National Technical Systems to Operate McClellan Air Force Base Testing Facility; Provide Testing Services to Air Force.

CALABASAS, Calif.--(BUSINESS WIRE)--Nov. 25, 1997--

Includes $2 Million Backlog, $10.5 Million Maximum Potential

National Technical Systems Inc. (NASDAQ:NTSC) Tuesday announced that it has signed a contract with the U.S. Air Force to take over and operate the Science and Engineering test laboratory facilities at McClellan Air Force Base in Sacramento and to provide the Air Force with testing services from those facilities.

NTS is the first major company to take over and operate a McClellan facility. In addition to broadening the company's test and evaluation resources, the contract includes a backlog of approximately $2 million in aircraft related test and evaluation work.

The contract, an open ended Air Force IDIQ contract (Indefinite Delivery, Indefinite Quantity), is effective through April 1999 and has a maximum potential revenue value of $10.5 million in NTS testing and evaluation services that could be provided to the Air Force and other government agencies.

Instead of closing McClellan Air Force Base by the Year 2001, as originally planned, the Air Force, in the very near future, will turn the property and facilities at the Base over the Sacramento County. NTS is currently negotiating an agreement with Sacramento County to take over and lease the Science and Engineering test laboratory facilities on a permanent basis following its transfer to the County by the Air Force.

Once the agreement with the County for the test laboratory facilities is executed, NTS will be free to provide test and evaluation services to commercial organizations as well as government agencies, greatly expanding the potential revenue the company could derive from the facilities.

According to NTS President and Chief Executive Officer Jack Lin, these facilities contain one of the best analytical laboratories in the world, with unique and specialized facilities to analyze materials and processes related to aircraft. The laboratories have been used for maintenance analysis, new process development and accident investigation. Looking ahead, NTS intends to bring substantial future commercial work to these laboratories and will look to negotiate further contracts with the government.

Lin said that the Air Force contract "is a key expansion for NTS and positions us to perform even larger programs. Furthermore, due to our experience and expertise in privatizing government facilities, we are well positioned to take over additional McClellan facilities, as well as to capitalize on other privatization opportunities in the future. Additionally, we are a logical choice to team with other firms that will operate the remaining facilities at McClellan."

Lin continued: "Our stature as a privatization expert enabled us to be awarded the McClellan contract on a sole-source basis. While the operation will start with a 20-person cadre, at its peak, the laboratory's staff was 100 persons, so the potential for growth remains strong. Jim Freeman, one of our senior managers, will lead the McClellan operation. Jim is the logical choice to run the McClellan facility since he came to NTS after a 35 year career in the Air Force operating facilities for the Air Force."

Freeman commented: "Not only does this create a new opportunity for us to provide testing and evaluation services for the Air Force, it also allows us the opening to expand our work for the Air Force into existing NTS areas, such as temporary high tech information technology personnel and ISO audits and registration."

Lin added: "This is another example of our unique ability to privatize laboratory and testing facilities scheduled for downsizing or elimination and turn them into successful commercial operations. In the past, we have been able to significantly reduce the operating costs of a facility while increasing its profitability, compared to when it was government-run.

"In 1993," Lin continued, "we established an artillery firing range in Camden, AR in partnership with Olin Industries (now Primex). We were able to operate the range for testing and evaluation purposes for Primex at a substantial saving to them, which in turn generated additional profits for NTS. We also recently privatized a Department of Energy test laboratory in Largo, Fla. which was scheduled to be closed and in just a few months, created another profit center for NTS.

"All these privatization endeavors have the added benefit of providing employment in local areas, thus saving jobs that would have been lost had the downsizing or shutdowns continued as scheduled," concluded Lin.

National Technical Systems is a premier diversified technology services company with business in technical services (engineering and testing), technical staffing and registration services. -0-

The statements in this news release that relate to future plans, events or performance, are forward-looking statements that involve risks and uncertainties, including risks associated with uncertainties pertaining to operating new facilities, customer orders, demand for products and services, development of markets for the company's products and services and other risks identified in the company's SEC filings. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

CONTACT: Allen & Caron Inc.

Damon Wright (investors)

Owen Daley (media)

714/252-8440

or

National Technical Systems

Lloyd Blonder

818/591-0776