ENGlobal Corporation Announces Contract with ChevronTexaco.

Energy Editors/Business Editors

HOUSTON--(BUSINESS WIRE)--June 8, 2004

ENGlobal Corporation (AMEX:ENG), a leading provider of engineering services, today announced that it has been awarded four new contracts to provide engineering and systems work to ChevronTexaco (NYSE:CVX) and three other Fortune 500 companies that cannot be named due to contractual covenants. Since January 1, 2004, ENGlobal has been awarded various projects anticipated to provide revenues of approximately $25 million and has built a backlog of approximately $62 million.

ENGlobal confirmed that its wholly-owned subsidiary, ENGlobal Engineering, Inc., has been awarded a contract to perform engineering services for ChevronTexaco. Under this two-year contract, ENGlobal expects ChevronTexaco to utilize ENGlobal's capabilities on a variety of upstream, midstream and downstream projects worldwide. The contract value to ENGlobal was not specified, however, historical spending levels indicate that this relationship with ChevronTexaco could provide significant engineering revenues over the next two years.

The Company also announced that its wholly-owned subsidiary, ENGlobal Systems, Inc. ("ESI"), has been chosen by an energy and petrochemical industry leader to design and fabricate remote instrument enclosures ("RIEs") and perform instrumentation upgrades for a major upstream project. The RIEs will incorporate distributed control systems technology and will be assembled at ESI's Houston, Texas facility. Under the contract, ENGlobal will provide technical services related to the design, fabrication, outfitting, and acceptance testing of the RIEs. The contract is expected to provide approximately $1.3 million in revenue. The Company believes that it will complete this work in the first quarter of 2005.

One of the largest international, integrated energy companies in the United States has also awarded ESI four analyzer shelter projects for various sites throughout the US. The projects include continuous emissions monitoring systems (CEMS) analyzer integration, which are specifically designed to meet the U.S. Environmental Protection Agency regulatory requirements for stack emissions and air quality standards. The Company anticipates that the contract will result in revenues of approximately $700,000. The Company will use ESI's Houston, Texas facility to complete the manufacturing requirements for this contact.

In addition to the above projects, ESI has also been awarded a control building project worth approximately $600,000 by a diversified technology and manufacturing leader of aerospace products and services. Under the terms of this contract, ENGlobal will provide distributed control systems and safety shutdown systems integration as well as factory acceptance testing. The fabrication and testing of the project will be implemented at ESI's Beaumont, Texas facility. Under this contract, ENGlobal will provide technical services related to installation and startup. The Company believes that it will complete work under this contract in the fourth quarter of 2004.

"These new awards are indicative of an overall positive trend in the marketplace and reflect our reputation as an experienced engineering and systems solutions provider. The Company and its predecessors have worked previously with each of the companies and believes that these contract awards demonstrate the strength of these client relationships," said Michael L. Burrow, P.E., Chairman and Chief Executive Officer of ENGlobal Corporation. "Our engineering segment, which continues to perform above expectations, should see even more growth from the new ChevronTexaco contract. Management estimates that the increase in backlog for our systems segment should improve financial results for that division in the third and fourth quarters of this year."

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 1,000 employees and occupies over 250,000 square feet of office and manufacturing space. 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, 2003, Form 10-Q's for the quarters ended March 31, 2004, June 30, 2003 and September 30, 2003, current Forms 8-K, and other SEC filings. Among other matters, there can be no assurance that operating results from the systems segment will improve or that the Company will provide significant services under its new contracts 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 December 31, 2003.