ENGlobal Announces Two Acquisitions.HOUSTON -- ENGlobal Corporation (AMEX AMEX See: American Stock Exchange :ENG ENG electronystagmography. ENG abbr. electronystagmography ENG enzootic nasal granuloma. ), a leading provider of engineering services, today announced that a subsidiary has completed the acquisition of certain contract rights and equipment from Instrument Services Company, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("ISC (1) (Internet Systems Consortium, Redwood City, CA www.isc.org) An organization founded by Paul Vixie, Carl Malamud and Rick Adams in 1994 and later sponsored by UUNET and other Internet companies. ") based in Oklahoma. ISC specializes in providing technical support to the oil and gas industry, power generation and other processing environments. No liabilities were assumed as a result of this transaction. This new business unit will operate as the Instrument Services Division of ENGlobal Design Group Inc., a subsidiary of ENGlobal Corporation. ISC is known for utilizing its skilled technicians for various project and maintenance work, specifically in the areas of process controls, start-up and commissioning support, equipment installation and relocation, equipment controls upgrades, among others. The Company also announced that its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , ENGlobal Systems Inc. ("ESI (Edge Side Includes) A markup language for Web pages that enables elements of a Web page to be dynamically assembled in servers distributed throughout the Internet. "), has purchased certain contract rights and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. of InfoTech Engineering Company ("InfoTech"), headquartered in Baton Rouge Baton Rouge (băt`ən r  zh) [Fr.,=red stick], city (1990 pop. 219,531), state capital and seat of East Baton Rouge parish, SE La. , La. InfoTech
offers information consulting and control systems integration services
and specializes in automation and process control. InfoTech's
primary experience is in the onshore and offshore oil & gas and
petrochemical industries. No debt or liabilities have been assumed as a
result of this transaction.
Including these two acquisitions, ENGlobal has completed five asset acquisition transactions during 2004. Previously this year, the Company completed transactions expected to improve its capabilities in the areas of inspection services, automated fuel handling systems and government contracting. ENGlobal Corporation's chairman and chief executive officer, Michael L. Burrow, P.E., stated, "These acquisitions, albeit small in scope, bring expertise in their respective fields. We see the advantages for these acquisitions as three-fold: (1) each company offers a unique industry niche; (2) the synergies complement ENGlobal's organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. ; and (3) the acquisitions are consistent with our strategy of gaining 'vertical' growth by adding new service capabilities for our clients." About ENGlobal Corporation ENGlobal Corporation provides engineering services and systems principally to the petroleum refining, petrochemical, pipeline, production and process industries throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. 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 1,300 employees and occupies over 275,000 square feet of office and manufacturing space. In 2004, the Company was named the fastest-growing engineering firm in the United States by ZweigWhite. Further information about the Company and its subsidiaries is available at www.ENGlobal.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. 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-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended Dec. 31, 2003, Form 10-Q's for the quarters ended Sept. 30, 2004, June 30, 2004 and March 31, 2004, current Forms 8-K, and other SEC filings. Among other matters, there can be no assurance that the acquisitions will generate revenues, or that, if those revenues are generated, they will result in profits. In addition, there can be no assurance that the Company's operations as a whole will continue to be profitable. The information contained in this press release is also subject to the risk factors identified in the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2003. |
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