ENGlobal Corporation Announces Results of Annual Meeting of Stockholders, Separates Chairman and CEO Roles.

HOUSTON -- ENGlobal Corporation (AMEX:ENG), a leading provider of engineering services, today announced the results of its 2005 annual stockholders' meeting held this morning in Houston and that its Board of Directors has separated the offices of Chairman of the Board and Chief Executive Officer.

The formal business of the meeting included the approval of an amendment to the Company's 1998 Incentive Plan to increase the number of shares reserved for issuance thereunder from 2,200,000 to 2,650,000, and election of the following directors to a one-year term: William A. Coskey, P.E., Michael L. Burrow, P.E., David W. Gent, P.E., Randall B. Hale, and David C. Roussel. Approximately 92% of ENGlobal's total common stock outstanding was represented at the meeting, either in person or by proxy. Of those shares, approximately 95% were cast in favor of increasing the number of shares reserved for issuance under the Company's 1998 Incentive Plan, and approximately 99% were cast in favor of the election of the Company's directors.

After the conclusion of the formal business of the meeting, Messrs. Coskey and Burrow and Robert W. Raiford, Chief Financial Officer, reviewed the Company's 2004 performance and updated stockholders on ENGlobal's current business outlook and strategies.

The Company also announced that its Board of Directors appointed William A. Coskey, P.E., as Chairman of the Board at its Annual Organizational Board Meeting, held after the Annual Meeting of Stockholders. The board's unanimous decision separates the roles of Chairman and Chief Executive Officer. Michael L. Burrow, P.E. will continue to serve as Chief Executive Officer and will assume the position of President from Mr. Coskey. Mr. Coskey will assume the role of Chairman from Mr. Burrow and retain his merger and acquisition responsibilities, as well as his other current duties within the Company. The decision to separate the roles of Chairman and Chief Executive Officer is part of ongoing efforts by ENGlobal to follow best practices in corporate governance. Mr. Coskey is the founder of ENGlobal and, until the merger with Petrocon Engineering, Inc. in December 2001, had served as Chairman of the Board, Chief Executive Officer and President of the Company.

Michael L. Burrow, P.E., ENGlobal's new President and Chief Executive Officer, said, "Bill will provide strong leadership, and ENGlobal will greatly benefit from his public company experience and perspective. I fully support this decision and look forward to working closely with Bill for many years to come."

Responding in his new role as ENGlobal's Chairman, William A. Coskey, P.E., added, "Mike has excellent skills, both in operations and business development, that are probably unique in our industry. No doubt, Mike's leadership and strategic insights as CEO will continue to be crucial to our Company's success. I look forward to serving our Board and our stockholders as ENGlobal's Chairman."

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 13 offices and occupies over 300,000 square feet of office and manufacturing space. Investors Business Daily recently listed ENGlobal as one of the "10 Highest-Rated Stocks Under $10". In 2004, the Company was named the #1 fastest growing engineering firm in the United States by ZweigWhite and was ranked #2 in 2003. 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, 2004, current reports on Forms 8-K, and other SEC filings. In addition, the information contained in this press release is subject to the risk factors identified in the Company's Form 10-K for the year ended December 31, 2004.