ENGlobal Finalizes Sale of Gulf Coast Operations

ENGlobal Finalizes Sale of Gulf Coast Operations

Enters Into New $10 Million Credit Facility

HOUSTON, Aug. 30, 2013 (GLOBE NEWSWIRE) -- ENGlobal Corporation (Nasdaq:ENG),
a leading provider of energy-related engineering and automation services,
announced today that it successfully completed the sale of its Gulf Coast
engineering and in-plant operations to Furmanite America, Inc. ("FAI"), a
subsidiary of Furmanite Corporation (NYSE:FRM) ("Furmanite"). The total
consideration of the transaction to ENGlobal was approximately $20 million,
consisting primarily of cash funded at closing. The Company will use the cash
proceeds from the transaction to repay its outstanding debt under its existing
credit facility and for working capital purposes.Further terms of the
transaction were not disclosed.

ENGlobal will retain its Engineering operations and the entirety of its
Automation operations located in Houston, TX, Tulsa, OK, Mobile, AL, Denver,
CO, and Chicago, IL, which perform project execution services primarily to the
energy industry.The Company previously announced that it intended to
concentrate on its core Engineering and Automation segments in these markets
and target specific engineered solutions, utilizing both in-house and third
party intellectual property.

ENGlobal also announced that it has entered into a one year, $10 million
credit facility with its lender, which will be used for working capital
purposes, as needed, and will allow the Company additional time to analyze its
long-term capital needs. 

"The completion of this transaction with Furmanite is a significant milestone
for ENGlobal," said Mr.William A. Coskey, P.E., Chairman and Chief Executive
Officer of ENGlobal. "Now, as a stronger company, we plan to return our
attention to strategic growth.I would like to personally thank all of our
employees, especially those in our Gulf Coast operations, for their patience
throughout this process and commend the transition team for their efforts."

Mr. Coskey, continued."I have great respect for Furmanite's management team
and have no doubt that our Gulf Coast employees are in good hands. We look
forward to working with Furmanite on future projects."

About ENGlobal

ENGlobal (Nasdaq:ENG) is a provider of engineering and related project
services primarily to the energy sector throughout the United States and
internationally.ENGlobal operates through two business segments: Automation
and Engineering.ENGlobal's Automation segment provides services related to
the design, fabrication and implementation of advanced automation, control,
instrumentation and process analytical systems.The Engineering segment
provides consulting services for the development, management and execution of
projects requiring professional engineering, construction management, and
related support services.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 under the new credit
facility; (2)our ability to receive the anticipated benefit from the
divestiture of our Gulf Coast engineering and in-plant operations; (3)our
ability to achieve profitability and sustainable positive cash flow from our
operations; (4)the effect of changes in accounting policies and practices as
may be adopted by regulatory agencies, as well as by the Financial Accounting
Standards Board; (5)the effect of changes in the business cycle and downturns
in local, regional and national economy and our ability to respond
appropriately to the current worldwide economic financial situation;(6)the
effect on the Company's competitive position within its market area in view
of, among other things, the increasing consolidation within its services
industries, including the increased competition from larger regional and
out-of-state engineering and professional service organizations; (7)the
effect of increases and decreases in oil prices; (8)the availability of parts
from vendors; (9)our ability to collect accounts receivable in a timely
manner; (10)our ability to accurately estimate costs and fees on fixed-price
contracts; (11)our ability to hire and retain qualified personnel; (12)our
ability to retain existing customers and get new customers; (13)our ability
to mitigate losses; (14)our ability to achieve our business strategy while
effectively managing costs and expenses; (15)our ability to estimate exact
project completion dates; (16)our ability to effectively monitor business
done outside of the United States; (17)our ability to realize the benefits of
the sale of our Field Solutions segment, including our ability to collect
accounts receivables; (18)the performance of the energy sector; and (19) 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. The Company cautions that the
foregoing list of important factors is not exclusive. 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.Also, the information contained in this press
release is subject to the risk factors identified in the Company's most recent
Form 10-K.

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