ENGlobal Provides Initial Assessment of Its Gulf Coast Operations Following Hurricane Rita.

HOUSTON -- ENGlobal Corporation (AMEX:ENG), a leading provider of engineering services, today announced its preliminary assessment and probable overall impact to its operations as a result of Hurricane Rita. The Company has not received reports of flood damage to any of its Gulf Coast locations, but at least two buildings sustained wind damage that will impact the Company's operations.

1. The Company's two-story administration building in Beaumont, Texas, one of four buildings that ENGlobal occupies in the area, sustained roof and structural damage that primarily affected offices that house executive personnel and accounting managers.

2. ENGlobal's Lake Charles, Louisiana office, located on the 8th floor of the 24-story Hibernia Tower, had an undetermined amount of damage as a result of window breakage due to high winds.

The Company has a total of 15 separate business facilities in the U.S. and Canada, nine of which are located near the Gulf Coast between Freeport, Texas and Baton Rouge, Louisiana. Together the two wind-damaged facilities accommodate approximately 95 of the Company's total 1,650 employees, some of which perform critical accounting and administrative functions for the Company. The full extent of the damage and its impact on operations has not been ascertained. Most of ENGlobal's Gulf Coast offices were closed on Thursday, September 22, 2005, once voluntary evacuation orders went into effect.

The Company anticipates the financial impact of Hurricane Rita will primarily be related to the loss of billing revenue and anticipated gross profits between the time of evacuation and the resumption of normal business operations at the affected locations. The Company expects its insurance to cover the majority of the physical damage to its property as well as any subsequent relocation, but ENGlobal will be obligated to pay applicable deductibles and may be required to incur costs that are in excess of its insurance coverage. An estimate of the overall financial impact cannot be determined at this time.

ENGlobal is not aware of any loss of its critical computer-related data, either financial- or client-related, as a result of the hurricane. At present, the Company believes all of its servers are functional. Before the evacuation of ENGlobal's Beaumont location, the accounting group implemented a contingency plan to perform upcoming payroll operations from the Company's Dallas, Texas office. In addition, ENGlobal does not anticipate the need to utilize its disaster recovery plan, which had been established to mitigate the loss of Company-wide critical computer data.

ENGlobal's largest office facility in Beaumont, which houses approximately 200 engineering related employees, did not experience significant damage, but will be without utilities for an indefinite period. Several other offices will remain closed for a varying periods in the near future, depending on local conditions, restoration of utilities, and the employees' ability to return to the area. The Company currently expects that its impacted operations between Freeport, Texas and Lake Charles, Louisiana will reopen on or before Monday, October 3, 2005.

The Company will provide additional details regarding the effects of Hurricane Rita as more information becomes available.

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 1,600 employees in 15 offices and occupies over 300,000 square feet of office and manufacturing space. In 2005 and 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 impact from Hurricane Rita and the timing of that impact could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors. Reference is hereby made to cautionary statements set forth in the Company's most recent reports on Form 10-K and 10-Q, and other SEC filings. In addition, the information contained in this press release is subject to the risk factors identified in the Company's most recent Form 10-K.