Ecology and Environment, Inc., Fourth Quarter and Year-to-Date Earnings Down vs. Last Year

Ecology and Environment, Inc., Fourth Quarter and Year-to-Date Earnings Down
vs. Last Year

LANCASTER, N.Y., Nov. 14, 2013 (GLOBE NEWSWIRE) -- Ecology and Environment,
Inc., ("E&E" or the "Company") (Nasdaq:EEI) reported a consolidated net loss
of $3.8 million or $.90 per share for the fourth quarter of fiscal year 2013,
an increase of $2.9 million from the net loss of $0.9 million or $.23 per
share reported in the fourth quarter of the prior year. The net loss for the
fourth quarter increased $3.4 million from the loss of $0.4 million reported
for the third quarter of fiscal year 2013. Consolidated revenues of $29.7
million for the fourth quarter of fiscal year 2013 decreased $7.2 million or
19% from the $36.9 million reported in the fourth quarter of the prior year.

For the full fiscal year ended July 31, 2013, the Company reported a net loss
of $2.1 million or $.50 per share, which was down $2.9 million from net income
of $0.8 million reported for the prior fiscal year. Consolidated revenues for
fiscal year 2013 were $134.9 million, a decrease of $20.5 million or 13% from
the $155.4 million reported in fiscal year 2012.

Domestic revenue for fiscal year 2013 decreased 7% from the prior year. During
fiscal years 2013 and 2012, a stagnant U.S. economy significantly inhibited
the Company's ability to grow or to replace expiring projects in certain
market sectors which historically have been integral to our business, such as
energy transmission, mining and governments.

Foreign revenue for fiscal year 2013 decreased 24% from the prior year. During
fiscal years prior to 2013, the Company identified opportunities to expand in
Asia, the Middle East and Africa.Over that same period however, we
experienced significant collection risks and incremental related operating
costs that may have outweighed the benefits of operating within these
markets.As a result, the Company experienced significant volatility in its
earnings during fiscal years 2013, 2012 and 2011, primarily resulting from
contract adjustments that are recorded as adjustments to revenue.

In particular, we expanded significantly in China where the Company
experienced increased collection risks and expended resources that ultimately
may not be recovered.During fiscal year 2013, upon considering several
factors regarding revenue and contract receivables related to projects in
China, the Company recorded $6.3 million of contract adjustments as a
reduction of revenue, of which $4.8 million was recorded in the fourth quarter
of the year.

During fourth quarter of 2013, the Company also recorded a software impairment
charge of $0.8 million related to software that is not effectively used today
or expected to be useful in the long-term.Excluding the software impairment
charge, total operating expenses (excluding depreciation and amortization
expenses) decreased $15.9 million (11%) during fiscal year 2013, as compared
with the prior year.A significant portion of the decrease was a direct result
of lower volumes of project activity and operating revenues.Additionally,
during fiscal year 2013, 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 resulted in
significant cost savings during fiscal year 2013, and are expected to result
in reductions in direct and indirect operating expenses in fiscal year 2014.

More about E & E and its activities worldwide can be found on the Company's
website at www.ene.com.

Financial Report --
                                                                 
(In thousands, except per share information)
                                       Three Months Ending
                                       July 31, 2013 July 31, 2012 % Increase
                                                                 
Revenue                                 $29,745     $36,914     -19%
                                                                 
Revenue less Subcontract Costs          $23,291     $29,270     -20%
                                                                 
Total Operating Expenses (excluding     $34,305     $35,954     -5%
depreciation and amortization)
                                                                 
Net Loss                                $(3,843)    $(945)      307%
                                                                 
Net Loss Per Common Share: Basic and    $(0.90)     $(0.23)     291%
Diluted

                                                                 
                                       Fiscal Year Ending
                                       July 31, 2013 July 31, 2012 % Increase
                                                                 
Revenue                                 $134,937    $155,410    -13%
                                                                 
Revenue less Subcontract Costs          $109,895    $123,095    -11%
                                                                 
Total Operating Expenses (excluding     $133,406    $148,466    -10%
depreciation and amortization)
                                                                 
Net (Loss) Income                       $(2,130)    $774        -375%
                                                                 
Net (Loss) Income Per Common Share:     $(0.50)     $0.18       -378%
Basic and Diluted


CONTACT: Mr. Ronald L. Frank
         Executive Vice President
         (716) 684-8060
         rfrank@ene.com