ENGlobal Announces New Contract With BASF; Multi-Year Contract With Potential Value of $15Million.

Energy Editors/Business Editors

HOUSTON--(BUSINESS WIRE)--June 16, 2003

ENGlobal Corporation (AMEX: ENG), a leading provider of engineering services and engineered systems, today announced that its subsidiary, ENGlobal Engineering Inc. ("ENGlobal"), has received a contract from BASF Corporation (NYSE: BF) to provide on-site engineering, design and support personnel at its Freeport, Texas and Geismar, Louisiana plants.

Company officials estimate the value of the open-ended contract to be approximately $15 million over the next three years. ENGlobal has provided in-plant personnel to BASF for 20 years and under this contract, ENGlobal will supply all in-plant engineers and designers at these sites by mid-July. This level of staffing will be approximately three times ENGlobal's current staffing level in place at BASF sites. ENGlobal anticipates teaming with a local Freeport engineering firm to combine resources in support of operations in the Freeport area.

Commenting on these results, Jimmie N. Carpenter, Executive Vice President of ENGlobal Engineering stated, "The award of this long-term contract represents significant growth in our relationship with BASF. We are proud to be considered the single source provider for BASF and are committed to offering the best talent to our client at cost-competitive rates."

"We value our twenty-year relationship with BASF and we greatly appreciate the confidence they have in us," stated Mike Burrow, Chairman and CEO. "The awarding of this contract serves to strengthen ENGlobal's position in the Baton Rouge marketplace and positions the Company for additional growth in the Freeport area."

About BASF Corporation

BASF Corporation (NYSE: BF) is one of the world's leaders in the chemical industry, with a product line which includes high-value-added chemicals, plastics, colorants and pigments, dispersions, automotive and industrial coatings, agricultural products, fine chemicals, crude oil, and natural gas. BASF operates production facilities in 38 countries and has a global workforce of about 90,000.

About ENGlobal Corporation "ENGlobal"

ENGlobal Corporation, a product of the merger between Industrial Data Systems Corporation and Petrocon Engineering, Inc., provides engineering services and engineered systems principally to the petroleum refining, petrochemical, and pipeline and process industries throughout the United States and across the globe. ENGlobal's multi-discipline engineering and design staff develops projects from the initial planning stage through detailed design, procurement, and construction management. The Engineered Systems Group develops, manufactures, installs, and services control and instrumentation systems utilized in various energy and processing related industries while its Technologies Division provides services and products that support the advanced automation and environmental technology fields. The Constant Power Division fabricates industrial grade uninterruptible electrical power systems and battery chargers. 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, the Company's ability to achieve its business strategy while effectively managing costs and expenses. 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 Form 10-Q for the quarter ended March 31, 2003, Form 10-K for the year ended December 31, 2002, current Forms 8-K, and other SEC filings.