Yokogawa and ENGlobal Form Strategic Alliance.

HOUSTON -- Yokogawa Corporation of America, a leading provider of automation and control equipment, and ENGlobal Systems, Inc. ("ESI"), a subsidiary of ENGlobal Corporation (AMEX:ENG), announced the formation of an alliance, by which the two businesses will jointly develop and provide services to the energy industry.

Under the agreement, ENGlobal becomes one of Yokogawa's preferred suppliers of general engineering services, including instrumentation and electrical, mechanical, structural, and other engineering support. In addition, Yokogawa has agreed to give ESI and its affiliates preferred pricing for all Yokogawa products sold to ESI and its affiliates. Finally, ESI becomes the only preferred supplier in the United States of Remote Instrument Enclosures (RIEs) for Yokogawa.

The companies believe this alliance, which targets their common markets, combines the competencies and skill sets of two highly experienced organizations. Yokogawa, in collaboration with management at ENGlobal's systems group, will lead the alliance. No other terms of the agreement were disclosed.

David Johnson, President and Chief Operating Officer of Yokogawa Corporation of America, commented, "Yokogawa is extremely pleased to have the opportunity to work closely with ENGlobal. We believe this alliance greatly enhances our MAC (Main Automation Contractor) capabilities and positions us well for targeted growth in the North American market. We anticipate that it will benefit all parties concerned - Yokogawa, ENGlobal, and most of all, our customers."

"We are pleased to be working with Yokogawa and believe this alliance will bring real value to our clients, translating into long-term working relationships," said Michael L. Burrow, P.E., ENGlobal's President and Chief Executive Officer. "ENGlobal believes strongly in a strategy of creating alliances and partnerships to better serve our clients."

About Yokogawa

Yokogawa's global network of 18 manufacturing facilities, 83 affiliate companies, and over 650 sales and engineering offices spans 28 countries. Since its founding in 1915, the US$4 billion company has been engaged in cutting-edge research and innovation, securing more than 7,000 patents and registrations, including the world's first digital sensors for flow and pressure measurement. Industrial automation and control, test and measurement, information systems and industry support are the core businesses of Yokogawa. For more information about Yokogawa, please visit www.yokogawa.com/us.

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 14 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 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. Among other matters, there can be no assurance the Company will provide significant services under its new alliance or that the provision of those services will be profitable. 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.