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EnGlobe Corp. Announces Fourth Quarter Results

Burlington, ON – February 25, 2008 EnGlobe Corp. (TSX: EG), Canada’s leading integrated environmental services company, today announced its results for the fourth quarter and full year ended December 31, 2007.

In the fourth quarter, revenue was $39.8 million compared with $25.2 million in the quarter ended December 31, 2006, an increase of 58% that was primarily a result of the acquisition of Biogénie S.R.D.C. Inc. in late November, 2006.

Gross operating profit in the quarter was $12.2 million compared with $7.0 million in the quarter ended December 31, 2006. Gross operating profit margin for the quarter was 31% compared with 28% in the same period of 2006. The increase in gross operating profit was largely attributable to higher revenues and gross operating profit from Biogénie’s soil assessment and remediation activities, moderated by reduced margins from the activities of GSI, the Company’s organic waste management segment.

EBITDA (earnings before income tax, depreciation and amortization) for the quarter was $3.8 million compared with $3.1 million in the quarter ended December 31, 2006.

A $1.0 million net loss from continuing operations was incurred in the latest quarter compared with $1.0 million of net income in the quarter ended December 31, 2006. The decrease was primarily attributable to restructuring costs of $1.6 million, larger depreciation and amortization expenses as well as higher interest charges, offset by a higher income tax recovery, mostly from previously unrecorded future tax benefits relating to the Company’s European operations. 

For the quarter ended December 31, 2007, cash flow from continuing operations was $1.0 million, with non-cash working capital changes generating $2.3 million. “EnGlobe continued its progression in its fourth quarter to a larger and more diversified environmental services business with substantial revenue and EBITDA growth over last year,” said Aline Belanger, Interim President and CEO of EnGlobe. “The management team remains focused on completing the integration of its operations and pursuing EnGlobe’s strategy and key initiatives.”

Results for the Year ended December 31, 2007

EnGlobe reported revenue of $149.1 million for the year, compared with revenue of $69.9 million for the year ended December 31, 2006, an increase of 113%. The increase was primarily the result of 12 months of expanded site assessment and remediation activities. The Biogénie activities contributed $89.2 million of revenue in 2007 compared with approximately $6.7 million in 2006.

Gross operating profit for the year was $43.9 million compared with $19.2 million for the year ended December 31, 2006. Gross operating profit margin for the year was 29% compared with 27% in 2006. The increase in gross operating profit was largely attributable to higher revenues and gross operating profit from Biogénie’s operations, moderated by reduced margins from the activities of GSI.

EBITDA for the year ended December 31, 2007 was $14.7 million compared with $6.6 million for 2006. The increase was attributable to improved gross margin as a result of the Biogénie acquisition.

During the latest year, the Company incurred $3.7 million in restructuring and other charges, incurred primarily as a result of the changes in the offices of the Chief Executive Officer and the Chief Financial Officer, together with employee recruitment and employee termination costs following the acquisition of Biogénie.

The Company reported a net loss of $3.0 million net loss from continuing operations was incurred for the year compared with a $0.2 million net loss in the year ended December 31, 2006. The decrease was primarily attributable to the restructuring and other charges, larger depreciation and amortization expenses as well as higher interest charges, offset by the recognition of future income tax benefits.

For the year ended December 31, 2007, cash used in continuing operations was $6.1 million compared with $4.1 million in 2006. Cash used in operating activities reflects the Company’s net loss for the period net of non-cash charges for depreciation and amortization, stock-based compensation, non-cash interest charges, loss on disposal of property, plant and equipment, an unrealized loss on foreign exchange, the future income tax recovery and the change in our non-cash working capital.
EnGlobe Corp.’s full consolidated financial statements, notes, and Management’s Discussion and Analysis for twelve months ended December 31, 2007 are available at www.sedar.com.

Annual Meeting of Shareholders

EnGlobe Corp. will hold its annual and special meeting of shareholders at 9:00 a.m. ET on April 28, 2008 at the Reimer Tower Conference Room, First Floor, 5500 North Service Road, Burlington, Ontario. Company Management will discuss results for 2007 and its outlook for 2008.

About EnGlobe Corp.

EnGlobe Corp. is Canada’s leading integrated environmental services company specializing in the management of organic-based waste streams and contaminated soils, with an emphasis on beneficial reuse.  EnGlobe offers cost-effective solutions to municipal, commercial and industrial clients in Canada, the northern United States, England and France through its subsidiaries: Biogénie S.R.D.C. Inc. for site assessment and remediation, GSI Environment Inc. for organic waste management, and; Tanknology Canada Inc. for tank testing and calibration. Until April, 2007, the Company was named Environmental Management Solutions Inc.

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 Company’s business, future capital expenditures and the Company’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 Company’s relationships with its suppliers, pricing pressures and other competitive factors, the availability and costs of fuels and utilities, the results of the Company’s ongoing efforts to improve cost effectiveness, changes in regulatory requirements affecting the Company’s business and the availability and terms of financing. Other Risk Factors are set out and described in the Company’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.

For further information, contact:

Investors:    
Aline Belanger     
Interim President and Chief Executive Officer   
EnGlobe Corp.      
905-335-2100 x 5026

Media:
John Lute
Lute & Company
416-929-5883 x 222