FOR IMMEDIATE RELEASE ENRD

TUESDAY, JULY 10, 2007 (202) 514-2007

WWW.USDOJ.GOV TDD (202) 514-1888

Federal Settlement Targets Illegal

Emission Control “Defeat Devices”
Sold for Autos
WASHINGTON - The Department of Justice and U.S. Environmental Protection
Agency (EPA) announced today a landmark settlement requiring Casper’s
Electronics, of Mundelein, Ill., to pay a penalty and stop selling devices that allow
cars to release excess levels of pollution into the environment, in violation of the
Clean Air Act (CAA).

Today’s settlement, the first of its kind, requires Casper’s to stop selling electronic
devices — known as oxygen sensor simulators or “O2 Sims” — recall the devices,
and pay more than $74,000 in civil penalties to the United States. An O2 Sim tricks
an automobile engine’s computer into sensing a properly functioning emission
control system, even when the catalytic converter is missing or faulty. These “after-
market” sensors are considered illegal “defeat devices” under the federal CAA.

Casper’s has sold approximately 44,000 defeat devices through retailers and from its
Web site since 2001. The EPA estimates that the increased emissions from
installation of these devices over the life of the vehicles are 7,400 tons of
hydrocarbons, 347,000 tons of carbon monoxide, and 6,000 tons of nitrogen oxides.
This is equivalent to the emissions produced by a half-million cars with fully
operational emission control systems over their lifetimes.

“Emission control defeat devices, like those used here, risk harming human health
and the environment by allowing huge increases in pollutants from motor vehicles,”
said Ronald J. Tenpas, Acting Assistant Attorney General for the Justice
Department's Environment and Natural Resources Division. “The Justice
Department will continue to vigorously enforce all of the provisions of the Clean
Air Act — including its rule against these devices — against violators, including
those using the Internet to illegally sell their wares.”

“Reliable and effective automobile pollution control systems are essential to protect
human health and the environment from harmful automobile emissions,” said
Granta Nakayama, the EPA’s Assistant Administrator for enforcement and
compliance assurance. “Casper’s sale of the oxygen sensor simulator defeat devices
over a multi-year period is a serious violation because it facilitated the removal or
malfunctioning of motor vehicle catalytic converters, which are the primary
emission controls devices to prevent excessive pollution from cars and trucks.”

An oxygen sensor simulator sends a false electronic signal to the car's engine
control computer, preventing the “check engine” or “malfunction indicator” light
from illuminating. The malfunction light, part of a vehicle's on-board diagnostic
(OBD) system, alerts the driver when there is a problem with the emission control
system.

Casper’s O2 Sims allowed vehicle owners to remove or disable the catalytic

converter without the OBD system detecting the problem and turning on the check
engine light. The CAA prohibits the manufacture and sale of any devices, such as
Casper’s O2 Sims, that bypass or defeat required pollution control equipment on
motor vehicles. Cars and trucks with defeat devices can emit up to 50 times the
amount of harmful pollution emitted by vehicles with properly functioning emission
controls.

The EPA is currently investigating other automobile parts manufacturers and sellers
that may also be making and selling similar products. EPA has found that some
companies are advertising O2 Sims and other defeat devices as a way to enhance a
car’s performance. In addition, some companies include in their advertisements a
claim that the devices are for “off-road use only”, despite clearly marketing the
devices for on-road vehicles.

Air emissions from cars include harmful pollutants such as non-methane

hydrocarbons and oxides of nitrogen, key ingredients in the production of ozone, a
major component of urban smog. Tailpipe emissions also include carbon monoxide,
which impairs breathing. Both ozone and carbon monoxide are especially harmful to
children, people with asthma and the elderly.

The recall required by the settlement requires Casper’s to implement a mandatory

repurchase program under which it must notify its customers that Casper’s will buy
back any O2 Sims sold by Casper’s or its distributors, and create and implement a
reporting system to ensure future compliance.

Both the complaint and the consent decree were filed today in the U.S. District
Court for the Northern District of Illinois, Eastern Division.

The consent decree is subject to a 30-day public comment period and subsequent
court approval, and is available for viewing at the Justice Department Web site
http://www.usdoj.gov/enrd/Consent_Decrees.html.

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