ENGlobal Corporation Announces Formation of Automation Services Division.

HOUSTON -- ENGlobal Corporation (AMEX:ENG), a leading provider of engineering services, announced today that it has formed ENGlobal Automation Group, a division of ENGlobal Engineering, Inc. ("EAG"), to provide services relating to the implementation of process control, advanced automation and information technology projects. EAG expects to provide clients with a full range of services in this area, including but not limited to, front-end engineering feasibility studies and the execution of turnkey engineering, procurement, and construction projects. By focusing on such large-scope projects, EAG intends to pursue distributed control systems ("DCS") conversion and new installation projects by utilizing its own resources as well as resources from both ENGlobal Engineering, Inc. and ENGlobal Systems, Inc.

EAG will promote ENGlobal's proven capabilities for plant automation services and products to respond to an industry progression toward replacing obsolete technology with new open system architecture DCS. Shelly D. Leedy, P.E. will lead this strategic initiative from ENGlobal's Beaumont office. Ms. Leedy has over twenty years of experience in the automation services industry, including the execution of instrumentation and automation projects in North and Latin America for a leading supplier of DCS products as well as heading a division with annual revenues in excess of $400 million.

The Company's 2005 strategic focus includes internally funded initiatives such as EAG. Management supports these initiatives by approving the use of significant Company resources in an effort to ensure that projects for ENGlobal's clients are executed efficiently and with a high level of quality.

Michael L. Burrow, P.E., Chairman and Chief Executive Officer of ENGlobal, said, "Ms. Leedy's expertise is in line with ENGlobal's overall pursuit to become the industry's leader of DCS projects. We welcome her to the ENGlobal family and invite our clients to take advantage of EAG, which offers a seamless integration of multiple systems into an optimum automation solution."

"ENGlobal is one of the best kept secrets in the field of process control and automation," said Shelly D. Leedy, P.E., President of the ENGlobal Automation Group. "We have a proven track record and a very compelling story. The work of our experienced personnel has resulted in numerous satisfied clients and successful projects, which should help to ensure that our clients will think of ENGlobal first for their automation projects."

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 1,400 employees in 12 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 December 31, 2003, Form 10-Q's for the quarters ended September 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 formation of EAG will result in significant new contracts or clients, or that the projects undertaken by EAG will be profitable, either individually or in the aggregate. Also, there can be no assurance that the Company's staffing of its new division will provide optimal results for the Company. 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.