Phase Seven Labs Gets Acquired

CALABASAS, Calif. -- National Technical Systems, Inc. (NASDAQ:NTSC)(NTS), a leading provider of quality and conformance testing and management services for industries, including aerospace, defense, telecommunications and information technology, is pleased to announce the acquisition of Phase Seven Laboratories. Phase Seven, located in Santa Rosa, CA, is a one-of-a-kind, state-of-the-art facility that provides carrier-class network interoperability, functionality and performance testing for new and emerging technologies and their integration to legacy systems.

"Phase Seven Laboratories is a unique laboratory with capabilities in the Telecommunication Services industry which we feel completes our technology development strategy," stated Jack Lin, CEO of National Technical Systems. "We believe the integration of Phase Seven Laboratories into the NTS organization now positions NTS as a major leader in NEBS testing of central office equipment as well as passive fiber optical components."

NTS can now offer high quality service for carrier class products by simulating Interoperability testing for central office access equipment and Consumer Premise Equipment (CPE). This will include complete end-to-end functional compliance testing of wireline and fiber optics technologies for ADSL, ADSL2/2+ and fiber to the home networks with data, voice, and video. "The acquisition of Phase Seven Laboratories aligns with our strategic initiatives of providing innovative solutions to telecommunications high technology equipment manufacturers," stated William C McGinnis, President and COO of National Technical Systems. "We have plans to expand Phase Seven's current laboratory interoperability technology by adding carrier class soft switches and network access devices to their existing legacy architecture. This addition will bridge the gap of proving interoperability with current legacy networks and next generation networks supporting SIP VoIP, Video over DSL, B-PON, and G-PON high speed FTTH technologies."

"This acquisition is truly one where one plus one equals three," stated Curt Wheeling, President of Phase Seven Laboratories. "With the addition of Phase Seven, NTS is the only third party independent laboratory that can offer all the services and testing that the telecommunications and broadband industries require."

NTS/Phase Seven will be a new and innovative provider dedicated to open, state-of-the-art carrier-class interoperability testing to the voice, data and video industries. NTS/Phase Seven is entering an exciting phase of innovation and change in the telecommunications technology and NTS/Phase Seven will provide the test services to verify that these new architectures will seamlessly interoperate with the world's communication infrastructure.