BUFFALO, N.Y., March 14 /PRNewswire-FirstCall/ -- HIGHLIGHTS - Ecology and Environment, Inc. (E&E, Amex: EEI) reported net income from all operations for the second quarter of fiscal year 2007 of $1.2 million or $.30 per share, compared to net income of $628,000 or $.15 per share in the second quarter of the prior year. The Company sold its shrimp farm operations in Costa Rica during the second quarter of fiscal year 2007 for a gain of approximately $553,000 or $.14 per share. Net revenues for the second quarter of fiscal year 2007 were $19.8 million, down slightly from the $19.9 million reported in fiscal year 2006. DETAILS - The Company had a solid second quarter of fiscal year 2007 as net revenues were steady despite the strong comparables in the prior year which included $3.5 million of hurricane work in the Gulf Coast and $.9 million of work on the Region 9 START contract which ended in fiscal year 2006. Gross margins increased in fiscal year 2007 due to higher margin work and increased revenues from the Walsh Environmental subsidiary. Walsh Environmental reported net revenues of $4.5 million during the second quarter of fiscal year 2007, up 32% from the $3.4 million reported in the prior year as a result of higher revenues from its energy, mining and transportation sectors. Net income from continuing operations for the second quarter of fiscal year 2007 was comparable with the second quarter of the prior year. The increase in gross margins was offset by higher indirect costs attributable to increased proposal work brought about by significant opportunities in the energy sector relating to alternative energy and clean technologies. The Company has also increased business development costs worldwide to capitalize on global energy opportunities. On January 9, 2007 the Company sold its interest in the shrimp farm in Costa Rica to the Roozen Group for $2,500,000 in cash. The farm had been written down to a carrying value of $1,500,000 as a result of the shutdown of the operation in July 2003. 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. 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 January 27, 2007 January 28, 2006 Gross Revenues $ 24,131 $ 24,029 Net Revenues 19,789 19,853 Net Income From Continuing Operations 619 656 Net Income (Loss) From Discontinued Operations 603 (28) Net Income 1,222 628 Net Income (Loss) Per Common Share: Basic Total Continuing Operations $ 0.15 $ 0.16 Discontinued Operations 0.15 (0.01) Net Income Per Common Share: Basic $ 0.30 $ 0.15 Net Income (Loss) Per Common Share: Diluted Continuing Operations $ 0.15 $ 0.16 Discontinued Operations 0.15 (0.01) Net Income Per Common Share: Diluted $ 0.30 $ 0.15 Six Months Ending January 27, 2007 January 28, 2006 Gross Revenues $ 48,325 $ 47,554 Net Revenues 40,692 40,128 Net Income From Continuing Operations 1,374 1,440 Net Income (Loss) From Discontinued Operations 569 (65) Net Income 1,943 1,375 Net Income (Loss) Per Common Share: Basic Continuing Operations $ 0.34 $ 0.36 Discontinued Operations 0.14 (0.02) Net Income Per Common Share: Basic $ 0.48 $ 0.34 Net Income (Loss) Per Common Share: Diluted Continuing Operations $ 0.34 $ 0.36 Discontinued Operations 0.14 (0.02) Net Income Per Common Share: Diluted $ 0.48 $ 0.34 DATASOURCE: Ecology and Environment, Inc. CONTACT: Ronald Frank, +1-716-684-8060, for Ecology and Environment, Inc. Web site: http://www.ene.com/

Copyright