ETC announces the sale of ETC-PZL Aerospace Industries, its wholly owned Polish subsidiary

Environmental Tectonics Corporation (ETC) today announced that it has completed the sale of 100% of the equity interests of its wholly owned Polish subsidiary, ETC-PZL Aerospace Industries sp.z o.o. ("ETC-PZL) to Fabryka Artykułów Turystycznych i Sportowych Polsport sp. z o.o., a limited liability company incorporated under the laws of the Republic of Poland.

The transaction is part of the Company's ongoing efforts to focus its resources on its core businesses and strategically align its operations with its long term objectives. The Company expects the transaction to have a positive impact on its ongoing consolidated financial results.

ETC and ETC-PZL entered into a separate 10-year Cooperation Agreement under which ETC-PZL will serve as a preferred supplier to the Company for certain products manufactured by ETC-PZL. Under the agreement, the Company retains the ability to manufacture the applicable products internally if the parties are unable to reach mutually acceptable commercial terms, if ETC-PZL is unable to meet the Company's supply requirements or if ETC-PZL is unable to supply based on certain applicable regulatory requirements.

Robert L. Laurent, Jr., ETC's Chief Executive Officer and President stated, "I look forward to continuing the longstanding strategic partnership with ETC-PZL. This transaction provides ETC a meaningful opportunity to improve operating results while maintaining continuity of supply and the flexibility to manufacture products internally."