EEI Ecology And Environment,

BUFFALO, N.Y., Oct. 30 /PRNewswire-FirstCall/ -- HIGHLIGHTS -- Revenues for Ecology and Environment, Inc. (AMEX:EEI) for the fiscal year 2007 were $103.5 million, up 6% from the $98.1 million reported in fiscal year 2006. The Company reported net income for fiscal year 2007 of $3.1 million or $.73 per share, compared to $2.6 million or $.62 per share in the prior year. The Company reported revenue for the fourth quarter of fiscal year 2007 of $28.6 million, an increase of 23% from the $23.3 million reported in the fourth quarter of fiscal year 2006. Net income increased to $.16 per share for the fourth quarter of fiscal year 2007, up from the $.15 per share reported in the prior year. All earnings per share figures reflect the effect of the 5% stock dividend payable August 1, 2007. DETAILS -- The Company reported an increase of $5.4 million in revenue during fiscal year 2007 mainly attributable to increases in work performed by EEI's majority owned subsidiaries Walsh Environmental and E&E do Brasil. Revenues from Walsh Environmental were $24.4 million for fiscal year 2007, an increase of 36% from the $17.9 million reported in fiscal year 2006. The increase in Walsh Environmental revenues was mainly attributable to increased activity in its energy and mining sectors. Revenues from E&E do Brasil were $5.0 million for fiscal year 2007, an increase of $2.3 million or 85% over the prior year due mainly to increased work in the public and private power industries. Offsetting these increases were reduced revenues from United States Department of Defense (DOD) clients and contracts in the Middle East. In January 2007 the Company sold its interest in its shrimp farm operation, located in Costa Rica. After deducting costs of the sale, there was an after tax gain recorded on the sale of the farm of approximately $553,000 or $.14 per share and is included in discontinued operations. The Company recognized a tax benefit of $510,000 or $.12 per share during the fourth quarter of fiscal year 2007 due to the completion of Internal Revenue Service audits for fiscal years 2004 through 2006. Consolidated indirect costs increased $5.2 million during fiscal year 2007 as a result of revenue growth in subsidiaries, increased marketing and bid and proposal costs, and a more normalized staff utilization subsequent to the completion of the hurricane work in fiscal year 2006. The increase in marketing and bid and proposal work was due to the Company's commitment to invest in significant future opportunities in the alternative and clean technology energy sectors. The Company continues to increase business development costs worldwide to capitalize on the global demands for energy and environmental infrastructure improvements in concert with heightened concerns over global warming. A loss of $1.1 million ($146,000 after tax or $.03 per share) was recognized in the fourth quarter of fiscal year 2007 to reflect the estimated reduction in the value of the net assets of the Company's Venezuela subsidiary. This write-off was necessary due to a continuing deterioration in business and political conditions in Venezuela and the conclusion that the Company could no longer compete for contracts with its primary client, the government owned oil company. Ecology and Environment, Inc is headquartered in Lancaster, New York, a suburb of Buffalo. Its common stock is listed on the American Stock Exchange under the symbol EEI. E & E can be located on the World Wide Web at http://www.ene.com/. Financial Report - (In thousands, except per share information) Three Months Ending July 31, 2007 July 31, 2006 Revenue $28,621 $23,347 Net Income From Continuing Operations 652 636 Net Loss From Discontinued Operations - (47) Net Income 652 589 Net Income (Loss) Per Common Share: Basic Total Continuing Operations $0.16 $0.15 Discontinued Operations - (0.01) Net Income Per Common Share: Basic $0.16 $0.14 Net Income (Loss) Per Common Share: Diluted Continuing Operations $0.16 $0.15 Discontinued Operations - (0.01) Net Income Per Common Share: Diluted $0.16 $0.14 Fiscal Year Ending July 31, 2007 July 31, 2006 Revenue $103,490 $98,055 Net Income From Continuing Operations 2,506 2,723 Net Income (Loss) From Discontinued Operations 568 (140) Net Income 3,074 2,583 Net Income (Loss) Per Common Share: Basic Continuing Operations $0.60 $0.65 Discontinued Operations 0.13 (0.03) Net Income Per Common Share: Basic $0.73 $0.62 Net Income (Loss) Per Common Share: Diluted Continuing Operations $0.59 $0.65 Discontinued Operations 0.13 (0.03) Net Income Per Common Share: Diluted $0.72 $0.62 DATASOURCE: Ecology and Environment, Inc. CONTACT: Ronald Frank, +1-716-684-8060, for Ecology and Environment, Inc. Web site: http://www.ene.com/

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