United Technologies Corporation Awards Preferred Vendor Agreement to National Technical Systems for Environmental and Structural Testing Services


CALABASAS, Calif.--(BUSINESS WIRE)--Dec. 7, 2004--National Technical Systems, Inc. (Nasdaq:NTSC) (NTS), a leading provider of quality and conformance testing and managed services, announced that it has been awarded an additional two-year preferred vendor agreement with Hartford, CT-based United Technologies Corporation (NYSE:UTX) (UTC) covering testing requirements in the environmental and structural areas. The agreement runs through July 2006.

UTC recognized a savings of nearly $135,000 as a result of the initial preferred vendor agreement established with NTS in April of 2003. During the contract period, NTS provided nearly $2M in testing services, up from $700K the previous year. A $31 billion diversified corporation providing high technology products for the aerospace and building systems industries throughout the world, UTC uses the preferred vendor program to reduce vendor count while gaining improved service and significant cost savings. Under the program, NTS benefits from the automatic inclusion in the competitive bidding for any UTC outsourced testing requirements in the environmental and structural fields. Having test labs throughout the U.S. and overseas, NTS offers a full range of services with the flexible volume capacity often required in the product qualification process.

"This program reflects the core of the NTS philosophy," NTS President and COO William C. McGinnis commented. "Deliver cost-effective compliance services to the customer allowing them to focus on their core business."

NTS has established strategic partnerships with a number of government agencies and corporations providing engineering, testing, test witnessing, and certification services. Among its agreements, NTS currently operates at the Siemens Laboratory in Munich, Germany and the Hewlett Packard EMI Laboratory in San Diego. In several instances, NTS has operated customer laboratory facilities and accepted outside test programs creating a profit center from what was previously an overhead cost.

Under the agreement, NTS provides a wide range of testing including dynamic, static, climatic and hybrid environments to meet the broad range of compliance tests required to bring UTC products to market, including temperature and humidity, mechanical vibration and shock, electromagnetic interference and structural load testing.

UTC business units are Carrier, Hamilton Sundstrand, Otis, Pratt & Whitney, Sikorsky, Chubb Security and UTC Power, all supported by the United Technologies Research Center.

About NTS

National Technical Systems, Inc. is a business-to-business services company providing organizations in the aerospace, defense, information technology (IT) and high technology markets integrated testing, certification, quality registration, systems evaluation and engineering solutions. For additional information about National Technical Systems, visit its web site at www.ntscorp.com.

The statements in this press release that relate to future plans, events or performance, are forward-looking statements that involve risks and uncertainties, including risks associated with uncertainties pertaining to customer orders, demand for services and products, development of markets for the companies\' services and products and other risks identified in the companies\' SEC filings. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The companies undertake no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding National Technical Systems\' business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company\'s Annual Report or Form 10-K for the most recently ended fiscal year.

    CONTACT: National Technical Systems
Lloyd Blonder, 818-591-0776
or
BPC Financial Marketing
John Baldissera, 800-368-1217

SOURCE: National Technical Systems, Inc.