ENGlobal Corporation Announces Tulsa Office Expansion and Provides Update on Its Transaction Activities.

HOUSTON -- ENGlobal Corporation (AMEX:ENG), a leading provider of engineering services, announced today that a subsidiary, ENGlobal Engineering Inc., has entered into a master services agreement with an established pipeline company, which cannot be named due to a contractual covenant. Under the agreement, ENGlobal will provide professional and technical personnel, primarily in Oklahoma, with project responsibilities that include engineering, procurement, construction management, and inspection. ENGlobal's performance under this agreement will commence immediately with its Tulsa operation having primary responsibility for the provision of services under the new agreement. Further details of the contract were not disclosed.

A Tulsa-area refining company has also engaged ENGlobal's Tulsa office to design a front end engineering design package for a flare gas recovery unit and a flare gas knock-out drum replacement. These projects are expected to result in a total installed cost value of approximately $9 million, with approximately $1 million anticipated in additional engineering revenue through the third quarter of 2005. To facilitate these and other contract awards, ENGlobal Engineering Inc. recently tripled the size of its Tulsa office to approximately 40,000 square feet of leased space.

Michael L. Burrow, P.E., chairman and chief executive officer of ENGlobal Corporation, stated, "These contract awards are yet another example of a turnaround in our industry and validate the hard work of our Tulsa office. We are optimistic about ENGlobal's future outlook and expect the current hiring trend in most of our offices to continue through year-end."

The Company also announced that, through one of its subsidiaries, ENGlobal Construction Resources Inc. ("ECR"), it has purchased the name and certain assets from AmTech Inspection, LLC, a small inspection services company located in Midland, Texas. This acquisition strengthens the Company's capabilities in Process Safety Management (PSM), an OSHA requirement for a comprehensive management program that integrates technologies, procedures, and management practices for facilities in the process plant environment that use highly hazardous chemicals. The acquisition of AmTech is strategic to ENGlobal because of AmTech's expertise in PSM, as well as its expertise in other aspects of government regulation and compliance for energy facilities. Specific terms of the transaction were not disclosed.

As previously reported, ECR purchased the name and certain assets of Cleveland Inspection Services Inc., a privately held inspection firm with approximately 200 employees nationwide. The transaction was finalized effective Oct. 16, 2004. ENGlobal expects the Cleveland Inspection transaction to result in up to $20 million of additional revenue in the next fiscal 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 1,300 employees 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, 2003, March 31, 2004, and June 30, 2004, current Forms 8-K, and other SEC filings. Among other matters, there can be no assurance that the Company will provide significant services under its new contracts or that the provision of those services will be profitable. Also, there can be no assurance that the acquisitions described in this Press Release will generate the revenues or provide the expertise anticipated, or that, if additional revenues are generated or additional expertise was acquired, that their acquisition will result in profitable operations. 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.