ENGlobal Announces Expansion of Its Department of Defense Contract

ENGlobal Announces Expansion of Its Department of Defense Contract

Solidifies 10 Year Client Relationship

HOUSTON, Nov. 4, 2013 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading
provider of energy-related engineering and automation services, today
announced that its wholly-owned subsidiary, ENGlobal Government Services, Inc.
based in Tulsa, Oklahoma, has been awarded an additional delivery order on one
of its existing multi-year contracts from the U.S. Department of Defense. The
value of the award to ENGlobal from the Space and Naval Warfare Systems Center
(SSC) Atlantic is estimated to be approximately $7.0 million.

As previously reported in July 2012, ENGlobal was awarded an
indefinite-delivery/indefinite-quantity (ID/IQ), cost-plus/fixed-fee contract
for technical and maintenance services for automated tank gauging and
automated fuel handling equipment (AFHE). Under the scope of the new delivery
order, ENGlobal expects to perform engineering and design services to
maintain, repair, and/or rebuild the fuel handling equipment of the Naval
Supply Fleet Logistics Command Center in Pearl Harbor, Hawaii.

"We are successfully being awarded a steady mix of business, including this
delivery order by the U.S. Department of Defense," said Mr. William A. Coskey,
P.E., Chairman and Chief Executive Officer of ENGlobal. "The Company is
focused on improving the profit mix of its operations and maintaining overhead
discipline. We are excited about our growth potential after recent
divestitures, together with select project opportunities. We believe this
strategy, plus our strong financial condition, puts us in a good competitive
position going forward."

About Space and Naval Warfare Systems Center - Atlantic

As the Navy's Information Dominance systems command, Space and Naval Warfare
Systems Center Atlantic designs, develops and deploys advanced communications
and information capabilities for the warfighter. With more than 8,900
acquisition professionals located around the world and close to the fleet, the
organization is at the forefront of research, engineering and support services
that provide vital decision superiority for the warfighter. Please visit
www.public.navy.mil/spawar for further information about SPAWAR.

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. Within the Engineering & Construction segment,
ENGlobal's Government Services group provides engineering, design,
installation and operation and maintenance of various government, public
sector and international facilities, and specializes in the turnkey
installation and maintenance of automation and instrumentation systems for the
U.S. Defense industry worldwide. 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 successful execution of this project award and our receipt
of prompt payment for the services we render to our client; (2)our ability to
comply with the terms under the new credit facility; (3)our ability to
achieve profitability and positive cash flow from operations; (4)our ability
to collect accounts receivable and process accounts payable in a timely
manner; (5)our ability to respond appropriately to the current worldwide
economic situation and the resulting decrease in demand for our services;
(6)our ability to achieve our business strategy while effectively managing
costs and expenses; (7)our ability to accurately estimate costs and fees on
fixed-price contracts; (8)the effect of changes in the price of oil;
(9)delays related to contract awards; (10)our ability to execute to our
internal performance plans such as our productivity improvement and cost
reduction initiatives; (11)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; (12)the effect of changes in accounting policies and
practices as may be adopted by regulatory agencies; (13)the effect on our
competitive position within our market area in view of, among other things,
increasing consolidation currently taking place among our competitors and
competitive pricing pressure; and (14)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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