ESP Signs Contract with Sri Lankan Government to Build and Operate Nation's First Vehicle Inspection Program

EAST GRANBY, Conn.--Aug. 11, 2005--The Government of Sri Lanka's Department of Motor Traffic (DMT) took a major step toward improving air quality when it signed a five-year contract with Environmental Systems Products (ESP) today to design, construct and operate the nation's first Vehicle Emissions Testing (VET) Program. ESP is the world's leading vehicle inspection company.

ESP was the number one ranked testing company among nine firms that bid for the project. Like many nations across Asia, Sri Lanka is struggling with severe air pollution from motor vehicles. ESP will build and operate a network of 15 vehicle inspection stations and up to 12 mobile testing units to identify vehicles that are polluting the air. The 45 lane program will use Two Speed Idle and Diesel Snap Acceleration tests to inspect motor vehicle emissions. When polluting vehicles are repaired, their harmful emissions drop significantly - and public health improves.

"ESP is providing Sri Lanka with a vehicle inspection solution that is proven, accurate, reliable and cost-effective. The company is designing and building modern, high-volume inspection centers that will give motorists a quick and convenient emissions test," said Jeff Vogt, ESP Senior Vice President of International Development.

The Sri Lankan VET was originally scheduled to be introduced in 2005. But the program was put on hold as the nation recovered from the devastating tsunamis last December. In partnership with the Sri Lankan Government, ESP will roll out the annual inspection program in May 20, 200506. The company will operate half of the nationwide centralized program. Interested in having two separate program operators, the Government also selected Laugfs Lanka Gas Ltd, a local firm, to build and operate the other half of Sri Lanka's VET. ESP has established a strong, cooperative relationship with Laugfs Lanka Gas and will provide the company with data management software and technical assistance.

"We are committed to delivering and operating a world-class vehicle inspection program for the Government and people of Sri Lanka - a program of the highest quality and service standards, greatest convenience and best value," said John Ruth, ESP President. "We believe the Sri Lanka VET Program can serve as a shining example in the South Asia region as other jurisdictions consider similar inspection programs to improve air quality."

Beginning in the late spring of 2006, motor vehicles of all types, including motorcycles and three-wheelers will have to pass an annual emissions test before their license can be renewed. Urgent environmental and health concerns are driving the move to emissions testing. Much of Asia, including Sri Lanka, suffers from poor air quality due to harmful tailpipe emissions. Motor vehicles are a leading source of smog-forming pollution, poisonous carbon monoxide and cancer-causing air toxics. Sri Lankan officials are taking a leadership position by aggressively combating vehicle pollution and improving air quality for millions of people in the region.

"ESP is bringing its global resources to Sri Lanka, to ensure a smooth and seamless start-up of this crucial program," said Ruth. "We're committed to making the Sri Lankan VET a model for nations across Asia."

ESP is designing a flexible program that allows the government to meet the changing demands of a rapidly growing vehicle population. The program will be centered in the Western Province/Colombo Metro Area of Sri Lanka, where 70% of the vehicles are located. A combination of mobile units and centralized stations will serve the remaining vehicle population.

Based in the United States, ESP is one of the world's largest vehicle inspection technology and services provider. The company has designed and implemented VET programs in more than 20 jurisdictions in its 25 year history, and has deployed its emissions and safety testing inspection technologies in Asia, the Middle East, South America and throughout North America. ESP has more than 3,200 employees exclusively devoted to the vehicle inspection industry, and tests more than 27 million vehicles annually between its centralized and decentralized test lanes.