ETC Announces Review of Strategic Alternatives

For Immediate Release

SOUTHAMPTON, PA, USA, September 25, 2017 - Environmental Tectonics Corporation (OTC Pink: ETCC) ("ETC" or the "Company"), an environmental simulation company that provides state-of-the-art training equipment (including motion-based virtual reality and augmented reality simulators), emergency response training simulators, and commercial equipment for the automotive, HVAC, health care, and medical device industries, today announced that it has commenced a process to explore and evaluate potential strategic alternatives for the Company.

Dr. George K. Anderson, Chairman of ETC's Board of Directors, stated that "the Board is encouraged by the Company's recent performance and in keeping with our commitment to act in the best interests of all shareholders we believe at this time that it is prudent to explore strategic alternatives to determine the best opportunities for enhancing shareholder value.  During this process the Board is committed to supporting the Company's management and employees in their ongoing efforts to deliver its best in class aerospace and commercial industrial products to our valued customers."

Robert L. Laurent, Jr., ETC's President and CEO, stated that "as the Company undertakes this exploration process, we are focused on the execution of our business strategy and remain fully committed to serving our customers' needs."

ETC's Board has established a special Committee to explore and evaluate strategic alternatives. Potential strategic alternatives that may be explored or evaluated as part of this process include, among other possible alternatives, the potential for an acquisition, merger, business combination, or other strategic transaction involving the Company.  There can be no assurance that the process described above will result in the consummation of any transaction or, if a transaction is undertaken, as to its terms, structure or timing.

Stout Risius Ross Advisors, LLC is acting as financial advisor to the Company.  Morgan, Lewis & Bockius LLP is acting as legal advisor.

ETC does not expect to disclose further developments during this process unless and until the Company's Board of Directors has approved a specific transaction or otherwise determined that disclosure is appropriate.

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About ETC

ETC was incorporated in 1969 in Pennsylvania.  For over four decades, we have provided our customers with products, services, and support.  Innovation, continuous technological improvement and enhancement, and product quality are core values that are critical to our success.  We are a significant supplier and innovator in the following areas: (i) software driven products and services used to create and monitor the physiological effects of flight, including high performance jet tactical flight simulation, upset recovery and spatial disorientation, and both suborbital and orbital commercial human spaceflight, collectively, Aircrew Training Systems ("ATS"); (ii) altitude (hypobaric) chambers; (iii) hyperbaric chambers for multiple persons (multiplace chambers); (iv) Advanced Disaster Management Simulators ("ADMS"); (v) steam and gas (ethylene oxide) sterilizers; (vi) environmental testing and simulation devices; and (vii) hyperbaric (100% oxygen) chambers for one person (monoplace chambers).

We operate in two primary business segments, Aerospace Solutions ("Aerospace") and Commercial/ Industrial Systems ("CIS").  Aerospace encompasses the design, manufacture, and sale of: (i) ATS products; (ii) altitude (hypobaric) chambers; (iii) hyperbaric chambers for multiple persons (multiplace chambers); and (iv) ADMS, as well as integrated logistics support ("ILS") for customers who purchase these products or similar products manufactured by other parties.  These products and services provide customers with an offering of comprehensive solutions for improved readiness and reduced operational costs.  Sales of our Aerospace products are made principally to U.S. and foreign government agencies and to civil aviation organizations.  CIS encompasses the design, manufacture, and sale of: (i) steam and gas (ethylene oxide) sterilizers; (ii) environmental testing and simulation devices; and (iii) hyperbaric (100% oxygen) chambers for one person (monoplace chambers), as well as parts and service support for customers who purchase these products or similar products manufactured by other parties.  Sales of our CIS products are made principally to the healthcare, pharmaceutical, and automotive industries.

We presently have one operating subsidiary, ETC-PZL Aerospace Industries Sp. z o.o. ("ETC-PZL"), our 95% owned subsidiary in Warsaw, Poland that manufactures certain simulators and provides software to support products manufactured domestically within our Aerospace segment.  Environmental Tectonics Corporation (Europe) Limited ("ETC-Europe"), our formerly 99%-owned subsidiary, which was officially dissolved on August 15, 2017, functioned as a sales office in the United Kingdom.

ETC's unique ability to offer complete systems, designed and produced to high technical standards, sets it apart from its competition.  ETC is headquartered in Southampton, PA.  For more information about ETC, visit http://www.etcusa.com/.

Forward-looking Statements

This news release contains forward-looking statements, which are based on management's expectations and are subject to uncertainties and changes in circumstances.  Words and expressions reflecting something other than historical fact are intended to identify forward-looking statements, and these statements may include words such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "future", "predict", "potential", "intend", or "continue", and similar expressions.  We base our forward-looking statements on our current expectations and projections about future events or future financial performance.  Our forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about ETC and its subsidiaries that may cause actual results to be materially different from any future results implied by these forward-looking statements.  We caution you not to place undue reliance on these forward-looking statements.