ENGlobal Provides Corporate Update

ENGlobal Provides Corporate Update

Houston, TX, Dec. 19, 2012  (GLOBE NEWSWIRE) -- ENGlobal Corporation  (NASDAQ: 
ENG),  a  leading  provider  of  energy-related  engineering  and   automation 
solutions, announced  today  that  it  entered into  a  "Second  Amendment  to 
Revolving Credit  and Security  Agreement, Waiver  and Forbearance  Extension" 
with its lender. The extension  will be in place  through April 30, 2013  and 
requires ENGlobal's  compliance  with  certain  terms  and  conditions.  This 
extended period is expected to allow ENGlobal's management sufficient time  to 
see the results of  the implementation of its  business improvement plan.  As 
previously reported, ENGlobal hired  a management consultant and  subsequently 
developed a plan to restore the Company's compliance with the revolving credit

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 
1,500employees 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  comply with  the  terms of  the  forbearance 
agreement with  respect to  our  revolving credit  facility with  our  Lender, 
including our  plan to  restore  compliance with  the  terms of  such  credit 
facility; (2)our ability  to realize the  benefits of the  sale of the  Field 
Solutions  segment,   including  our   ability  to   collect  unbilled   trade 
receivables;  (3)whether  the  exploration  and  consideration  of  strategic 
alternatives will result in any transaction and such transaction's effects  on 
the Company and its stockholders; (4)our ability to comply with the terms  of 
the forbearance agreement with respect  to our revolving credit facility  with 
our lender, including our ability to develop a plan to restore compliance with
the terms  of such  credit facility;  (5)our ability  to obtain  the cure  or 
waiver of defaults under our revolving credit facility with our lender and our
existing letter  of credit  facility  with Export-Import  Bank of  the  United 
States; (6)our ability to achieve  profitability and positive cash flow  from 
operations;  (7)our  ability  to  collect  accounts  receivable  and  process 
accounts payable in a timely manner; (8)our ability to respond  appropriately 
to the  current worldwide  economic situation  and the  resulting decrease  in 
demand for our services and  competitive pricing pressure; (9)our ability  to 
achieve our business strategy while  effectively managing costs and  expenses; 
(10)our  ability  to  accurately  estimate  costs  and  fees  on  fixed-price 
contracts; (11)the effect of changes in the price of oil; (12)delays related
to the  award of  domestic and  international contracts;  (13)our ability  to 
execute to our internal performance plans such as our productivity improvement
and cost  reduction  initiatives;  (14)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; (15)the effect of changes in accounting policies and practices
as may be adopted  by regulatory agencies,  as well as  by the FASB;  (16)the 
effect on our competitive  position within our market  area in view of,  among 
other things,  increasing  consolidation  currently  taking  place  among  our 
competitors; (17)our ability to win new business and convert those orders  to 
sales within the  fiscal year  in accordance  with our  annual business  plan; 
(18)achievement  of  our  acquisition  and  related  integration  plans;  and 
(19)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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