ETC Announces Implementation of a Strategic Initiative Aimed at Strengthening Business Group Performance
Southampton, Pa, January 10, 2007: - Environmental Tectonics Corporation (Amex: ETC) ("ETC" or the "Company") today announced that it was implementing some of the recommendations which management developed in conjunction with Antiphony consultants during the major planning process undergone last fall. Effective with the beginning of the Company's new fiscal year (February 24, 2007), the Company will re-organize its many business units into two main operating groups: the Training Services Group and the Control Systems Group.
The Training Services Group ("TSG") will include the Company's new NASTAR Center, the aeromedical and entertainment ("EnTCo") product lines, International Logistics Support, and ADMS, the Company's simulation unit.
The Control Systems Group ("CSG") will consist of the sterilizer, environmental, hyperbaric and parts and services businesses.
William F. Mitchell, ETC's President and CEO, will direct the TSG, although it is anticipated that a separate president, reporting to Mr. Mitchell, will be hired to run the ADMS unit in Orlando, Florida. Tom Loughlin, currently ETC's Chief Operating Officer, will assume the role of President of CSG. Continuing in their current roles will be Dick Leland, President of NASTAR Center, and Rob Lloyd, President of EnTCo.
The Company plans to create separate legal entities for some of the operating groups, all of which will be wholly owned subsidiaries of ETC. ETC-PZL, the Company's 95% owned subsidiary in Poland, and ETC Europe, the Company's 99% owned subsidiary in England, will continue as currently structured. It is anticipated that the re-organization will be in place by the end of ETC's first fiscal quarter.
Additionally, in an effort to determine and unlock enterprise value and technology which ETC has developed over the past 35 years, the Company plans to engage a major Philadelphia-based valuation firm to appraise ETC's intellectual assets including software. These assets have significant value which is not currently reflected on the Company's balance sheet.
William F. Mitchell, ETC's President and Chairman, commented, "Global terrorism, international conflicts and overall general economic conditions have caused a major shift in training, products and services procurement. Focusing ETC's many product offerings into two groups and strengthening executive management within each group will allow each business unit to maximize their individual core competencies. I look forward in 2007 to a rededication of your Company's efforts at all levels."
FOR MORE INFORMATION ON ETC CONTACT:
Duane D. Deaner,
CFO of Environmental Tectonics,
Tel: 215-355-9100, ext.1203
Fax: 215-357-4000
