Ecology and Environment, Inc. Reports 189% Increase in Earnings on Record Fiscal Year 2009 Revenues

BUFFALO, N.Y., Oct. 29, 2009 (GLOBE NEWSWIRE) -- HIGHLIGHTS - Ecology and Environment, Inc., EEI reported record revenues for fiscal year 2009 of $146.9 million, up 33% from the $110.5 million reported in the prior year. Net income increased 189% for fiscal year 2009 to $5.2 million or $1.31 per share ($1.28 per share diluted), compared to net income of $1.8 million or $.44 per share in fiscal year 2008.

DETAILS - "We've put up some good numbers this year," said Kevin Neumaier, President and CEO. "Record revenue, a nice increase in earnings, and being ranked #50 among America's one hundred hottest small cap companies by Fortune Small Business are impressive financial numbers. Our environmental numbers were impressive as well, with an 80% reduction in the carbon footprint of our global headquarters at a net cost savings in only 9 years. We are excited to be working toward an improved and greener global economy." E&E reported an increase of $36.4 million in revenue during fiscal year 2009 compared to the prior year. The increase in revenue was attributable to increased work in the Company's energy, environmental restoration, and federal government sectors.

Net income for fiscal year 2009 was $5.2 million or $1.31 per share ($1.28 per share diluted), compared to net income of $1.8 million or $.44 per share in fiscal year 2008. Gross margin increased during fiscal year 2009 as a result of increased revenues. Revenue less subcontract costs were $108.9 million for fiscal year 2009, an increase of $14.2 million or 15% from the $94.7 million reported in fiscal year 2008.

Fiscal year 2009 earnings include a net gain of $.25 per share attributable to a tax settlement in Kuwait, net of an additional charge to fully reserve the balance of accounts receivable from the Middle East work and a net gain of $.10 per share attributable to the settlement of outstanding indirect rate adjustments with the federal government. Excluding these items, earnings for all of fiscal year 2009 increased 118% to $.96 per share.

E&E reported revenue of $41.1 million during the fourth quarter of fiscal year 2009, an increase of $7.7 million or 23% from the $33.4 million reported in the fourth quarter of fiscal year 2008. The increase in revenue was attributable to increased work in the Company's energy, environmental restoration, and federal government sectors. Net income for the fourth quarter of fiscal year 2009 was $1.1 million or $.27 per share ($.26 per share diluted), compared to net income of $1.1 million or $.26 per share in fiscal year 2008.

The Company maintains reserves for annual indirect rate submittal adjustments due to FAR and CAS compliance reviews by the federal government which covered fiscal years 1996 through 2004. During the fourth quarter of fiscal year 2009, the Company settled outstanding indirect rate adjustments with the federal government. This settlement resulted in a gain of $562,000 ($410,000 after tax) which positively impacted the Company's earnings by $.10 per share.

This document contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act"). All statements other than statements of historical facts are statements that could be deemed forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Words such as "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," "continues," "may," variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. We undertake no obligation to revise or update any forward-looking statements for any reason. Further, information on risks and uncertainties is available in our filings with the Securities and Exchange Commission, which are incorporated by reference.

Ecology and Environment has completed over 45,000 projects for a wide variety of clients in 84 countries, providing environmental solutions in nearly every ecosystem on our planet. Ecology and Environment is listed on the NASDAQ under the symbol EEI and the information contained in this press release is available on the Company's website at www.ene.com/news and is located on the web at www.ene.com.