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ENVIRONMENTAL TECTONICS CORPORATION REPORTS SETTLEMENT ON CLAIMS UNDER GOVERNMENT STERILIZER CONTRACT

 SOUTHAMPTON, Pa., Feb. 1 /PRNewswire/ -- Environmental Tectonics Corporation (AMEX: ETC) announced today final settlement on claims stemming from a contract which was partially terminated for the benefit of the U.S. government.
 The Defense Personnel Support Center, Philadelphia, awarded a contract to the company in 1987 worth $13.2 million to manufacture more than 4,000 military field sterilizers. The company won this contract on a competitive bid basis, having built over 800 of the same sterilizers under previous contracts.
 In 1990, the company was notified by the Department of Defense that this contract was being scaled back under a partial "Termination for the Convenience of the Government" with the contracted units reduced from more than 4,000 to 611. This action required the company to file claims for the costs incurred, overhead and lost profit. The last of the 611 units was shipped in February 1991, with the final claims submitted in the fall of 1991.
 The final claims settlement totals $3,850,000, most of which will be used to reduce the company's bank loans which were incurred to carry the claims costs. The company said it expects to record a gain in its current fiscal fourth quarter as a result of this settlement of approximately $309,000 net of all costs, legal expense and adjustments. This will have a positive impact on earnings for this quarter of approximately $0.06 per share.
 ETC designs, manufactures and installs sterilization equipment, hyperbaric systems, aircrew training systems, environmental testing and simulation systems and related products for domestic and international customers. ETC is listed on the AMEX and traded under the stock symbol "ETC."
 /delval/
 -0- 2/1/93
 /CONTACT: John F. Schoenfelder, vp and CFO of Environmental Tectonics, 215-355-9100/
 (ETC)


CO: Environmental Tectonics Corporation; Department of Defense ST: Pennsylvania IN: SU: CON

MJ-LJ -- PH027 -- 1384 02/01/93 12:37 EST
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Publication:PR Newswire
Date:Feb 1, 1993
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