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ENGlobal Completes Divestiture of Midstream Inspection Division

ENGlobal Completes Divestiture of Midstream Inspection Division

Houston, TX, Jan. 3, 2013 (GLOBE NEWSWIRE) -- ENGlobal Corporation (NASDAQ:
ENG), a leading provider of energy-related engineering and automation
services, announced today that it has closed the previously announced
agreement to divest its Midstream Inspection division to Furmanite America,
Inc. ("FAI") a subsidiary of Furmanite Corporation. As announced in December
2012, the total value of the transaction to ENGlobal was 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 closing of this transaction completes ENGlobal's
previously announced intent to divest its Field Solutions segment, which
included both its Land/Right of Way and Midstream Inspection divisions, as a
means of reducing outstanding bank indebtedness.

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 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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CONTACT: Natalie S. Hairston
         281-878-1000
         ir@englobal.com

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