ENGlobal Corporation Provides Updated Financial Expectations; Three-Year Strategic Plan Unveiled.

Business Editors

HOUSTON--(BUSINESS WIRE)--Jan. 29, 2003

ENGlobal Corporation (AMEX:ENG), a leading provider of engineering services and engineered systems, today announced that it expects that its 2002 ongoing earnings results will be in line with previously announced earnings estimates, despite the sluggish economy. In November 2002, the Company reported that it would be on the low end of the projected earnings range. Although financial results have not been finalized for 2002, revenues for the year are anticipated to be approximately $91 million and the Company expects earnings per share on a diluted basis to be approximately $0.08.

Fourth quarter 2002 highlights include:

-- Engineered Systems segment recorded its largest ever backlog, totaling nearly $7 million at year-end 2002. Additional lease space was arranged to facilitate ongoing completion of a contract to provide multiple remote instrument buildings for a new world class grass roots Ethylene, Olefins, and Ethylene Oxide/Ethylene Glycol's complex in Saudi Arabia.

-- Petrocon Engineering Inc. ("PEI"), now known as ENGlobal Engineering Inc., was named One of America's Safest Companies in the October 2002 issue of Occupational Hazards Magazine.

-- Early November utilization rates and billable man-hours reached a record high as a result of obtaining several new contracts.

-- PEI was unsuccessful in its auction bid attempt to continue to provide services to a major chemical client with eleven plants along the Gulf Coast. As a result, the Company potentially lost $4.1 million in in-plant related revenue. Alternatives to replace this lost revenue are being reviewed by the Company.

2003 Strategic Plan

The Board of Directors recently approved ENGlobal's three-year corporate strategic plan, which was developed by joint effort of ENGlobal subsidiary companies and divisions. Like any plan, it makes certain assumptions regarding economic conditions, interest rates, etc. and, thus, is subject to revision as conditions change. The plan identifies specific goals, objectives and methodologies for reaching the financial objectives stated for each entity. Management challenged critical assumptions behind each plan, how the plan would accomplish the projected goals, and whether the financial projections were realistic. Accountability standards, scheduled milestones and a management by objectives philosophy will be instituted as part of the overall strategy.

ENGlobal Chairman and Chief Executive Officer, Michael L. Burrow, stated, "The plan provides a road map by which we will achieve our ultimate goal of raising our stock price over the next three-year period. We desire this to be a working document, not just a book that gathers dust on a manager's desk. We are now executing quarterly objectives for each corporate and operating business segment and will be closely monitoring the results."

Mr. Burrow further stated that the Company expects to realize revenues of $100 to $129 million and a range of 10 cents to 14 cents per share projected earnings in 2003. The 2003 budget does not allow for acquisitions, although the strategic plan emphasizes that acquisitions will be considered during 2003. Thus, any acquisitions accomplished in 2003 will vary the financial goals accordingly.

Highlights of the Strategic Plan include:

-- accomplish a planned 20% growth over the next several years

-- focus the Company to become what has been termed an "execution

company", meaning that, if we plan it, we must execute it

-- develop a replacement bonus incentive plan which increases

focus on accomplishing strategic goals and objectives

-- seriously investigate mergers and acquisitions to further

expand geographically across the United States and diversify

operations

-- develop an IR plan targeted at obtaining retail and

institutional interest in ENG

-- present a consistent message through increased communications

to existing and potential investors

-- better utilize electronic media and face-to-face meetings to

accomplish IR goals

About Occupational Hazards Magazine

Occupational Hazards, established in 1938 and published monthly by Penton Media Inc., provides coverage of major legislative, regulatory, and scientific developments, practical how-to articles and profiles of corporate programs and leading professionals. Editorials provide information to meet OSHA and EPA compliance requirements, and improve the management of safety, industrial hygiene and environmental process.

About ENGlobal Corporation "ENGlobal"

ENGlobal Corporation (formerly known as Industrial Data Systems Corporation) is a leading provider of engineering services and engineered systems principally to the pipeline and process industries throughout the United States and internationally. ENGlobal's multi-disciplined staff develops projects from the initial planning stage through the detailed design, procurement, and construction management stages. Engineered systems are related to automation, control and uninterruptible power. ENGlobal is the parent of eight wholly-owned operating subsidiaries, which effective Jan. 25, 2003, include: ENGlobal Engineering Inc., IDS Engineering Inc. dba ENGlobal Engineering Inc., RPM Engineering Inc. dba ENGlobal Engineering Inc., ENGlobal Construction Resources Inc., ENGlobal Systems Inc., ENGlobal Constant Power Inc., ENGlobal Technologies Inc. and Thermal Corporation. ENGlobal Corporation is also the parent of ENGlobal Corporate Services, Inc. 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 ENG'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, 2001, Form 10-Q for the quarters ended March 31, June 30, and Sept. 30, 2002, current Forms 8-K, and other SEC filings.