ENGlobal Awarded Two Fuel Systems Upgrade Projects Totaling $6 Million-Plus

Houston, Dec. 20, 2019 — ENGlobal (NASDAQ: ENG), a leading provider of engineered modular solutions, today announced that its wholly-owned subsidiary, ENGlobal Government Services, Inc. (EGS), has won two task orders from the Defense Logistics Agency (DLA). These assignments, which are expected to produce more than $6 million in revenue, arise from ENGlobal’s position as one of three prime contractors under the DLA’s $124 million, five-year Automated Fuel Handling Equipment (AFHE) multiple-award contract.

EGS’s work on these task orders, which will be carried out over the next year, will include technology upgrades and refreshes of existing AFHE systems at two U.S. military bases. Today’s announcement follows one made by ENGlobal on November 25, 2019 detailing the company’s receipt of an $11.5 million contract from the DLA for the maintenance of the military’s Automated Fuel Handling Equipment worldwide.

Including today’s award, ENGlobal’s total backlog, which represents an estimate of booked projects that the company has not completed, is approximately double the $29.2 million backlog the company started calendar 2019 with.

“We are honored to have won the first two task orders to be awarded by the DLA under its $124 million multiple award contract, which we received last June,” said EGS Senior VP John Kratzert. “Our Company is very proud to further its 15-year history of providing critical fueling solutions to the U.S. Military, leveraging the experience and expertise in our Denver and Tulsa offices.”

William A. Coskey, P.E., ENGlobal’s Chairman and CEO stated, “We have been refocusing the Company on projects with larger scopes of work and while this has taken some time and is still incomplete, we are beginning to see the result in our backlog. Going into next year, the significantly increased backlog combined with increased profit margins in certain of our operations should result in an increased run rate of revenue and should allow our Company to begin producing profitable results.”