Ecology and Environment, Inc. Reports Earnings for the Third Quarter of Fiscal Year 2007

BUFFALO, N.Y., June 13  /PRNewswire-FirstCall/ -- HIGHLIGHTS - Ecology and Environment, Inc. (E&E, Amex: EEI) reported net income from all operations for the third quarter of fiscal year 2007 of $480,000 or $.12 per share, down from the net income of $619,000 or $.15 per share reported in the third quarter of the prior year. Revenue for the third quarter of fiscal year 2007 was $26.5 million, down slightly from the $27.2 million reported in fiscal year 2006.

DETAILS

The Company reported a decrease of $610,000 in revenue during the third quarter of fiscal year 2007 mainly attributable to a $3.6 million decrease in work performed on contracts associated with the relief efforts for the Gulf Coast hurricanes and a $.4 million decrease in work performed on the Company's Region 9 START contract which ended in fiscal year 2006. However, gross margins increased during the third quarter of fiscal year 2007 due to an increase in private sector work and an increase in revenues from the Walsh Environmental subsidiaries and E&E do Brasil. Walsh Environmental reported revenue of $6.5 million during the third quarter of fiscal year 2007, up 41% from the $4.6 million reported in the prior year as a result of higher revenues from its energy, mining and transportation sectors. E&E do Brasil reported revenue of $1.2 million during the third quarter of fiscal year 2007, up 71% from the $.7 million reported in the prior year due to energy related projects.

Net income from all operations for the third quarter of fiscal year 2007 was $480,000, a decrease of 22% from the $619,000 reported in the third quarter of fiscal year 2006. The increase in gross margins was offset by higher indirect costs incurred by the parent company. The increase in indirect costs was mainly attributable to a decrease in staff utilization for the parent company and increased bid and proposal work brought about by significant opportunities in the energy sector relating to alternative energy and clean technologies. The Company has continued to increase business development costs worldwide to capitalize on the global demands for energy and environmental infrastructure improvements. This is brought about by Global Warming concerns and the need to find alternative energy sources.

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
                                            April 28, 2007    April 29, 2006

  Revenue                                        $26,544           $27,154

  Net Income From Continuing Operations              480               647
  Net Loss From Discontinued Operations              -                 (28)
  Net Income                                         480               619

  Net Income (Loss) Per Common Share: Basic
     Total Continuing Operations                   $0.12             $0.16
     Discontinued Operations                         -               (0.01)
     Net Income Per Common Share: Basic            $0.12             $0.15

  Net Income (Loss) Per Common Share: Diluted
     Continuing Operations                         $0.12             $0.16
     Discontinued Operations                         -               (0.01)
     Net Income Per Common Share: Diluted          $0.12             $0.15



                                                     Nine Months Ending
                                            April 28, 2007    April 29, 2006

  Revenue                                        $74,869           $74,708

  Net Income From Continuing Operations            1,837             2,087
  Net Income (Loss) From Discontinued
   Operations                                        569               (93)
  Net Income                                       2,406             1,994

  Net Income (Loss) Per Common Share: Basic
     Continuing Operations                         $0.46             $0.52
     Discontinued Operations                        0.14             (0.02)
     Net Income Per Common Share: Basic            $0.60             $0.50

  Net Income (Loss) Per Common Share: Diluted
     Continuing Operations                         $0.45             $0.52
     Discontinued Operations                        0.14             (0.02)
     Net Income Per Common Share: Diluted          $0.59             $0.50


DATASOURCE: Ecology & Environment, Inc.



CONTACT:  Ronald Frank of Ecology & Environment, Inc., [phone]



Web site:  http://www.ene.com/ 

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