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EnGlobe Corp. Announces Second Quarter Highlights and Financial Results

QUEBEC CITY, QC AUGUST 14, 2009 - EnGlobe Corp. ("EnGlobe" or the "Corporation") (TSX: EG), today announced financial results for the second quarter ended June 30, 2009.

Second Quarter Highlights

- $32.2 million in revenues;
- Adjusted EBITDA increased by $6.8 million to reach $3.1 million;
- Gross profit increased by 99.3% to reach $8.6 million;
- Successful startup of second French soil treatment facility in Lyon on schedule and fully operational in May 2009.

"The second quarter was marked by an efficient execution of our restructuring plan announced in the fall of 2008 and reflects our ongoing commitment to manage our business with strong discipline. I'm encouraged by our operating results for this quarter and the first half of the year. While delivering on prior commitments, we are mindful of challenges that may still lie ahead, such as a difficult economic environment and uncertainty in the UK market. We remain focused on improving our operational efficiency and increasing productivity", commented Mr. André Héroux, President and CEO of EnGlobe. "We have also continued to prepare for future growth opportunities and eventual market improvement, with the completion of the construction of our second soil treatment facility in France, located near Lyon that became fully operational in mid-May 2009. In addition, while continuing to lower our cost structure, we have secured new business projects in France, Alberta, Québec and Northern Canada. I expect that we will see further benefits from these efforts as 2009 progresses" added Mr. Héroux.

Second Quarter Results

In the second quarter, EnGlobe generated revenues of $32.2 million compared to $38.2 million for the same period last year, a decrease of $6.0 million. Organic Waste Management ("OWM") experienced a planned decrease of revenue that totaled $7.4 million in the second quarter. As part of the Corporation's previously communicated reorganization plan, OWM is now concentrating on activities that generate positive financial contribution. This has resulted in the phase out of certain unprofitable contracts and business activities, which has translated into lower OWM revenues but higher OWM margins with reduced risk. The Site Assessment and Remediation ("SAR") division generated $23.6 million in revenue in the second quarter, which represented a $1.3 million increase over the same period last year. In particular, robust SAR activities in Northern Canada, Alberta, Québec and France more than offset difficult market conditions in the UK.

In the second quarter of 2009, adjusted EBITDA was $3.1 million compared to a loss of $3.7 million in the quarter ended June 30, 2008. The increase was principally the result of the improved contribution from the OWM segment, higher contribution from the SAR segment (from the Canadian and France operations in particular) and a lower cost structure following the implementation of the reorganization plan. Gross profit increased by 99.3% to reach $8.6 million.

A $1.8 million net loss from continuing operations was incurred in the second quarter of 2009 compared to a net loss of $22.5 million in the quarter ended June 30, 2008. The significant improvement was largely due to the one-time non-cash charges that were incurred in the second quarter of 2008 related to the OWM segment, combined with overall better operational performance as explained above.

Cash generated by operating activities in the second quarter was $2.0 million compared with cash used of $9.1 million in the same period last year, an improvement of $11.1 million.

"While we are not immune to the effects of the economy, we remain focused on our efforts to manage expenses responsibly and on investing in technical innovation to drive growth in our core and new businesses. I am confident, we will emerge as an even stronger industry leader than we are today. I believe that we are well-positioned to continue delivering long-term value to our customers and our stockholders", said André Héroux, President and CEO of EnGlobe Corp.

Year-to-date Results

For the first six months of 2009, EnGlobe generated revenues of $57.0 million, compared to $62.5 million a year earlier, a decrease of $5.5 million or 8.8%. This decrease was primarily due to the restructuring plan that took place in the OWM segment as explained above.

Adjusted EBITDA for the first six months of the year was significantly higher at $3.8 million compared to a loss of $4.9 million for the same period in 2008. This increase was principally the result of the higher contribution of the OWM segment and higher contribution of the SAR segment, combined with an overall lower cost structure.

For the first six months of 2009, EnGlobe reported a net loss of $5.5 million, compared to a net loss of $26.5 million for the same period in 2008. As explained above, the increase was largely due to the one-time non-cash charges that were incurred in the second quarter of 2008 related to the OWM segment, combined with overall better operational performance. Cash generated by operating activities in the first six months of 2009 was $4.4 million compared with cash used of $4.4 million in the same period last year, an improvement of $8.8 million.

Management's Discussion and Analysis containing a full analysis of financial results and Financial Statements can be accessed at www.sedar.com.

About EnGlobe Corp.

EnGlobe Corp. is a leading international integrated environmental services company specializing in the management of contaminated soils and organic based waste streams, with an emphasis on beneficial reuse. EnGlobe offers cost-effective solutions to municipal, commercial and industrial clients in Canada, the north-eastern United States, the United Kingdom and France through its subsidiaries: Biogénie and Celtic Technologies Limited for site assessment and remediation, GSI Environment Inc. for organic waste management, and Tanknology Canada Inc. for tank testing and calibration. Shares of EnGlobe trade on the Toronto Stock Exchange under the ticker symbol EG. Additional information is available at www.englobecorp.com.

Forward-Looking Statements

This press release contains certain forward-looking statements. Such statements relate to, among other things, sales growth, expansion and growth of the Corporation's business, future capital expenditures and the Corporation's business strategy. Forward-looking statements are subject to inherent uncertainties and risks including, but not limited to: general industry and economic conditions, changes in the Corporation's relationships with its suppliers, pricing pressures and other competitive factors, the availability and costs of fuels and utilities, the results of the Corporation's ongoing efforts to improve cost effectiveness, changes in regulatory requirements affecting the Corporation's business and the availability and terms of financing. Other Risk Factors are set out and described in the Corporation's Annual Information Form which is available at www.sedar.com. Consequently, actual results and events may vary significantly from those included in, contemplated by or implied by such forward-looking statements. In evaluating forward-looking statements, readers should specifically consider the various factors that could cause actual events or results to differ materially from such forward-looking statements.

Contacts:

Mario Saucier
Investor Relations
T: +1-450-929-4949, ext. 222 
msaucier@englobecorp.com 

Marie-Chantal Turcotte
Corporate Communications
T: +1- 418-781-0191, ext. 5235
mcturcotte@englobecorp.com