ENGlobal Signs Letter of Intent.

Energy Editors/Business Editors

HOUSTON--(BUSINESS WIRE)--Dec. 11, 2003

ENGlobal Corporation (AMEX:ENG) announced today that it has executed a binding Letter of Intent for the purchase of 100% of the stock of Spectrum Design Services Inc. ("SDS"), a Houston-based multi-discipline engineering design firm. ENGlobal expects to complete its final due diligence and make the acquisition effective Jan. 1, 2004.

SDS was founded by Pat Murphy, president, and John Hall, executive vice president, in 1990, and provides engineering, design and construction management services to the refining, chemical, petrochemical and pipeline industries throughout the United States. SDS was twice recognized as one of the "Houston 100" Fastest Growing Private Companies in Houston. The SDS corporate offices are in the Clear Lake area of Houston. SDS employs over one hundred (100) people annually and, based on unaudited financial statements, is expected to have revenues of over $5 million in 2003.

Michael L. Burrow, ENGlobal Corporation's chairman and CEO, stated, "We are extremely pleased with the prospect of SDS becoming part of the ENGlobal family of companies. SDS is ENGlobal's third acquisition this year and one of three mentioned in a press release issued several weeks ago that we are actively pursuing. We believe that the SDS acquisition will be accretive to earnings per share. Also, by adding to our personnel base in the Houston area, ENGlobal will move closer to the size at which it will be considered one of the largest Houston engineering firms. In addition, SDS operates with a slightly different client base from ENGlobal and has strong relationships with its primary clients.

"As previously stated, ENGlobal hopes to make additional announcements in the coming weeks regarding acquisitions that fit into its strategic plan. ENGlobal is actively negotiating letters of intent on three additional acquisitions. These three companies should have total combined revenues and pretax profits (based on unaudited financial statements) of $55 million and $3.5 million, respectively. If consummated, these acquisitions are expected to (i) be accretive to earnings, (ii) have little effect upon ENGlobal's current financial ratios and (iii) be synergistic from the standpoint of new customers and business lines.

"SDS' management team has shown a great deal of entrepreneurial spirit and enthusiasm both in how they have built their company and how they have negotiated a transaction that we believe will be positive to their shareholders as well as to ENGlobal shareholders. We look forward to completing this transaction and to working with everyone at Spectrum Design Services."

About ENGlobal Corporation "ENGlobal"

ENGlobal Corporation provides engineering services and engineered systems principally to the petroleum refining, petrochemical and pipeline and process industries throughout the United States and across the globe. ENGlobal's multi-discipline engineering and design staff develops projects from the initial planning stage through detailed design, procurement and construction management. The Engineered Systems Group develops, manufactures, installs and services control and instrumentation systems utilized in various energy and processing related industries while its Technologies Division provides services and products that support the advanced automation and environmental technology fields. The Constant Power Division fabricates industrial grade uninterruptible electrical power systems and battery chargers. 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, 2002, Form 10-Q's for the quarters ended March 31, 2003, June 30, 2003 and Sept. 30, 2003, current Forms 8-K and other SEC filings. Moreover, the discussion in this press release of the Company's proposed acquisitions is subject to risks which include the fact that such acquisitions may not close, may close on less favorable terms than desired or may close but not be successfully and profitably integrated by the Company.