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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'S NEWLY FORMED AUTOMATION GROUP ANNOUNCES RECENT PROJECT AWARDS
HOUSTON, TX, DECEMBER 19, 2005 - ENGlobal Corporation (AMEX: ENG), a leading
provider of engineering and systems services, today announced that its
wholly-owned subsidiary, ENGlobal Automation Group, Inc. ("EAG"), has been
awarded several control system automation contracts totaling approximately $13
million. The Company announced the formation of EAG in March 2005 as its most
recent internal initiative. The following contract awards represent EAG's
successes to date:
1. EAG is expected to support a west coast refinery with the upgrade of
its existing distributed control system to the latest generation of
hardware and software, including overseeing the construction of a new
central control room. The project is estimated to be valued at
approximately $6 million in revenue and will extend through the second
quarter of 2008.
2. Similarly, as previously reported, EAG and ENGlobal Engineering, Inc.
("EEI") anticipate that they will provide the initial front end design
phase of a new central control building for a Gulf Coast refinery. The
initial phase of this project is valued at approximately $1 million.
3. A Gulf Coast refinery has awarded EAG the detailed engineering for a
major distributed control system revamp to a power station, including
water plant, boiler house and power generation areas. The front end
study, worth approximately $1 million in revenue, has been completed,
with the project now transitioning into the detailed engineering
phase, valued at approximately $4 million. This project will extend
through the second quarter of 2007.
4. EAG was also awarded the first phase of project, currently valued at
$1 million, to provide detailed engineering to upgrade control system
equipment and technology for a Gulf Coast chemical plant. EAG will
partner with a leading vendor for distributed control systems for the
project, which includes three separate operational units. The project
is expected to extend through 2009.
"Beyond these awards, we continue to pursue a large number of opportunities in
the field of automation services. Our successes to date validate our business
development efforts and represent the strengths of the ENGlobal Automation
team," said Shelly D. Leedy, P.E., President of ENGlobal Automation Group, Inc.
"These contracts prove that EAG is on the right track as we build a world class
automation operation throughout the Gulf Coast and Canada."
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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 19, 2005
Page 2
About ENGlobal Corporation
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ENGlobal Corporation provides engineering and systems services principally for
the petroleum refining, petrochemical, pipeline, production, and process
industries throughout the United States and internationally. ENGlobal's
multi-disciplinary engineering 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 1,800 employees in 14 offices and occupies over
300,000 square feet of office and manufacturing space. In 2005 and 2004, the
Company was named the #1 fastest growing engineering firm in the United States
by ZweigWhite and was ranked #2 in 2003. 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
set forth in the Company's most recent reports on Form 10-K and 10-Q, and other
SEC filings. In addition, the information contained in this press release is
subject to the risk factors identified in the Company's most recent Form 10-K.
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