Ecology and Environment, Inc., First Quarter Earnings Up vs. Last Year

Ecology and Environment, Inc., First Quarter Earnings Up vs. Last Year

LANCASTER, N.Y., Dec. 16, 2013 (GLOBE NEWSWIRE) -- Ecology and Environment,
Inc., ("E & E" or the "Company") (Nasdaq:EEI) reported consolidated net income
of $0.4 million or $.09 per share for the first quarter of fiscal year 2013,
an increase of $0.2 million from the net income of $0.2 million or $.06 per
share reported in the first quarter of the prior year.

Consolidated revenues of $34.7 million for the current quarter decreased $2.1
million or 6% from $36.8 million reported in the first quarter of the prior
year. Lower revenues resulted primarily from lower project work volume in
energy and mining sectors within domestic and certain foreign markets.

Consolidated total operating expenses, excluding depreciation and amortization
expenses, decreased $2.5 million or 7% during the current quarter as compared
with the same quarter last year. In addition to lower direct project expenses
associated with lower work volume, the Company experienced the positive
earnings impact of managed workforce reductions undertaken during fiscal year

Compared to the fourth quarter of fiscal year 2013, net income for the current
quarter increased $4.2 million. After 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 during
fiscal year 2013, including $4.8 million in the fourth quarter of 2013. By
comparison, the Company did not record any significant contract adjustments
during the first quarter of 2014.

Also during fourth quarter of 2013, the Company recorded a software impairment
charge of $0.8 million. During the first quarter of 2014, as a result of a
decision to abandon the current operating software system and convert to a new
system effective August 1, 2014, the Company accelerated the amortization of
the current system, which resulted in $0.6 million of incremental depreciation
and amortization expense during the current quarter, as compared with the
fourth quarter of 2013 and previous quarters.

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

Financial Report -                                                  
(In thousands, except per share information)                         
                                   Three Months Ending
                                   October 31, 2013 October 31, 2012 % Change
Revenue, net                        $34,749        $36,822        -6%
Revenue less subcontract costs      $28,903        $29,806        -3%
Total operating expenses (excluding $32,743        $35,264        -7%
depreciation and amortization)
Net income attributable to Ecology  $380           $243           56%
and Environment, Inc.
Net income per common share: basic  $0.09          $0.06          50%
and diluted

CONTACT: Mr. H. John Mye III
         Chief Financial Officer
         (716) 684-8060