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NEW YORK SELECTS ENVIROTEST FOR LARGEST AUTO EMISSIONS TESTING CONTRACT TO DATE IN THE INDUSTRY

 ENVIROTEST SELECTED AS CONTRACTOR FOR NEW YORK DOWNSTATE REGION,
 INCLUDING NEW YORK CITY


CONTRACT FOR SEVEN YEARS; TO GENERATE ANNUAL REVENUES OF $77 MILLION
 AND AN ANNUAL BACKLOG OF $475 MILLION ENVIROTEST REVENUES TO INCREASE MORE THAN 2-1/2 TIMES TO $225 MILLION;


BACKLOG TO MORE THAN TRIPLE TO $1.2 BILLION AS A RESULT OF COMPANY'S
 SELECTION BY NEW YORK AND RECENT SELECTION BY PENNSYLVANIA
 COMPANY EARNINGS POTENTIAL SIGNIFICANTLY ENHANCED
 TUCSON, Ariz., Nov. 5 /PRNewswire/ -- Envirotest Systems Corp. (NASDAQ: ENVI) today announced that New York has selected Envirotest to be awarded the state's largest auto emissions testing contract, covering New York's downstate region, including New York City. As a result of this contract, which will generate annual revenues of $77 million and total backlog of $475 million, and Pennsylvania's recent selection of Envirotest for its approximately $60 million annual revenue, $400 million annual backlog contract, Envirotest's annual revenues will increase more than 2-1/2 times to $225 million from approximately $90 million, and the company's backlog, currently at about $300 million, will grow to $1.2 billion.
 The New York downstate region contract represents the largest award to date in the industry and follows on the heels of Pennsylvania's selection of Envirotest for what previously had been the largest contract. It covers the auto emissions vehicle testing for New York City, Suffolk, Nassau, Westchester, Rockland, Dutchess, Orange and Putnam counties. According to the State Department of Motor Vehicles, proposals for the upstate regions are still being evaluated.
 Chester Davenport, chairman of Envirotest, stated, "We are very excited about being selected for the New York downstate region award right on the heels of our win in Pennsylvania. The selection of Envirotest for these contracts significantly enhances the company's earnings potential, size and market presence. They further build Envirotest's position and reputation as the industry leader."
 Thomas Jorling, Commissioner of Environmental Conservation, said, "The process which led to the selection of this firm was thorough, and Envirotest came out as the one with the technical and financial expertise and experience to make this program work. These are essential elements to ensuring a smooth, efficient and cost-effective operation."
 Mr. Davenport added, "The New York downstate region contract is important not only because of its financial size but also because it underlines the strength of our expertise. In making its selection, New York State wanted a contractor with proven operating experience who could handle a program that covers a diverse marketplace involving one of the largest urban areas in the world, highly populated suburbs, and less-populated areas. We are pleased that we have been selected to help the New York downstate region clean up its air in a cost effective, convenient, and customer friendly way. Our program will create approximately 900 new jobs in the New York downstate region and, in turn, contribute to the economic development of the area."
 The New York downstate region contract is for a period of seven years with the programs under the contract for Putnam, Dutchess and Orange counties beginning Jan. 1, 1995. New York City and the remaining downstate counties will commence Jan. 1, 1996. When the entire contract is under full operation, approximately 3.7 million paid tests are expected to be performed per annum.
 Envirotest stated that contract negotiations with the state would begin immediately.
 Envirotest Systems Corp. is the leading provider of centralized vehicle emissions testing programs for states and municipalities. In addition, Envirotest is the only domestic provider of contractor- operated centralized testing services outside the United States.
 -0- 11/5/93
 /CONTACT: Robert D. Siegfried or Karen Rubin of Kekst and Company, 212-593-2655/
 (ENVI)


CO: Envirotest Systems Corp. ST: Arizona, New York IN: AUT SU: CON

GK -- NY037 -- 1223 11/05/93 12:14 EST
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Copyright 1993 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Nov 5, 1993
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