Ecology and Environment, Inc. Reports Increased Earnings for the Second Quarter of Fiscal Year 2007, Sale of Shrimp Farm Facilit

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, [phone], for Ecology and Environment,

Inc.



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

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