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Envirotest: EPA Moves to Enable Commercialization of Remote Sensing Technology

12 May 1998

Envirotest Says EPA Takes Important Step to Enable Commercialization of Company's Remote Sensing Technology in 1998

 Remote Sensing Has Potential to Substantially Add to Envirotest's Long Term
                Growth Potential in Vehicle Emissions Testing

 Envirotest Sees Financial Performance Momentum Continuing in Second Half of
                                 Fiscal 1998

          Company Reaffirms it Will Explore Possible Sale or Merger
    BETHESDA, Md., May 12 -- "The EPA has taken another important
step which should lead to Envirotest Systems Corp.'s (Amex: ENR) beginning
commercialization of its proprietary, cutting-edge, Remote Sensing Technology
this year, possibly as early as this summer.  By commercializing Remote
Sensing, which is  a consumer-friendly and non-obtrusive vehicle emissions
testing process that would provide many vehicle owners with an alternative to
taking their vehicles to vehicle emissions testing stations, Envirotest would
be in a position to substantially expand its vehicle emissions testing
business and revenue potential," Chester Davenport, Chairman, today announced
here at the company's Annual Meeting of Shareholders.
    "Specifically," Mr. Davenport stated, "The EPA this past Friday issued
draft guidelines detailing how states can use Envirotest's Remote Sensing to
identify clean emissions vehicles and exempt such vehicles from their next
regularly scheduled emissions inspection.  The EPA estimates that up to
50% of vehicles can be tested through Clean-Screening, which utilizes Remote
Sensing.  Moreover, the EPA guidelines advise states how Clean-Screening can
be incorporated into their existing or planned vehicle emissions testing
programs and be approved by EPA.  The EPA has indicated that its final
guidance to states can be expected this fall.
    "We are very optimistic about the potential of Remote Sensing.  We have
pilot tests underway domestically in New York City and internationally in
Taiwan.  Furthermore, Colorado, where Envirotest conducts that state's vehicle
emissions testing, has just recently passed legislation, which has been sent
to the Governor for signature, authorizing the use of Clean-Screening as an
appropriate vehicle emissions testing process.  Our ability to use Remote
Sensing in Colorado will be in addition to our existing centralized vehicle
emissions testing operation.
    "There is no doubt that there is tremendous upside in Remote Sensing for
Envirotest.  It is a highly attractive, very cost effective tool for this
company to use to expand and grow its presence in the enormous $800 million
decentralized testing market in the U.S., a market which is approximately
three times the size of the centralized vehicle emissions testing market in
which Envirotest already has a 70% market share.  It also is a way for us to
expand into international markets where clean air and vehicle emissions
testing are becoming priorities.
    "Envirotest's potential in vehicle emissions testing, both domestically
and internationally, we believe, is very attractive.  With our company now
having in place a sound organization, both operationally and financially; with
our momentum in both profits and revenues continuing; with our leadership
position in the growing business of vehicle emissions testing; and with our
potential to expand into ancillary businesses, as a result, Envirotest's Board
has determined that it is in both the business and shareholders best interests
to explore all strategic alternatives so to assure the company's business
structure is most appropriate for the long term.  Accordingly, Envirotest has
retained Credit Suisse First Boston to assist in this effort, which could
include a sale or merger of Envirotest.  The priority of the Board in
determining the appropriate course of action will be to enhance Envirotest's
business potential, and at the same time, assure maximum value to
shareholders.  With this in mind, Envirotest's results continue strong in its
third fiscal quarter which will end on June 30 and, we are confident that our
profit and revenues momentum will continue to build through the second-half of
this fiscal year," Mr.Davenport said.
    Envirotest Systems Corp. is the largest provider of vehicle inspection
services in the country and the only domestic company that provides vehicle
inspection services outside the United States.

    This press release contains statements that are forward-looking statements
within the meaning of Section 21E of the Securities Exchange Act of 1934,
which represent the Company's expectations or beliefs concerning future
events.  The Company cautions that these statements are further qualified by
important factors that could cause actual results to differ materially from
those in the forward-looking statements.  A number of such factors are set
forth in the Company's filings with the Securities and Exchange Commission,
including the Company's Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q.

SOURCE  Envirotest Systems Corp.