ENGlobal Announces Agreement to Sell its Midstream Inspection Division to Furmanite

ENGlobal Announces Agreement to Sell its Midstream Inspection Division to
Furmanite

Houston, TX, Dec. 11, 2012  (GLOBE NEWSWIRE) -- ENGlobal Corporation  (NASDAQ: 
ENG),  a  leading  provider  of  energy-related  engineering  and   automation 
services, announced today  that it  has reached  an agreement  on terms  under 
which ENGlobal's Midstream Inspection division  will be divested to  Furmanite 
America, Inc. ("FAI") a subsidiary of Furmanite Corporation.  The total  value 
of the transaction to ENGlobal is  expected to be approximately $6.5  million, 
consisting of cash at closing, retained working capital, and a promissory note
issued with a parent company guarantee.

ENGlobal intends  to use  the net  proceeds from  this transaction  to  reduce 
outstanding debt.  The transaction is  expected to close at year-end,  subject 
to lender approval and the completion of customary conditions.

"Once closed, this  sale ensures that  100% of management's  attention can  be 
applied to ENGlobal's  Engineering and Automation  segments," said William  A. 
Coskey, P.E., Founder,  Chairman and Chief  Executive Officer. "Since  August, 
ENGlobal has been focused  on divesting our  Field Solutions segment,  leading 
improvement initiatives, and implementing an organizational restructuring that
has resulted in a more efficient company."

ENGlobal announced  its  plan to  explore  divestiture options  of  its  Field 
Solutions segment, which  included both  its Land/Right of  Way and  Midstream 
Inspection divisions,  in  September  2012.  The  Company  will  complete  the 
divestiture within both the timeline and the estimated value attributed to the
segment by ENGlobal.

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 downstream
inspection, construction  management,  mechanical  integrity,  field  support, 
quality assurance  and plant  asset  management.  ENGlobal  has  approximately 
1,500 employees in  12 offices and  9 cities.  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 
Inspection  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 the Company's Revolving Credit  and 
Security Agreement,  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  the  Company's Revolving  Credit  and 
Security  Agreement  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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