<PAGE>

                                    FORM 10-K
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

[x] Annual report pursuant to Section 13 or 15(d) of the Securities Exchange
             Act Of 1934 For the fiscal year ended February 23, 2001

                                       or

[ ] Transition report pursuant to Section 13 or 15(d) of the Securities
                     Exchange Act of 1934 [no fee required]

For the transition period from ____________ to ____________.

Commission File Number 1-10655

                       ENVIRONMENTAL TECTONICS CORPORATION
              ----------------------------------------------------
              (Exact name of small business issuer in its charter)


        Pennsylvania                              23-1714256
-------------------------------               -------------------
(State or other jurisdiction of                (I.R.S. Employer
incorporation or organization)                Identification No.)


      County Line Industrial Park
       Southampton, Pennsylvania                      18966
----------------------------------------           ----------
(Address of principal executive offices)           (Zip Code)

Issuer's telephone number, including area code (215) 355-9100

Securities registered pursuant to Section 12(b) of the Act:

                     Common Stock, par value $.05 per share
                     --------------------------------------
                                (Title of Class)

Securities registered pursuant to Section 12(g) of the Act: None

Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days.

                               Yes x            No
                                  ---             ---

Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-K is not contained herein, and will not be contained, to the best
of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K.[x]

As of May 21, 2001, the aggregate market value of the Registrant's common stock
held by non-affiliates of the Registrant was approximately $28,536,000. As of
May 21, 2001, there were 7,133,914 shares of Registrant's common stock, $0.05
par value per share, issued and outstanding.

DOCUMENTS INCORPORATED BY REFERENCE. Portions of Registrant's 2001 Annual Report
to Stockholders (the "Annual Report") are incorporated by reference in Part II,
Items 5, 6, 7, and 8. Portions of the Registrant's Proxy Statement to be used in
connection with its 2001 Annual Meeting of Shareholders is incorporated herein
by reference in Part III, Item II.
<PAGE>

                           FORWARD-LOOKING STATEMENTS

         Except for historical information, this report may be deemed to contain
"forward-looking" statements. The Company desires to avail itself of the Safe
Harbor provisions of the Private Securities Litigation Reform Act of 1995 (the
"Act") and is including this cautionary statement for the express purpose of
availing itself of the protection afforded by the Act.

         These forward-looking statements include statements with respect to the
Company's vision, mission, strategies, goals, beliefs, plans, objectives,
expectations, anticipations, estimates, intentions, financial condition, results
of operations, future performance and business of the Company, including but not
limited to, (i) projections of revenues, costs of raw materials, income or loss,
earnings or loss per share, capital expenditures, growth prospects, dividends,
the effect of currency fluctuations, capital structure and other financial
items, (ii) statements of plans and objectives of the Company or its management
or board of directors, including the introduction of new products, or estimates
or predictions of actions by customers, suppliers, competitors or regulating
authorities, (iii) statements of future economic performance, (iv) statements of
assumptions and other statements about the Company or its business, and (v)
statements preceded by, followed by or that include the words, "may," "could,"
"should," "pro forma," "looking forward," "would," "believe," "expect,"
"anticipate," "estimate," "intend," "plan," or similar expressions. These
forward-looking statements involve risks and uncertainties, which are subject to
change based on various important factors (some of which, in whole or in part,
are beyond the Company's control). The following factors, among others, could
cause the Company's financial performance to differ materially from the goals,
plans, objectives, intentions and expectations expressed in such forward-looking
statements: (1) the strength of the United States and global economies in
general and the strength of the regional and local economies in which the
Company conducts operations; (2) the effects of, and changes in, U.S. and
foreign governmental trade, monetary and fiscal policies and laws; (3) the
import of domestic or foreign military or political conflicts and turmoil; (4)
the timely development of competitive new products and services by the Company
and the acceptance of such products and services by customers; (5) willingness
of customers to substitute competitors' products and services and vice versa;
(6) the impact on operations of changes in U.S. and governmental laws and public
policy, including environmental regulations; (7) the level of export sales
impacted by export controls, changes in legal and regulatory requirements;
policy changes affecting the markets, changes in tax laws and tariffs, exchange
rate fluctuations, political and economic instability, and accounts receivable
collection; (8) technological changes; (9) regulatory or judicial proceedings;
(10) the impact of any current or future litigation involving the Company; and
(11) the success of the Company at managing the risks involved in the foregoing.

         The Company cautions that the foregoing list of important factors is
not exclusive. The Company does not undertake to update any forward-looking
statement, whether written or oral, that may be made from time to time by or on
behalf of the Company.

                                     PART I

Item 1.  Business

(a)      Business Development

         Environmental Tectonics Corporation ("ETC" or the "Company"), a
Pennsylvania corporation, incorporated in 1969, is principally engaged in the
design, manufacture and sale of software driven products used to A) create and
monitor the physiological effects of motion on humans and equipment and B)
control, modify, simulate and measure environmental conditions. These products
include aircrew training systems, entertainment products, sterilizers,
environmental and hyperbaric chambers, and other products, which involve similar
manufacturing techniques and engineering technologies.

         Since February 25, 2000, there has been no material change in the
Company's mode of conducting business.

(b)      Business of the Company

         The company operates in two primary business segments, Aircrew Training
Systems ("ATS") and Industrial Group.

         Aircrew Training Systems. This segment includes three primary product
groups.
<PAGE>

         The Company's aircrew training devices are used for medical research,
advanced flight training, and for the indoctrination and testing of military and
commercial pilots. The major devices sold in this product area are commercial
flight simulators, night vision trainers, water survival training equipment,
disorientation training equipment, human centrifuges, ejection seat trainers and
vehicle and tank simulators. The Company provides operation and maintenance
services for installed equipment it manufactures as well as equipment produced
by others.

         The Company's entertainment products consist of motion-based simulation
rides and other products.

         The Company's Disaster Management Systems line includes real-time
interactive training programs that allow instruction on various disaster
situations.

         The aircrew training system class of products as a whole represented
73%, 76% and 84% of consolidated revenues of the Company for the years ended
February 23, 2001, February 25,2000 and February 26, 1999, respectively.

         Industrial Group.  This segment includes three primary product lines:

         Sterilizers. The Company manufactures steam and gas sterilizers used
for various industrial and pharmaceutical applications. The Company concentrates
on marketing the larger custom-designed sterilizers to the pharmaceutical and
medical device industries.

         Environmental Systems and Other Products. The Company's environmental
systems business consists of the design and fabrication of sampling and analysis
systems, and test equipment and systems. The simulation systems generally
consist of an enclosed chamber with instrumentation and equipment which enable
the customer to control and modify such environmental factors as temperature,
pressure, humidity, wind velocity and gas content to produce desired conditions.
These products include controlled air systems for automotive companies and
environmental chambers
<PAGE>

         The Company's Hyperbaric line includes monoplace and multiplace
chambers for decompression and wound care applications.

         Sales in this class of products were 27%, 24% and 16% of consolidated
revenues of the Company for the years ended February 23,2001, February 25, 2000
and February 26, 1999, respectively.

         The Company also provides control operator repair and upgrades and
maintenance service for its own and other manufacturers' equipment.

Marketing

         The Company currently markets its products and services primarily
through its sales offices and employees. At February 23, 2001, approximately 20
employees were committed to sales and marketing functions. The Company uses
branch offices in the United Kingdom, the Middle East, and Asia as well as the
services of approximately 100 independent sales organizations in seeking foreign
orders for its products.

Product Development

         New products and improvements in existing products are being
continually developed in response to inquiries from customers and to
management's determination that particular products should be produced or
significantly improved. Although the Company does not have a separate research
and development group, there are a few technical personnel whose main activity
is the development and integration of new technologies into our existing
products. These personnel include the Vice-President of Engineering and the
Vice-President of New Product Development whose additional activity is the
introduction of product extensions and new applications of existing technology.

         Within the Aircrew Training Segment, product development emphasizes
enhancing control systems and software graphics and exploring commercial
possibilities. The Company's product development efforts will be focused on
three areas:

               -    Disaster Management Simulation. The Company is in production
                    of a major contract from the City of Chicago to develop,
                    install and maintain a computer-based Incident Command
                    Simulator. The company will continue to explore product
                    applications and extensions to this Intelligent Virtual
                    Reality product.

               -    G-force and Disorientation trainers. The Company is
                    introducing a new second generation General Aviation Trainer
                    (GAT II). Aimed at the commercial aviation market, the GAT
                    II simulates the cockpit controls, displays and flight
                    characteristics of general aviation private aircraft,
                    business aircraft and helicopters. The GAT II will integrate
                    portions of the "Pro-Pilot" flight simulation software game.

               -    Entertainment. The Company is evaluating product extensions
                    to motion based amusement rides.

         On April 16, 1999, the Company formed a new wholly owned subsidiary,
Entertainment Technology Corporation, to handle all of the Company's future
entertainment projects. Product development in this class will emphasize
entertainment applications of our proven ATS simulation technology.

         The Company reported research and development costs of $903,000,
$920,000 and $397,000 for the years ended February 23,2001, February 25, 2000
and February 26, 1999, respectively. However, most of the cost of the Company's
research efforts, which were and continue to be a significant cost of its
business, are included in cost of sales for applied research for specific
contracts, as well as research for feasibility and technology updates.
<PAGE>

Supplies

         The components being used in the assembly of systems and the parts used
to manufacture the Company's products are purchased from equipment
manufacturers, electronics supply firms and others. To date, the Company has had
no difficulty in obtaining supplies. Further, all raw materials, parts,
components, and other supplies used by the Company in the manufacture of its
products can be obtained at competitive prices from alternate sources should
existing sources of supply become unavailable.

Patents and Trademarks

         The Company has no patents or trademarks which it considers significant
to its operations, except a patent on the GYROLAB Spatial Disorientation
Trainer, which expires in December 2004.

Customers

         In the current year and recent past, it has been the Company's
experience that a substantial portion of sales are made to a small number of
customers that vary within any given year. The Company's business does not
depend upon repeat orders from these same customers. Sales of aircrew training
systems are made principally to U.S. and foreign governmental agencies. Sales of
sterilizers and environmental systems are made to commercial and governmental
entities worldwide.

         In fiscal 2001, the Company's major customers included the United
Kingdom Ministry of Defense representing $5,524,000 and the Walt Disney
companies, representing $8,400,000 of revenues, respectively. These companies do
not have any relationship with the Company other than as customers.

Foreign and Domestic Operations and Export Sales

         During the years ended February 23,2001, February 25, 2000 and February
26, 1999, approximately $916,000 (3%), $1,587,000 (5%) and $1,158,000 (4%),
respectively, of the Company's net revenues were attributable to contracts with
agencies of the U.S. Government or with other customers who had prime contracts
with agencies of the U.S. government.

         During the years ended February 23,2001, February 25, 2000 and February
26, 1999, $16,404,000 (51%), $23,907,000 (69%) and $22,876,000 (78%),
respectively, of the Company's net revenues were attributable to export sales or
sales for export. (See Note 11 to the Company's consolidated financial
statements incorporated herein by reference to the Annual Report.) On export
sales, customers' obligations to the Company are normally secured by irrevocable
letters of credit based on the credit worthiness of the customer.

         The Company does not believe that the distribution of its sales for any
particular period is necessarily indicative of the distribution expected for any
other period.

         A large portion of the Company's sales is under long-term contracts
requiring more than one year to complete. The Company accounts for sales under
long-term contracts on the percentage of completion basis. See Note 1 to
consolidated financial statements.

         The Company's U.S. Government contracts contain standard terms
permitting termination for the convenience of the Government. In the event of
termination of such contracts, the Company is entitled to receive reimbursement
on the basis of work completed (cost incurred plus a reasonable profit),
recording the amounts anticipated to be recovered from termination claims in
income as soon as those amounts can be reasonably determined rather than at the
time of final settlement. All costs applicable to a termination claim are
charged as an offsetting expense concurrently with the recognition of income
from the claim.
<PAGE>

Backlog

         The Company's sales backlog at February 23, 2001, and February 25,
2000, for work to be performed and revenue to be recognized under written
agreements after such dates was $40,439,000 and $44,146,000, respectively. In
addition, the Company's training and maintenance contracts backlog at February
23, 2001 and February 25, 2000, for work to be performed and revenue to be
recognized after that date under written agreements was approximately $1,347,000
and $1,288,000, respectively. Of the February 23,2001 backlog, approximately
$32,799,000 is under contracts for aircrew training systems and maintenance
support including $23,627,000 for the Walt Disney companies. Approximately 79%
of the February 23, 2001, backlog is expected to be completed prior to February
24, 2002.

Competition

         The Company's business strategy in recent years has been to seek niche
markets in which there are not numerous competitors. However, in some areas of
its business the Company competes with well-established firms, some of which
have substantially greater financial and personnel resources.

         Some competitor firms have technical expertise and production
capabilities in one or more of the areas involved in the design and production
of physiological flight training equipment, environmental systems, and other
specially designed products, and compete with the Company for this business. The
competition for any particular project generally is determined by the
technological requirements of the project, with consideration also being given
to a bidder's reliability, product performance, past performance, and price.

         The Company faces particularly intense competition from a number of
firms in the sale of hospital sterilizers but faces less competition in the sale
of the larger custom-designed industrial sterilizers.

         The Company believes that it is a significant participant in the
markets in which it competes, especially in aircrew training systems in which
the Company believes it is a principal provider of this type of equipment and
training in its market area.

Compliance with Environmental Laws

         The Company has not incurred during fiscal 2001 nor does it anticipate
incurring during fiscal 2002 any material capital expenditures to maintain
compliance with Federal, state and local statutes, rules and regulations
concerning the discharge of materials into the environment, nor does the Company
anticipate that compliance with these provisions will have a material adverse
effect on its earnings or competitive position.

Employees

         On February 23, 2001, the Company had 307 full-time employees, of whom
6 were employed in executive positions, 88 were engineers, engineering
designers, or draftspeople, 56 were administrative (sales, accounting, etc.) and
clerical personnel, and 137 were engaged principally in production and
operations.


<PAGE>

Item 2.  Property

         The Company owns its executive offices and principal production
facilities located on a 5-acre site in the County Line Industrial Park,
Southampton, Pennsylvania in an approximately 100,000 square foot steel and
masonry building. Approximately 85,000 square feet are devoted to manufacturing,
and 15,000 square feet to office space. The original building was erected in
1969 and additions were made in 1973, 1976, 1985, 1991 and 2000. This property
serves as collateral for the Company's revolving credit facility. Additionally,
the Company rents office space at various sales and support locations throughout
the world and at its Polish subsidiary.

         The Company considers its machinery and plant to be in satisfactory
operating condition. Increases in the level of operations beyond that expected
in the current fiscal year might require the Company to obtain additional
facilities and equipment.

Item 3.  Legal Proceedings

         Certain claims, suits and complaints arising in the ordinary course of
business have been filed or are pending against the Company. In the opinion of
management, all such matters are reserved for or are adequately covered by
insurance or, if not so covered, are without merit or are of such kind, or
involve such amounts as would not have a material adverse effect on the
financial position of the Company if resolved unfavorably.

Item 4. Submission of Matters to a Vote of Security Holders

         None.
<PAGE>

                                     PART II

Item 5.  Market for the Registrant's Common Stock and Related Security Holder
         Matters

         See information appearing under the heading "Market for the
Registrant's Common Stock and Related Stockholder Matters" in the Annual Report
attached hereto as Exhibit 13 and incorporated herein by reference.

Item 6.  Selected Financial Data

         See information appearing under the heading "Financial Review" in the
Annual Report attached hereto as Exhibit 13 and incorporated herein by
reference.

Item 7.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations

         See information appearing under the heading "Management's Discussion
and Analysis of Financial Condition and Results of Operations" in the Annual
Report attached hereto as Exhibit 13 and incorporated herein by reference.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

         Not applicable.

Item 8.  Financial Statements

         See the information appearing under the headings "Consolidated
Financial Statements" and "Notes to Consolidated Financial Statements" in the
Annual Report attached hereto as Exhibit 13 and incorporated herein by
reference.

Item 9.  Changes in and Disagreements with Accountants on Accounting and
         Financial Disclosure

         Not applicable.
<PAGE>

                                    PART III

Item 10. Directors and Executive Officers of the Registrant

         The following table sets forth certain information with respect to the
directors and executive officers of the Registrant:

                                         Served
                                           as            Principal Occupations
                                         Director          and Positions and
                                        or Officer        Offices with the
Name                          Age        Since(1)             Company
----                          ---       ----------      ----------------------
William F. Mitchell(2)        59           1969         Chairman of the Board,
                                                        President and Director

Richard E. McAdams(3)         65           1985         Executive Vice President
                                                        and Director

Philip L. Wagner, Ph.D.(4)    64           1993         Director

Pete L. Stephens, M.D.(5)     63           1974         Director

David Lazar(6)                44           2000         Director

Duane D. Deaner(7)            53           1996         Chief Financial
                                                        Officer
--------------------
(1)  Directors serve one-year terms.

(2)  Mr. Mitchell has been Chairman of the Board, President and Chief Executive
     Officer of the Company since 1969, except for the period from January 24,
     1986 through January 24, 1987, when he was engaged principally in
     soliciting sales for the Company's products in the overseas markets.

(3)  Mr. McAdams has been with the Company since 1970. He became a Vice
     President in 1978 with responsibility for contract administration. Mr.
     McAdams became Executive Vice President of the Company in 1990.

(4)  Dr. Wagner is an organic chemist with over 30 years of diversified
     experience managing research and development and new business development
     at E.I. du Pont de Nemours & Company and thereafter founded Chadds Ford
     Technologies, Inc., a consulting firm. He is currently President of Chadds
     Ford Technologies, Inc.

(5)  Dr. Stephens has been a physician engaged in the private practice of
     medicine for 30 years.

(6)  Since February 1, 1993, Mr. Lazar has served as Managing Director of
     Berwind Financial, L.P., and since June 1999, co-head of Berwind's
     Investment Bank, specializing in investment banking services to both
     privately held and publicly-traded companies. He also heads the firm's
     Financial Services group. Prior to Berwind, Mr. Lazar served as President,
     Ryan, Beck & Co./Mid-Atlantic, a regional investment banking firm
     specializing in the financial services industry. Mr. Lazar holds an MBA
     from the College of William and Mary Graduate School of Business
     Administration and a B.S. from Duke University. He also serves as an
     advisory director of First Virtual, Inc., a Florida based internet company
     that provides financial services.

(7)  Mr. Deaner has served as Chief Financial Officer of the Company since
     January 1996. Mr. Deaner served as Vice President of Finance for Pennfield
     Precision Incorporated from September 1988 to December 1995.
<PAGE>

Committees of the Board of Directors

         During the year ended February 23, 2001, the Company had an Audit
Committee consisting of the following directors: Messrs. Lazar, Philip L.
Wagner and Dr. Pete L. Stephens. The independent outside directors also served
on the Company's Compensation Committee during the year ended February 23, 2001.
The Audit Committee is charged with reviewing and overseeing the Company's
financial systems and internal control procedures and conferring with the
Company's independent accountants with respect thereto. The Compensation
Committee is charged with reviewing the compensation and incentive plans of
officers and key personnel.

         During the year ended February 23, 2001, the Board of Directors held 2
meetings and the Audit Committee and Compensation Committee each held 1 meeting.
All members of the Board attended all of the meetings of the Board held while
they were members of the Board. All members of the Audit Committee and
Compensation Committee attended all meetings of the Committee held while they
were members thereof.

Compliance With Section 16(a) of the Exchange Act

         Section 16(a) of the Securities Exchange Act of 1934 requires the
Company's officers and directors, and persons who own more than ten percent of a
registered class of the Company's equity securities to file reports of ownership
and changes in ownership with the Securities and Exchange Commission ("SEC") and
the American Stock Exchange. Officers, directors and greater than ten percent
shareholders are required by SEC regulation to furnish the Company with copies
of all Section 16(a) Forms they file. The rules of the SEC regarding the filing
of such statement require that "late filings" of such statements be disclosed in
the Company's proxy statement.

         Based solely on its review of the copies of such forms received by it,
or written representations from certain reporting persons that no Forms 5 were
required for those persons, the Company believes that, during the fiscal year
ended February 25, 2000, its officers, directors and greater than ten percent
beneficial owners complied with all applicable filing requirements.

Item 11. Executive Compensation

         REMUNERATION OF DIRECTORS AND OFFICERS

         The following table sets forth compensation paid by the Company to the
Chief Executive Officer for services rendered during fiscal years
2001,2000,1999. There are no other executive officers whose total annual salary
and bonus exceeds $100,000. The footnotes to the table provide additional
information concerning the Company's compensation and benefit programs.

                           SUMMARY COMPENSATION TABLE

<TABLE>
<CAPTION>
                                                                               Annual Compensation
                                                                             Other
Name and                                                                     Annual        All Other
Principal                  Fiscal                                            Compen-        Compen-
Position                    Year        Salary($)        Bonus($)          sation($)(1)   sation($)(2)
---------                  ------       ---------        --------          ------------   ------------
<S>                         <C>          <C>          <C>                   <C>           <C>
William F. Mitchell,        2001         $225,000     $ 10,969(1)(4)           --           $4,000
President and Chief         2000          225,000     $ 12,023(1)(4)           --            3,876
Executive Officer           1999          207,085      126,563                 --            3,876
</TABLE>

(1)  The Company's executive officers receive certain perquisites. For fiscal
     years 2001, 2000 and 1999, the perquisites received by Mr. Mitchell did not
     exceed the lesser of $50,000 or 10% of his salary and bonus.

(2)  These amounts represent the Company's contribution to the Retirement
     Savings Plan.

Directors of the Company who are not officers of the Company are paid $600 for
Board of Directors meetings which they attend. Additional compensation is not
paid for committee meetings.
<PAGE>

Item 12. Security Ownership of Certain Beneficial Owners and Management

         The following table sets forth as of May 21, 2001, the number of shares
and percentage of the Company's Common Stock owned beneficially by each
director, each executive officer named in the Summary Compensation Table, and
each person holding, to the Company's knowledge, more than 5% of the outstanding
Common Stock. The table also sets forth the holdings of all directors and
executive officers as a group.

                                                Amount and
                                                Nature of          Percent
                                                Beneficial           of
Name and Address of Beneficial Owner            Ownership           Class
------------------------------------            ----------         -------

William F. Mitchell (1)                          1,752,998          24.6%
c/o Environmental Tectonics
  Corporation
County Line Industrial Park
Southampton, PA  18966

Pete L. Stephens, M.D. (2)                         675,800(3)        9.5%
31 Ribaut Drive
Hilton Head Island, SC  29926

Richard E. McAdams (2)                              38,992(4)           *
c/o Environmental Tectonics
  Corporation
County Line Industrial Park
Southampton, PA  18966

Philip L. Wagner, Ph.D. (2)                         12,000(5)           *
201 Sandfiddler East
P.O. Box 4603
Emerald Isle, NC  28594

David P. Lazar(2)                                        0              *
C/o Berwind Financial, L.P.
3000 Centre Square West
1500 Market Street
Philadelphia, PA  19102

FINOVA Mezzanine Capital                           832,800(6)       11.2%
500 Church Street, Suite 200
Nashville, TN 37219

Emerald Advisors, Inc.                           1,051,513(7)       14.7%
1857 William Penn Way
P.O. Box 10666
Lancaster, PA 17605-0666

All directors, and executive
officers as a group (6 persons)                  2,483,540(8)       34.7%

* less than 1%
--------------------
(1)  Chairman of the Board, President and Director of the Corporation. Shares of
     Common Stock include 192,000 shares held by Mr. Mitchell's wife.

(2)  Director of the Corporation.

(3)  Includes 25,500 shares held by or for the benefit of Dr. Stephens' wife and
     two of his children.

(4)  Includes options to purchase 21,250 shares of Common Stock held under the
     Company's Incentive Stock Option Plan which are presently exercisable.

(5)  Includes 8,000 shares of Common Stock held by or for the benefit of Dr.
     Wagner's wife.

(6)  These shares include 332,820 shares of Common Stock underlying a presently
     exercisable warrant to purchase shares of Common Stock.

(7)  As reported in a Schedule 13G, dated December 31,2000, filed by Emerald
     Advisors, Inc., Emerald has sole voting power with respect to 743,273
     shares of Common Stock and sole dispositive power over 308,240 shares of
     Common Stock.

(8)  Includes options to purchase 21,250 and 3,750 shares of Common Stock which
     may be acquired by Director McAdams and Duane Deaner, Chief Financial
     Officer, respectively, upon the exercise of options granted under the
     Company's Incentive Stock Option Plan.
<PAGE>

Item 13. Certain Relationships and Related Transactions

         None

Item 14. Exhibits and Reports on Form 8-K

         (a) Exhibits:

Number    Item
------    ----

  3.1     Registrant's Articles of Incorporation, as amended, were filed as
          Exhibit 3.1. to Registrant's Form 10-K for the year ended February 28,
          1997 and are incorporated herein by reference.

  3.2     Registrant's By-Laws, as amended, were filed as Exhibit 3(ii) to
          Registrant's Form 10-K for the year ended February 25, 1994 and are
          incorporated herein by reference.

  4.1     12% Subordinated Debenture due March 27, 2004 was filed as Exhibit 4.1
          to Registrant's Form 10-K for the year ended February 28, 1997 and is
          incorporated herein by reference.

 10.1     Registrant's 1988 Incentive Stock Option Plan was filed as Exhibit
          10(v) to Registrant's Form 10-K for the year ended February 23, 1990
          and is incorporated herein by reference.*

 10.2     Registrant's Employee Stock Purchase Plan was filed on July 6, 1988 as
          Exhibit A to the Prospectus included in Registrant's Registration
          Statement (File No. 33-42219) on Form S-8 and is incorporated herein
          by reference.*

 10.3     Registrant's Stock Award Plan adopted April 7, 1993, filed as Exhibit
          10(ix) to the Registrant's Form 10-K for the fiscal year ended
          February 25, 1994 and is incorporated herein by reference.*

 10.4     Form of 1996 Warrant Agreement between the Registrant and Chase
          Manhattan Capital Corporation, filed as Exhibit 10(xiv) to the
          Registrant's Form 10-KSB for the fiscal year ended February 23, 1996
          and is incorporated herein by reference.

 10.5     Revolving Credit Agreement, dated as of March 27, 1997, between the
          Registrant and First Union National Bank was filed as Exhibit 10.6 to
          Registrant's Form 10-K for the year ended February 28, 1997 and is
          incorporated herein by reference.

 10.6     Amendment to Revolving Credit Agreement dated as of November 28, 1997
          and is incorporated herein by reference.

 10.7     Debenture Purchase Agreement, dated March 27, 1997, between the
          Registrant and Sirrom Capital Corporation was filed as Exhibit 10.7 to
          the Registrant's Form 10-KSB for the fiscal year ended February 28,
          1997 and is incorporated herein by reference.

 10.8     Preferred Stock Purchase Agreement, dated March 27, 1997, between the
          Registrant and Sirrom Capital Corporation was filed as Exhibit 10.8 to
          the Registrant's Form 10-KSB for the fiscal year ended February 28,
          1997 and is incorporated herein by reference.

 10.9     Stock Purchase Warrant, dated March 27, 1997, issued by the Registrant
          to Sirrom Capital Corporation was filed as Exhibit 10.9 to the
          Registrant's Form 10-KSB for the fiscal year ended February 28, 1997
          and is incorporated herein by reference.

 13       Portions of Registrant's 1999 Annual Report to Shareholders which are
          incorporated by reference into this Form 10-K.

 21       List of subsidiaries.

 23       Consent of Grant Thornton L.L.P.

 27       Financial Data Schedule

---------------
* Represents a management contract or a compensatory plan or arrangement.

         (b) Reports on Form 8-K:

             None.
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange
Act of 1934, the registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                    ENVIRONMENTAL TECTONICS CORPORATION

                                    By /s/ William F. Mitchell
                                       --------------------------------------
                                       William F. Mitchell,
                                       President and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.

Name                            Position                        Date
----                            --------                        ----

/s/ William F. Mitchell         Chairman of the Board,          May 24, 2001
--------------------------      Chief Executive Officer,
William F. Mitchell             President and Director

/s/ Duane D. Deaner             Chief Financial                 May 24, 2001
--------------------------      Officer (Principal
Duane D. Deaner                 Accounting Officer)

/s/ Richard E. McAdams          Director                        May 24, 2001
--------------------------
Richard E. McAdams

/s/ David Lazar                 Director                        May 24, 2001
-------------------------
David Lazar

/s/ Pete L. Stephens            Director                        May 24, 2001
--------------------------
Pete L. Stephens, M.D.

/s/ Philip L. Wagner            Director                        May 24, 2001
--------------------------
Philip L. Wagner, Ph.D.
<PAGE>


ENVIRONMENTAL TECTONICS CORPORATION AND SUBSIDIARIES
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS
($ in thousands)
<TABLE>
<CAPTION>


   Column A                                       Column B             Column C          Column D        Column E
   --------                                       --------             --------          --------        --------

                                                                        Charges/
                                                 Balance at            (Credits)                        Balance At
                                                  Beginning            to Costs/                          End of
 Description                                      of Period             Expenses       Reductions(A)      Period
 -----------                                      ---------             --------       -------------      ------
<S>                                               <C>                    <C>               <C>             <C>
Year ended February 23, 2001:

  Valuation and qualifying accounts related to:

    Accounts receivables                          $  367                $  (3)         $   --             $  370

    Inventory                                     $  720                $ 100          $  190             $  630

    Property, plant and equipment                 $8,004                $ 631          $   --             $8,635

    Software development costs                    $5,215                $ 455          $   --             $5,670

    Other assets                                  $   61                $  35          $   --             $   96

Year ended February 25, 2000

  Valuation and qualifying accounts related to:

    Accounts receivable                           $  385                $  --          $   18             $  367

    Inventory                                     $  625                $  95          $   --             $  720

    Property, plant and equipment                 $7,527                $ 535          $   58             $8,004

    Software development costs                    $4,619                $  96          $   --             $5,215

    Other assets                                  $   25                $  36          $   --             $   61

Year ended February 26, 1999

  Valuation and qualifying accounts related to:

    Accounts receivables                          $  379                $  83          $   77             $  385

    Inventory                                     $1,040                $(315)            100                625

    Property, plant and equipment                 $6,729                $ 798          $   --             $7,527

    Software development costs                    $3,914                $ 705          $   --             $4,619

    Other assets                                  $   --                $  25          $   --             $   25

</TABLE>


                       (A) Amounts written off or retired


<PAGE>

                                  EXHIBIT INDEX

Exhibit No.   Item
-----------   ----
    3.1   Registrant's Articles of Incorporation, as amended, were filed as
          Exhibit 3.1 to Registrant's Form 10-K for the year ended February 28,
          1997 and are incorporated herein by reference.

    3.2   Registrant's By-Laws, as amended, were filed as Exhibit 3(ii) to
          Registrant's Form 10-K for the year ended February 25, 1994 and are
          incorporated herein by reference.

    4.1   12% Subordinated Debenture due March 27, 2004 was filed as Exhibit 4.1
          to Registrant's Form 10-K for the year ended February 28, 1997 and is
          incorporated herein by reference.

   10.1   Registrant's 1988 Incentive Stock Option Plan was filed as Exhibit
          10(v) to Registrant's Form 10-K for the year ended February 23, 1990
          and is incorporated herein by reference.*

   10.2   Registrant's Employee Stock Purchase Plan was filed on July 6, 1988 as
          Exhibit A to the Prospectus included in Registrant's Registration
          Statement (File No. 33-42219) on Form S-8 and is incorporated herein
          by reference.*

   10.3   Registrant's Stock Award Plan adopted April 7, 1993, filed as Exhibit
          10(ix) to the Registrant's Form 10-K for the fiscal year ended
          February 25, 1994 and is incorporated herein by reference.*

   10.4   Form of 1996 Warrant Agreement between the Registrant and Chase
          Manhattan Capital Corporation, filed as Exhibit 10(xiv) to the
          Registrant's Form 10-KSB for the fiscal year ended February 23, 1996
          and is incorporated herein by reference.

   10.5   Revolving Credit Agreement, dated as of March 27, 1997, between the
          Registrant and First Union National Bank was filed as Exhibit 10.6 to
          Registrant's Form 10-K for the year ended February 28, 1997 and is
          incorporated herein by reference.

   10.6   Amendment to Revolving Credit Agreement dated as of November 28, 1997
          and is incorporated herein by reference.

   10.7   Debenture Purchase Agreement, dated March 27, 1997, between the
          Registrant and Sirrom Capital Corporation was filed as Exhibit 10.7 to
          the Registrant's Form 10-KSB for the fiscal year ended February 28,
          1997 and is incorporated herein by reference.

   10.8   Preferred Stock Purchase Agreement, dated March 27, 1997, between the
          Registrant and Sirrom Capital Corporation was filed as Exhibit 10.8 to
          the Registrant's Form 10-KSB for the fiscal year ended February 28,
          1997 and is incorporated herein by reference.

   10.9   Stock Purchase Warrant, dated March 27, 1997, issued by the Registrant
          to Sirrom Capital Corporation was filed as Exhibit 10.9 to the
          Registrant's Form 10-KSB for the fiscal year ended February 28, 1997
          and is incorporated herein by reference.

   13     Portions of Registrant's 1999 Annual Report to Shareholders which are
          incorporated by reference into this Form 10-KSB.

   21     List of subsidiaries.

   23     Consent of Grant Thornton L.L.P.

   27     Financial Data Schedule
---------------
* Represents a management contract or a compensatory plan or arrangement.