it is a valve on your exhaust that closes and opens. depending on rpm. it creats backpressure to control and create torque. it is controlled by a servo motor via cables.
On my '99 when I went with the yosh full exhaust, right around 3500 - 4000 RPS there was just a very slight flat spot. Obviously I had to eliminate the EXUP vavle and the shop told me to expect that. But it really wasn't that bad.
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