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Ecology and Environment, Inc., Third Quarter Earnings Down and Year-To-Date Earnings Unchanged vs. Last Year

Ecology and Environment, Inc., Third Quarter Earnings Down and Year-To-Date
Earnings Unchanged vs. Last Year

LANCASTER, N.Y., June 21, 2013 (GLOBE NEWSWIRE) -- Ecology and Environment,
Inc., ("E & E" or the "Company") (Nasdaq:EEI) reported consolidated revenues
for the third quarter of fiscal year 2013 of $32.2 million, a decrease of $3.8
million or 11% from the $36.0 million reported in the third quarter of fiscal
year 2012. Revenue less subcontract costs of $26.1 million for the current
quarter decreased $3.9 million or 13% compared to the third quarter of fiscal
year 2012.E & E reported a net loss of $0.4 million or $.10 per share for the
third quarter of fiscal year 2013, a decrease of $0.5 million from the net
income of $0.1 million or $.01 per share reported in the third quarter of the
prior year.Compared to the second quarter of fiscal year 2013, net income for
the third quarter decreased $2.3 million.

Consolidated revenues for the first nine months of fiscal year 2013 were
$105.2 million, a decrease of $13.3 million or 11% from the $118.5 million
reported in the first nine months of fiscal year 2012.Revenue less
subcontract costs of $86.6 million for the first nine months of fiscal year
2013 decreased $7.2 million or 8% compared to the same period in the prior
fiscal year. Net income of $1.7 million or $.40 per share for the first nine
months of 2013 was relatively unchanged from net income reported for the same
period last year.

E & E's expansion to countries in the Middle East, Africa and Asia over the
past several years has resulted in heightened political, regulatory, and
cultural risks within these regions in comparison with similar risks
associated with its business in the United States, Canada and South
America.The Company has experienced slow and inconsistent collections from
clients in the Middle East, Africa, and Asia, which in turn has had a
significant impact on the comparability of its quarterly and annual results
due to large swings in allowances established to record contract receivables
at expected amounts.

In January 2013, E & E announced that it had entered into a contract to
provide environmental consulting services to a client in Asia.This contract
replaced a previous agreement dated in fiscal year 2011.Through April 30,
2013, the Company encountered significant transitional issues and delays in
collecting payments due to it under this agreement.After considering the age
of contract receivables, non-payment of advanced payments owed to us under the
agreement and the lack of any other cash collections to date, the Company
recorded $0.4 million and $1.5 million of additional allowance for doubtful
accounts and contract adjustments related to these projects during the three
months and nine months ended April 30, 2013, respectively.Management is
actively working with the client to validate the ongoing viability of these
projects, and to procure cash payments due to us.Management is also
considering potential actions by the Company in the event of continued delays
in receiving cash payments owed to us, which may include recording additional
allowance for doubtful accounts and contract adjustments and possible
termination of project activity in future reporting periods.

During the first nine months of 2013, E & E management critically reviewed
technical and indirect staffing levels, other expenses necessary to support
current project work levels, and key administrative processes.As a result of
this review, the Company reduced staff counts in various technical and
indirect departments and reduced utilization of contracted services.These
reductions are expected to decrease operating expenses by $2.5 to $3.0 million
annually.E & E management continues to critically evaluate its organizational
and cost structure to identify ways to operate more efficiently and cost
effectively.

E & E has completed over 50,000 projects for a wide variety of clients in 122
countries, providing environmental solutions in nearly every ecosystem on our
planet.E & E is listed on the NASDAQ under the symbol EEI and the information
contained in this press release is available on the Company's website at
www.ene.com.

                                                            
Financial Report -                                           
                                                            
(In thousands, except per share information)                 
                                              Three Months Ending
                                              April 30, 2013 April 30, 2012
                                                            
Revenue                                        $32,219      $36,011
                                                            
Revenue less Subcontract Costs                 $26,058      $30,040
                                                            
Net Income                                     $(441)       $56
                                                            
Net Income Per Common Share: Basic and Diluted $(0.10)      $0.01

                                                            
                                              Nine Months Ending
                                              April 30, 2013 April 30, 2012
                                                            
Revenue                                        $105,192     $118,496
                                                            
Revenue less Subcontract Costs                 $86,604      $93,825
                                                            
Net Income                                     $1,713       $1,719
                                                            
Net Income Per Common Share: Basic and Diluted $0.40        $0.41


CONTACT: Mr. John Mye, P.E.
         Vice President, Treasurer, and Chief Financial Officer
         (716) 684-8060
         jmye@ene.com