EnGlobe Corp. Wins Two Long-Term Contracts

    BURLINGTON, ON, Dec. 20 /CNW/ - EnGlobe Corp. (TSX: EG), Canada's leading
integrated environmental services company, today announced it has been awarded
two contracts that will provide long-term revenue streams in both its organic
waste management and site assessment and remediation businesses.
    The Company's organic waste management business, GSI Environment Inc.,
has been awarded a five-year exclusive contract by Kruger Inc. to be the sole
provider of pulp and paper sludge that will be transformed into energy at
Kruger's new 23-megawatt biomass cogeneration plant at its Brompton mill near
Sherbrooke, Quebec.
    The pulp and paper sludge that will supply the plant is produced by both
Kruger and other members of the pulp and paper industry. The Kruger
cogeneration plant represents a beneficial reuse outlet for approximately
470,000 metric tons of organic waste per year.
    "This contract has many benefits for EnGlobe and for all Canadians," said
Tony Busseri, President and Chief Executive Officer of EnGlobe Corp. "It
provides our Company with a dependable stream of revenues for five years,
which has long been one of our strategic objectives. It also enables GSI to
position itself as a Canadian leader in the management and beneficial reuse of
pulp and paper waste streams. And the environmental benefits are significant,
since the Kruger biomass cogeneration plant will eliminate approximately
83,000 tonnes of greenhouse gases annually, which is the equivalent of taking
18,000 vehicles off the road."
    In addition, Biogénie S.R.D.C Inc, EnGlobe's site assessment and
remediation subsidiary, has been awarded a three-year extension to its
management contract for Petro-Canada's contaminated soil treatment facility in
East Montreal. The contract is expected to generate approximately $4.5 million
to $6 million over the next three years and will continue to be directed by
the Biogénie team that has been managing these installations since 1993.
    "We are proud of Petro-Canada's continued confidence in our ability and
expertise, not only because of the long-term revenues this contract
represents, but because this work exemplifies our capabilities for other
prospective clients in a growing sector of our industry," Mr. Busseri said.
"Together, these two contracts give us a solid foundation for future growth
for our shareholders."

    About EnGlobe Corp.

    EnGlobe Corp., formerly Environmental Management Solutions Inc., is
Canada's leading integrated environmental services company specializing in the
management of organic-based waste streams and contaminated soils, with an
emphasis on beneficial reuse. EnGlobe offers cost-effective solutions to
municipal, commercial and industrial clients in Canada, the northern United
States, England and France through its subsidiaries: Biogénie S.R.D.C. Inc.
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 Company's business, future capital expenditures and the Company'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 Company's relationships with its
suppliers, pricing pressures and other competitive factors, the availability
and costs of fuels and utilities, the results of the Company's ongoing efforts
to improve cost effectiveness, changes in regulatory requirements affecting
the Company's business and the availability and terms of financing. Other Risk
Factors are set out and described in the Company'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
    Readers are also cautioned that EBITDA should not be confused with cash
flow from operating activities. The most comparable GAAP financial measure is
operating income, which is described in the Company's third quarter Management
Discussion & Analysis Results from Operations section.

For further information:

For further information: Investors: Tony Busseri, President and Chief
Executive Officer, EnGlobe Corp., (905) 335-2100 x 5022; Media: John Lute,
Lute & Company, (416) 929-5883 x 222

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