ENGlobal Provides Corporate Update

ENGlobal Provides Corporate Update

HOUSTON, Oct. 31, 2012 (GLOBE NEWSWIRE) -- ENGlobal Corporation (Nasdaq:ENG),
a leading provider of energy-related project delivery solutions, announced
today that it has been granted additional time by its lender for the purpose
of negotiating the terms of an extended waiver period. As previously
announced, ENGlobal has hired a management consultant and is developing a plan
to restore the Company's compliance with its credit facility.This extended
period through the first quarter of 2013 would allow ENGlobal's management
sufficient time to implement this plan.

ENGlobal (Nasdaq:ENG), founded in 1985, is a provider of engineering and
related project services principally to the energy sector throughout the
United States and internationally. ENGlobal operates through three business
segments: Automation, Engineering & Construction, and Field Solutions.
ENGlobal's Automation segment provides services related to the design,
fabrication & implementation of process distributed control and analyzer
systems, advanced automation, and related information technology.The
Engineering & Construction segment provides consulting services relating to
the development, management and execution of projects requiring professional
engineering as well as inspection, construction management, mechanical
integrity, field support, quality assurance and plant asset management.
ENGlobal's Field Solutions segment provides project management and staffing
for right-of-way and site acquisition, inspection, permitting, regulatory, and
legislative outreach. ENGlobal has approximately 1,800employees in 12offices
and 9cities. Further information about the Company and its businesses is
available at www.ENGlobal.com.

Safe Harbor for Forward-Looking Statements

The statements above regarding the Company's expectations regarding its
operations and certain other 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: (1)our ability to negotiate the terms of a waiver of defaults
and/or an extended forbearance period; (2)whether the exploration and
consideration of strategic alternatives will result in any transaction and
such transaction's effects on the Company and its stockholders; (3)our
ability to comply with the terms of the forbearance agreement with respect to
our credit facility with our Lender, including our ability to develop a plan
to restore compliance with the terms of such credit facility; (4)our ability
to obtain the cure or waiver of defaults under our credit facility with our
Lender and our existing letter of credit facility with Export-Import Bank of
the United States; (5)our ability to achieve profitability and positive cash
flow from operations; (6)our ability to collect accounts receivable and
process accounts payable in a timely manner; (7)our ability to respond
appropriately to the current worldwide economic situation and the resulting
decrease in demand for our services and competitive pricing pressure; (8)our
ability to achieve our business strategy while effectively managing costs and
expenses; (9)our ability to accurately estimate costs and fees on fixed-price
contracts; (10)the effect of changes in the price of oil; (11)delays related
to the award of domestic and international contracts; (12)our ability to
execute to our internal performance plans such as our productivity improvement
and cost reduction initiatives; (13)the effect of changes in laws and
regulations with which the Company must comply and the associated costs of
compliance with such laws and regulations, either currently or in the future,
as applicable; (14)the effect of changes in accounting policies and practices
as may be adopted by regulatory agencies, as well as by the FASB; (15)the
effect on our competitive position within our market area in view of, among
other things, increasing consolidation currently taking place among our
competitors; (16)our ability to win new business and convert those orders to
sales within the fiscal year in accordance with our annual business plan;
(17)achievement of our acquisition and related integration plans; and
(18)the uncertainties of the outcome of litigation. 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. In addition, 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.

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CONTACT: Natalie S. Hairston
         (281) 878-1000
         ir@ENGlobal.com

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