BUFFALO, N.Y., Dec. 13 /PRNewswire-FirstCall/ -- HIGHLIGHTS -- Net revenues for Ecology and Environment, Inc. (E&E; Amex: EEI) for the first quarter of fiscal year 2007 were $20.9 million, up 3% from the $20.3 million reported in fiscal year 2006. The Company reported net income from all operations for the first quarter of fiscal year 2007 of $698,000 or $.17 per share, compared to net income of $746,000 or $.19 per share in the first quarter of the prior year. DETAILS -- The Company had a solid first quarter of fiscal year 2007 as net revenues increased $600,000 from the $20.3 million reported during the first quarter of fiscal year 2006. The growth in net revenues was attributable to increased work in the private sector as well as work performed by two of the Company's subsidiaries, Walsh Environmental and E&E do Brasil. Walsh Environmental reported net revenues of $4.8 million during the first quarter of fiscal year 2007, up 33% from the $3.6 million reported in the prior year. The increase in Walsh Environmental is mainly due to higher revenues from its energy, mining and transportation sectors. E&E do Brasil reported net revenues of $1.0 million during the first quarter of fiscal year 2007, an increase of 100% over the first quarter of fiscal year 2006. The increase in E&E do Brasil was due to an escalation in work performed in its oil and pipeline sectors. Net revenues from commercial clients in the parent company increased $1.1 million or 31% during the first quarter of fiscal year 2007 attributable to increased activity on energy contracts related to LNG (Liquefied Natural Gas) and wind power. Net revenues from federal clients decreased slightly as a result of the completion of the relief efforts on hurricanes Katrina and Rita. The Company continues to work in the Gulf Coast Region on projects to restore the wetlands that were damaged by the hurricanes. Net income from all operations for the first quarter of fiscal year 2007 decreased slightly compared with the first quarter of the prior year. However, gross profits increased as a result of the higher margin sector work. This was offset by higher indirect costs attributable to increased staffing levels and increased business development costs worldwide. 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 October 28, 2006 October 29, 2005 Gross Revenues $24,194 $23,525 Net Revenues 20,904 20,275 Net Income From Continuing Operations 733 783 Net Loss From Discontinued Operations (35) (37) Net Income 698 746 Net Income (Loss) Per Common Share: Basic Total Continuing Operations $0.18 $0.20 Discontinued Operations (0.01) (0.01) Net Income Per Common Share: Basic $0.17 $0.19 Net Income (Loss) Per Common Share: Diluted Continuing Operations $0.18 $0.20 Discontinued Operations (0.01) (0.01) Net Income Per Common Share: Diluted $0.17 $0.19 DATASOURCE: Ecology and Environment, Inc. CONTACT: Ronald Frank, +1-716-684-8060, for Ecology and Environment, Inc. Web site: http://www.ene.com/

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