contract for its RST testing method with New
York City and will begin testing under that contract in approximately three
weeks.  In addition, Envirotest recently announced that it has entered into
lease agreements under which it will provide for testing eight RST units for
use in Taiwan, reflecting the increased attention by Taiwan's government
regarding the health effects of air pollution.
    Chester Davenport, Chairman of Envirotest Systems Corp., stated, "We view
RST as a break through technology for vehicle emissions testing and for
Envirotest.  Among other things, this technology potentially provides
Envirotest with the ability to expand its business in a substantial manner
into the decentralized vehicle emissions testing market where approximately
35 million vehicles are tested annually.  Envirotest presently is the largest
participant in the centralized vehicle emissions testing market."
    Envirotest has experienced substantial improvement in its financial
performance.  For its first fiscal quarter ended December 31, 1997 it achieved
its third consecutive quarter of profitability.  For the quarter,
traditionally its weakest period, it achieved net income of $627,000, or
$.05 per share, compared to a net loss of $6,174,000 or, $.37 per share.  This
year's fiscal first quarter revenues of $36,937,000, represented an
18.5% increase in revenues over the prior year's fiscal quarter of
$31,179,000.
    Envirotest Systems Corp. is the leading 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 represents 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 Corporation