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NEWS RELEASE
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FOR IMMEDIATE RELEASE
ENGlobal Corporation CONTACT: Natalie S. Hairston
(281) 878-1000
ir@ENGlobal.com
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ENGLOBAL PROVIDES ENGINEERING SEGMENT UPDATE
HOUSTON, TX, DECEMBER 6, 2005 - ENGlobal Corporation (AMEX: ENG), a leading
provider of engineering services, today reported that its wholly-owned
subsidiary, ENGlobal Engineering, Inc. ("EEI"), has received several contract
awards:
1. EEI has been awarded a project from a manufacturer of construction
materials and entered into a Global Engineering Contract whereby
ENGlobal will design, build and install a rubberized asphalt mixing
and delivery system. The contract, which the Company anticipates will
be completed in the second quarter of 2006, is expected to generate
revenues of approximately $4.6 million and will be performed in the
Company's Houston engineering office.
2. EEI and its wholly-owned subsidiary, ENGlobal Automation Group, Inc.
("EAG"), have entered into a contract to supply the initial front end
design of a new central control building for a Gulf Coast refinery.
The project includes upgrading the customer's existing distributed
control system, as well as performing preliminary architectural layout
and design, and an operational effectiveness study. The Company
believes that the initial phase of this multi-year project will result
in revenue of approximately $1 million.
3. Another Gulf Coast refinery has awarded EEI a contract to supply
engineering and detailed design for its steam methane reformer and
cogeneration electrical offsites. This project, which will be
performed primarily in the Company's Beaumont engineering office,
includes power distribution, fiber optic communication, and advanced
Supervisory Control and Data Acquisition (SCADA). The Company expects
that the first phase of this project will result in revenues of
approximately $1.5 million.
4. In December 2005, EEI's Polymers and Chemicals division, based in
Houston, will complete an automated rail car loading system for a Gulf
Coast polyethylene plant. The plant, owned by a global supplier of
petrochemicals and polymers, supports a polyethylene capacity of one
billion pounds per year. Utilizing resources from multiple ENGlobal
offices, the contract has generated approximately $1.1 million in
revenue.
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654 N. Sam Houston Parkway E. o Suite 400 o Houston, Texas 77060
www.ENGlobal.com
ENGlobal Corporation Press Release
December 6, 2005
Page 2
As previously reported, in June 2005, EEI signed a Notice to Proceed with a
major West Coast refiner to provide preliminary engineering services for the
construction of a sulfur recovery facility. A definitive contract has now been
negotiated and executed, under which ENGlobal believes it will receive revenues
of approximately $19 million. ENGlobal Sulfur Group will perform the majority of
work on this project, which represents the first major engineering, procurement
and construction (EPC) contract for the Company's Dallas office that uses
ENGlobal's licensed technology for sulfur recovery and tail gas treating.
"The Company expects increased capital spending in the energy sector over the
next several years," said Michael L. Burrow, P.E., President and Chief Executive
Officer of ENGlobal Corporation. "ENGlobal plans to support a mixture of client
initiatives, including grassroots plants, retrofitting existing facilities, and
automation-related opportunities. These types of capital projects, together with
those generated from regulatory mandates, should result in higher proposal
activity for the foreseeable future."
About ENGlobal Corporation
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ENGlobal Corporation provides engineering services and systems principally to
the petroleum refining, petrochemical, pipeline, production, and process
industries throughout the United States and internationally. ENGlobal's
multi-disciplinary engineering services group develops projects from the initial
planning stage through detailed design, procurement, and construction
management. The systems group develops, manufactures, installs, and services
control and instrumentation systems utilized in various energy and
process-related industries, and provides services and products that support the
advanced automation and environmental technology fields. The Company, with its
subsidiaries, now employs over 1,700 employees in 14 offices and occupies over
300,000 square feet of office and manufacturing space. In 2004 and 2005,
ZweigWhite named ENGlobal the #1 fastest growing engineering firm in the United
States, and in 2003, ZweigWhite named ENGlobal the #2 ranked fastest growing
engineering firm in the United States. Further information about the Company and
its subsidiaries is available at www.ENGlobal.com.
Safe Harbor for Forward-Looking Statements
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Certain matters discussed in this press release may constitute forward-looking
statements within the meaning of the federal securities laws and are subject to
risks and uncertainties including, but not limited to,(1) the Company's ability
to achieve its business strategy while effectively managing costs and expenses,
(2) the Company's inability to accurately assess the future financial impact of
Hurricane Rita on the Company's earnings, and (3) the continued strong
performance of the energy sector. Actual results and the timing of certain
events could differ materially from those projected in or contemplated by the
forward-looking statements due to a number of factors detailed from time to time
in ENGlobal's filings with the Securities and Exchange Commission. Among other
matters, there can be no assurance that the Company will provide significant
services under its new contracts or that the provisions of those services will
be profitable. In addition, reference is hereby made to cautionary statements
and risk factors set forth in the Company's most recent reports on Form 10-K and
10-Q, and in other SEC filings.
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