ENGlobal Corporation announced that it has repaid its credit facility with Pacific Western Business Finance in full and entered into a new credit agreement with Alliance 2000 Ltd., the family limited partnership of ENGlobal Executive Chairman William A. Coskey, P.E. The new term loan facility provides for an initial term loan of $1,000,000 and, under certain conditions, an additional term loan of $250,000. During the one-year term of the loan, the Company will make interest-only payments on a quarterly basis. The loan carries an annual interest rate of 8.5% and has an origination fee of 0.5%, payable upon maturity.

Alliance 2000 Ltd. is the beneficial owner of more than 22% of the Company's issued and outstanding common stock and is controlled by William A. Coskey, P.E., the Company's Executive Chairman. In accordance with the charter of the Company's Audit Committee and the Company's policy on related party transactions, the loan documents and the resulting transactions were reviewed and approved by the Company's Audit Committee and determined in good faith to be on terms no less favorable to the Company than could be obtained from unrelated third parties and fair to the Company from a financial point of view, and were approved by all of the disinterested members of the Company's Board of Directors.