ENGlobal Awarded $7 Million Contract from Frontier Refining Inc.

HOUSTON -- ENGlobal Corporation (AMEX:ENG), a leading provider of engineering services, announced today that its subsidiary, ENGlobal Engineering Inc., has been awarded an engineering, procurement and construction contract from Frontier Refining Inc. Under the contract, ENGlobal expects to provide lump sum turn-key project services for modifications to produce ultra low sulfur diesel at Frontier's Cheyenne, Wyo., refinery. ENGlobal estimates revenues from the contract to be approximately $7 million.

The Frontier Cheyenne project is designed to add flexibility to Frontier's clean fuels program and to help Frontier meet future sulfur limits of its refined petroleum products. ENGlobal anticipates that it will be responsible for the labor, supervision, and materials and equipment procurement required for the design, engineering, fabrication, installation and construction for its portion of the project. Throughout the project, ENGlobal expects to provide support services to help the refinery maintain a safe and consistent operating environment. Work begins immediately on the engineering and design phase with completion scheduled during the spring of 2006.

"This contract award furthers our valued relationship with Frontier Refining and illustrates ENGlobal's commitment to its clean fuel refining customers," said Michael L. Burrow, P.E., chairman and chief executive officer of ENGlobal Corporation. "We would like to thank Frontier Refining for this opportunity and we look forward to working together with them on this important project."

Duncan Wohlgenant, vice president and refinery manager, Frontier Refining Inc., said, "We believe the contract with ENGlobal will help us reliably achieve the new ultra low sulfur diesel regulations and we look forward to working with them."

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 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 in over 10 offices 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 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 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 the Company will provide significant services under its new contract or that the provision of those services will be profitable. In addition, 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.