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Environmental Systems Products Announces Extension of Contract

1 April 1999

Environmental Systems Products, Inc. Announces Seven-Year Extension of British Columbia AirCare Contract

    EAST GRANBY, Conn., April 1 -- Environmental Systems
Products, Inc. (ESP) reported today that the Greater Vancouver Transportation
Authority (GVTA) Board of Directors has agreed to extend the Company's current
contract to provide vehicle emissions testing services in the Lower Mainland
area of Vancouver, British Columbia. ESP's wholly owned subsidiary, Envirotest
Canada, has operated the AirCare emissions inspection program since September
of 1992. The Company operates 12 inspection stations testing more than
1.1 million vehicles annually.
    The seven-year contract extension will include significant improvements to
the current testing program. Some of the changes proposed by the GVTA Board
for AirCare II include:  a biennial transient test for vehicle model years
1992 and newer; an enhanced test for model years 1991 and older; a new smoke
measurement test for all diesel vehicles; and dynamometers capable of testing
all-wheel-drive vehicles.
    Terrence P. McKenna, President and Chief Executive Officer of ESP said,
"We are very pleased to continue our relationship with the Province of British
Columbia through the AirCare Program. We are confident in our ability to
maintain a high level of customer service in the current program, while
simultaneously transitioning to the new test. Our staff at Envirotest Canada
will work closely with the GVTA in making AirCare II an excellent example of a
private/public partnership."
    Last week, Envirotest Canada signed a four-year labor agreement with the
British Columbia Government and Service Employees' Union (BCGEU). The new
partnership provides AirCare employees with a wage increase over four years
with improved benefits.
    ESP is the leading worldwide provider of vehicle emissions testing
equipment and services. The Company designs, manufactures and services
emissions testing equipment that is installed in service stations, automotive
repair shops and dealerships domestically and internationally. ESP also tests
approximately 12 million vehicles annually in high-volume, test-only
facilities.