ENGlobal Announces the Sale of Its Manufacturing Operation.

Energy Editors/Business Editors

HOUSTON--(BUSINESS WIRE)--Dec. 17, 2003

ENGlobal Corporation (AMEX:ENG) announced today that it has completed the sale of selected assets of its only manufacturing subsidiary, Thermal Corporation ("Thermal"), to a medium-sized HVAC equipment manufacturer. The Purchaser will immediately begin selling, designing and manufacturing air handling equipment utilizing the Thermal brand name. The transaction is not expected to result in a material financial gain or loss for ENGlobal.

The disposition of Thermal has been actively pursued since November 2001 as a means to provide a strategic focus on ENGlobal's core operations. The 37,000-square-foot office and manufacturing facility owned by Thermal was not included in this transaction, and has been separately listed for sale. It is planned for the Thermal operation to be moved to the Purchaser's existing Houston manufacturing facility during the next three months.

"This is one of those transactions whereby all parties can win," stated William A. Coskey, ENGlobal Corporation's president and chief operating officer. "The Purchaser quickly obtains an additional product line with a well-established, quality name in the marketplace. Thermal associates retained by the Purchaser will become part of a solid and fast growing organization that has HVAC as its only business. And finally, for ENGlobal and our shareholders, this transaction is expected to be a positive step -- both for our balance sheet and for our strategic focus going forward."

About ENGlobal Corporation "ENGlobal"

ENGlobal Corporation 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-K for the year ended December 31, 2002, Form 10-Qs for the quarters ended March 31, 2003, June 30, 2003 and September 30, 2003, current Forms 8-K, and other SEC filings. Moreover, the discussion in this press release of the Company's proposed acquisitions is subject to risks which include the fact that such acquisitions may not close, may close on less favorable terms than desired, or may close but not be successfully and profitably integrated by the Company.