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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 EXPANDS ANALYZER DIVISION AND ANNOUNCES PROJECT AWARD
HOUSTON, TX, FEBRUARY 21, 2006 - ENGlobal Corporation (AMEX: ENG), a leading
provider of engineering and systems services, today announced that its
wholly-owned subsidiary, ENGlobal Systems, Inc. ("ESI"), has acquired certain
assets of Analyzer Technology International, Inc. ("ATI"), a Houston-based
analyzer systems provider. In addition, ATI has been selected by an
international engineering and construction firm to supply analyzer systems for a
major Middle Eastern petrochemical facility. ENGlobal expects that this
agreement will generate approximately $17 million in revenue over the life of
the project and, of this amount of work, the first $3.3 million was recently
authorized.
ATI, which specializes in the design and fabrication of online process analyzer
systems, is expected to realize efficiencies when it moves its operation to
ESI's Houston facility. In addition, co-locating enables ESI's clients to
perform a more efficient factory acceptance test by temporarily connecting both
control and analyzer systems onsite prior to delivery.
The addition of ATI and the newly formed Analyzer Technology division of ESI
will provide the Company with a greater presence in the process analyzer sector.
The Middle Eastern supply agreement is typical of ATI's most recent sales
opportunities, which primarily include engineering and construction clients that
are sourcing systems for international grassroots projects. There was no stock
consideration issued as a result of this transaction. Additional terms of the
transaction were not disclosed.
Art Williams, former President of ATI, and now Vice President of ESI, said, "I
am excited to be part of the ENGlobal team. ATI has always prided itself on
maintaining independence with respect to analyzer equipment manufacturers in
order to fully serve all customers, regardless of their analyzer preferences. We
are also proud of the tools we developed for efficiently executing analyzer
projects, and look forward to incorporating these same methods at ESI's
location."
"We expect that ESI's expanded capabilities in process analyzers, together with
its strong tradition in instrumentation and control systems will be viewed by
our clients as a valuable and winning combination," added Myron C. Glidewell,
President of ESI. "We welcome Art and his team to the ENGlobal family of
companies and thank our newest client for its support of ENGlobal."
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654 N. Sam Houston Parkway E. o Suite 400 o Houston, Texas 77060-5914
www.ENGlobal.com
ENGlobal Corporation Press Release
February 21, 2006
Page 2
The Company also announced that ESI recently divested the assets of its Constant
Power division to a private buyer. Management made the decision to exit the
uninterruptible power systems market, which it believes is non-strategic and not
material to its core business.
About ENGlobal Corporation
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ENGlobal Corporation provides engineering and systems services principally to
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 designs, fabricates, and supports control, instrumentation and
analyzer systems utilized in various energy and process-related industries. 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 ability to successfully integrate the operations of ESI into
its existing operations; 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 successfully integrate the operations of ATI
into its existing operations, that the ESI acquisition will result in
significant revenues to the Company, or that ESI's provision of 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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