QUEBEC CITY, Aug. 25 /CNW/ - EnGlobe Corp. ("EnGlobe" or the "Corporation") (TSX: EG) today announced that holders of EnGlobe's existing Class "A" convertible debentures (the "Debentures") and Series 1 preferred shares (the "Preferred Shares") (collectively the "Units") have agreed to the early conversion of the Units into common shares of the Corporation.  Subject to Toronto Stock Exchange acceptance, the Corporation and holders of the $19.6 million of Debentures maturing on March 31, 2014, and the outstanding Preferred Shares have agreed to convert the Units into common shares and to receive payment of all accrued interest and dividends in cash.  The holders have agreed to convert the Units early to facilitate the strengthening of the Company's balance sheet and in light of the Corporation indicating its intension to force conversation as at December 31, 2010 as per the legal provisions of the Units.

The conversion of the Units will occur concurrently with the end of the third quarter of fiscal year 2010.  As of September 30, 2010, the Corporation will owe $19.6 million in principal amount of Debentures, which will be converted into 60,566,176 common shares of the Corporation, and $2,226,374 in interest on the Debentures, which will be paid in cash. The holders of the 10,296,250 Preferred Shares (principle amount of $1,029,625), which were issued concurrently with the Debentures, will convert the Preferred Shares to 3,187,694 common shares, and are owed $117,699 in accrued dividends, which will be paid in cash. In addition, in exchange for converting the Units to common shares early, the holders of the Units will receive cash payment of the interest and dividends that would be due for the fourth quarter of fiscal year 2010.  This additional interest and dividend payment will amount to $247,912 and $14,342 respectively, which will be paid no later than March 31, 2011.

After giving effect to the conversion of the Units, the Corporation will have 158,630,133 common shares outstanding and no remaining Class A convertible debentures or Series 1 preferred shares.  The conversion is subject to the usual regulatory approval, including approval by the Toronto Stock Exchange.

About EnGlobe Corp.

EnGlobe Corp. is a leading international integrated environmental services company specializing in the management of contaminated soils and organic based waste streams, with an emphasis on beneficial reuse. EnGlobe offers cost-effective solutions to municipal, commercial and industrial clients in Canada, the north-eastern United States, the United Kingdom and France through its divisions and subsidiaries: Biogénie, Biogénie Europe SAS, Biogénie Site Remediation Limited and Celtic Technologies Limited for site assessment and remediation, GSI Environment Inc. for organic waste management, and Tanknology Canada Inc. for tank testing and calibration.  Shares of EnGlobe trade on the Toronto Stock Exchange under the ticker symbol EG. Additional information is available at www.englobecorp.com.

Forward-Looking Statements

This press release contains certain forward-looking statements. Such statements relate to, among other things, sales growth, expansion and growth of the Corporation's business, future capital expenditures and the Corporation's business strategy. Forward-looking statements are subject to inherent uncertainties and risks including, but not limited to: general industry and economic conditions, changes in the Corporation's relationships with its suppliers, pricing pressures and other competitive factors, the availability and costs of fuels and utilities, the results of the Corporation's ongoing efforts to improve cost effectiveness, changes in regulatory requirements affecting the Corporation's business and the availability and terms of financing. Other Risk Factors are set out and described in the Corporation's Annual Information Form which is available at www.sedar.com. Consequently, actual results and events may vary significantly from those included in, contemplated by or implied by such forward-looking statements. In evaluating forward-looking statements, readers should specifically consider the various factors that could cause actual events or results to differ materially from such forward-looking statements.


For further information: For further information:


Mario Saucier Marie-Chantal Turcotte
Investor Relations Corporate Communications
T: +1-450-929-4949, ext. 222      T: +1- 418-781-0191, ext. 5235
msaucier@englobecorp.com mmcturcotte@englobecorp.com

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