ENGlobal Announces Two Acquisitions

ENGlobal Corporation's subsidiary has completed the acquisition of certain contract rights and equipment from Instrument Services Company, LLC ("ISC") based in Oklahoma. ISC specializes in providing technical support to the oil and gas industry, power generation and other processing environments. No liabilities were assumed as a result of this transaction.

This new business unit will operate as the Instrument Services Division of ENGlobal Design Group Inc., a subsidiary of ENGlobal Corporation. ISC is known for utilizing its skilled technicians for various project and maintenance work, specifically in the areas of process controls, start-up and commissioning support, equipment installation and relocation, equipment controls upgrades, among others.

The Company also announced that its wholly owned subsidiary, ENGlobal Systems Inc. ("ESI"), has purchased certain contract rights and other assets of InfoTech Engineering Company ("InfoTech"), headquartered in Baton Rouge, La. InfoTech offers information consulting and control systems integration services and specializes in automation and process control. InfoTech's primary experience is in the onshore and offshore oil & gas and petrochemical industries. No debt or liabilities have been assumed as a result of this transaction.

Including these two acquisitions, ENGlobal has completed five asset acquisition transactions during 2004. Previously this year, the Company completed transactions expected to improve its capabilities in the areas of inspection services, automated fuel handling systems and government contracting.

ENGlobal Corporation's chairman and chief executive officer, Michael L. Burrow, P.E., stated, "These acquisitions, albeit small in scope, bring expertise in their respective fields. We see the advantages for these acquisitions as three-fold: (1) each company offers a unique industry niche; (2) the synergies complement ENGlobal's organizational structure; and (3) the acquisitions are consistent with our strategy of gaining 'vertical' growth by adding new service capabilities for our clients."