ENGlobal Corporation

October 11, 2005 08:04 ET

ENGlobal Opens Calgary Office, Provides Hurricane Rita Update

HOUSTON--(CCNMatthews - Oct 11, 2005) -

ENGlobal Corporation (AMEX: ENG), a leading provider of engineering services, announced today the opening of the first ENGlobal Canada office in Calgary, Alberta. ENGlobal Canada is a subsidiary of ENGlobal Automation Group, Inc., a subsidiary of ENGlobal. The Calgary office will provide engineering services relating to the implementation of process control, instrumentation, advanced automation and information technology projects. In addition, the office is expected to provide clients with a range of services from front-end engineering feasibility studies to turnkey project implementation.

ENGlobal's Calgary office is the product of the Company's latest internal growth initiative and will spotlight a multitude of projects based in Northern Alberta, specifically in the oil sands area. Initial business development efforts to date have led to several strong alliances with vendors offering distributed control systems (DCS) services and specific partnerships to facilitate the pursuit of projects.

Mr. Tony Collett has been appointed to manage the Calgary office. Mr. Collett has worked in the engineering, instrumentation and automation fields for over 40 years, with 25 years of relevant experience in Alberta.

"ENGlobal has been providing systems and engineering services to our Canadian customers for many years," said Shelly D. Leedy, P.E., President of ENGlobal Canada. "The decision to open the Calgary office was based on Alberta being one of the hottest markets for engineering services companies in the Americas. A number of significant projects are planned in the region and several key individuals have joined ENGlobal to help kick off this initiative."

ENGlobal also reported that its Beaumont, Texas and Lake Charles, Louisiana engineering offices, closed as a result of Hurricane Rita, have reopened effective October 6, 2005 and October 10, 2005, respectively. As of October 10, 2005, approximately 80% of the approximately 700 ENGlobal employees affected by office closures have returned to work, with full staffing expected to resume in the coming weeks. ENGlobal has relocated its accounting operations to its Houston corporate office for an extended period of time as a result of the extensive repairs needed to reopen the Company's administrative offices in Beaumont, Texas. ENGlobal currently expects to timely file its Quarterly Report on Form 10-Q for the period ended September 30, 2005 on or before November 14, 2005.

About ENGlobal Corporation

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 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 1,600 employees in 13 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

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 (i) the Company's ability to achieve its business strategy while effectively managing costs and expenses, (ii) the ability of ENGlobal Canada to successfully market engineering services in Canada, (iii) the continued exploitation of Canadian oil sands deposits, and (iv) costs and time constraints associated with the repair of ENGlobal facilities affected by Hurricane Rita. 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. 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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