ENGlobal Finalizes Divestiture of Land and Right of Way Division

ENGlobal Finalizes Divestiture of Land and Right of Way Division

Houston, TX, Nov. 5, 2012 (GLOBE NEWSWIRE) -- ENGlobal Corporation (NASDAQ:
ENG), a leading provider of energy-related project delivery solutions,
announced today that it successfully completed the divestiture of its Land and
Right of Way division to Steele & Company, LP based in Tyler, Texas
("Steele"). Pursuant to the final agreement, the Company will retain
approximately $4.5 million of this division's working capital at the time of
closing, in addition to receiving a $3.0 million promissory note payable over
four years from Steele. Subject to the agreement, the purchase price was
adjusted based on the net working capital of the division at the time of
closing. ENGlobal intends to use the net proceeds from this transaction to
reduce outstanding debt.

As previously reported, the original agreement between ENGlobal and Steele
provided for the sale of substantially all of the assets of both divisions of
its Field Solutions segment, Land and Right of Way, and Inspection. However,
the Inspection division was not sold as part of the final transaction, and
ENGlobal will retain the Tulsa-based business for the foreseeable future. The
Company expects no changes to the personnel of its Inspection operation as a
result of this transaction.

About ENGlobal

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 two business
segments: Automation and Engineering & Construction. 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 has approximately
1,500employees 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 realize the benefits of the sale of the Land
and Right of Way division, including our ability to collect unbilled trade
receivables; (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

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