EXHIBIT 13
                                                 ANNUAL REPORT TO STOCKHOLDERS


FRONT COVER

The cover of EA Engineering, Science, and Technology, Inc.'s 1997 annual report
depicts a series of artistically-placed "building blocks" against a backdrop of
light and texture. These "building blocks" represent the newly transformed EA, a
firm with a fresh company vision, a rejuvenated staff, an energized management
team, and a client-centered organizational structure. Additionally, the cover of
the report introduces a series of company names and divisions, both formal and
informal, for use in representing and marketing the company's breadth. Those
names, EA Companies, EA Consulting, EA Energy Management Solutions, EA
Laboratories, and EA International, Inc., are subtly placed near each of the
"building blocks."

(New page)

ABOUT EA

EA Engineering, Science, and Technology, Inc.

EA is a consulting firm specializing in the fields of energy, the environment,
and health and safety. We serve industry, utilities, and government clients both
directly and indirectly through work performed for architect/engineers,
engineer/contractors, law firms, and financial institutions. We specialize in
the artful application of technology and professional services to help our
clients succeed.

(A cluster of building blocks is centered on the page)

Leveraging the diverse intellectual capabilities of our scientists, planners,
engineers, economists, and business managers, we anticipate and resolve issues
that affect our client's business performance and productivity. With a
management perspective, we provide solutions that are financially responsible,
acceptable to regulators and communities, technically dependable, and
operationally efficient. Our bottom-line goal is assisting our clients in
achieving their objectives of global competitiveness and enhanced profitability.

(PAGE)

(A sphere shaped block is centered above the paragraph)

Successfully guiding client businesses and organizations through change is our
mission. Working side-by-side with our clients, we combine creative leadership
with the latest technologies to solve their most complex problems and resolve
their most pressing issues. Our scientists, engineers, and business managers
create full-service solutions that save time, reduce costs, and add overall
value for our clients. The pace of change today is staggering, especially in
matters pertaining to energy, environment, and health and safety. Using
imagination, talent, and integrity, we convert our clients' challenges into
solutions and their obstacles into competitive advantages.

<PAGE>

(A square shaped block is centered above the paragraph)

EA assists energy providers in managing the issues associated with restructuring
and market competition. With a long history of supporting more than 100 utility
organizations, IPPs, and gas transmission companies, we have responded to needs
ranging from facility licensing to due diligence reviews and optimization
programs. EA's Clean Fuel Vehicles group assists fleet owners and government
officials in planning and implementing programs that address their combined need
for lower emissions and fuel efficiency.

(A triangle shaped block is centered above the paragraph)

As the developing world asserts its place in the global economy, EA
International provides a series of services to this exciting marketplace.
Supported by a distinguished history of work in more than 30 countries, we serve
US government agencies, multinational banks and corporations, international aid
organizations, and the governments of other nations. By applying our knowledge
base and skills to the goals of public and environmental safety, energy
self-sufficiency, pollution control, and water resource management, we have
demonstrated strength and dependability in helping our clients succeed.

(A rectangle shaped block is centered above the paragraph)

With certifications in all 50 states and a track record of "firsts" in
developing new analytical techniques and quality protocols, EA offers clients a
full range of chemical, biological, and ecotoxicological analyses on media
ranging from tissue to sediment, soils, explosives and chemical degradation
products. Complementing EA's consulting capabilities, our laboratory expertise
provides clients with a seamless, single-source service for all field
activities, from sample collection and in-situ measurement to data validation.

(New page)

(A cluster of building block shapes are centered at the top of the page.)

LETTER TO THE SHAREHOLDERS

We look back on 1997 as a bellweather year, as significant in our Company's
history as was 1973, the year in which EA was founded. This was a year of
redefinition, as the organization confronted the realities of a changing
marketplace and world.

The restructuring of EA has been swift and sure. Guiding this rebirth is our
belief that to succeed today, EA must deliver to its clients more than
compliance with environmental laws--we must assist clients in achieving their
broad business objectives. This belief is reinforced in each of the building
blocks used to cement EA's transformation: a fresh company vision, a revitalized
management team, a new clientcentered organizational structure, and a global
marketing approach that alters the conventional rules of engagement. The result
is a new EA, a bold and exciting company that uses the talents of its
extraordinary professionals to create financial value for its clients.

Since March of 1997, the new management team has dramatically improved the
financial performance of the Company. Profitability was restored and maintained
during the final five months of the fiscal year, with fourth quarter income
higher than in any quarter of the past seven. Record high utilization rates
within the organization, combined with effective management of cost and staffing
levels, have pushed our productivity to the top of industry standards. Emphasis
on cash management, along with a new banking relationship, has created the
necessary foundation for continued improvement in our capital structure. These
achievements are just the beginning.

(A sphere shaped block is centered over the paragraph.)

<PAGE>

Company Mission

In our role as an advocate and resource to our clients, EA provides the
management perspective and technical skills needed to anticipate, identify, and
resolve those environmental, energy, and health and safety issues affecting
their business performance and profitability. Recognizing the interrelated
business factors confronting our clients, EA applies the diverse intellectual
capabilities and tactical skills of the entire organization in developing
solutions that are financially responsible, acceptable to regulators,
technically dependable, and operationally efficient.

(A square shaped box is centered over the paragraph.)

Management Team

At the center of the EA transformation you will find the extraordinary
capabilities and dedication of the new management team. This group has been
selected from among the best and brightest in our industry and our Company.
During the final five months of 1997, they have applied great energy and talent
to the task of revitalizing every person in our Company. This new team is driven
to constantly improve profitability, respond to changes in the marketplace, and
provide superior service to our clients. For this team, change is not something
to be endured, it is a way of life.

(A triangle shaped block is centered over the paragraph.)

A Global Marketing Approach

The market for our services is expanding, with the international opportunities
presently exceeding those we see domestically. More important, the distinction
between "domestic" and "international" is diminishing as the world becomes one
global market networked together. These factors are influencing our clients as
well, many of whom see an increasing portion of their expansions occurring in
the developing world.

EA has successfully delivered services in more than 30 countries and continues
an ambitious international business plan. In Alexandria, Egypt, for example, EA
last year completed a multimilliondollar environmental assessment program on
behalf of the US Agency for International Development (USAID) and the Alexandria
General Organization for Sanitary Drainage. EA's project represented the largest
environmental assessment program ever funded by USAID. Our project results will
play a critical role in enabling the City of Alexandria to solve its long-term
resource needs.

In the Western Hemisphere, EA de Mexico received several contracts, including
site characterization and environmental planning work for two cities on behalf
of Mexico's FNM Railroad Authority. In Peru and the Dominican Republic, EA
scientists and planners advised government leaders on programs for the phase-out
of lead-based gasoline.

(A rectangle shaped block is centered over the paragraph.)


At the Center: The Client

We are justifiably proud that "our first client is still our client." For more
than 25 years, EA has maintained a relationship with Baltimore Gas & Electric
Company (BGE). This year, BGE will once again account for about one million
dollars of revenue for EA, with our tasks ranging from stormwater control to
complex remediation of a contaminant-laden retired manufactured gas plant.
Today, nearly 75 percent of our new orders are received from existing clients.
This continuing trust by our clients is our most cherished asset.

<PAGE>

As part of our restructuring, we have created and have focused considerable
authority on our branch offices. This decision follows our belief that being
geographically close to our clients is an essential ingredient to providing
superior client service. In fact, our branch offices are integral parts of the
communities in which they are located. Through participation in civic
organizations and professional societies, our employees understand the
importance of contributing their energies to those activities that make life
better for all. This sense of "partnership" applies to both our professional and
social responsibilities within the communities we serve.

Taken Together

At EA, we understand that "providing superior client service" is more than a
slogan. It requires the dedication of every person in our firm to the goal of
using our intellectual gifts, our creativity, and our commitment to setting us
apart.

As we begin our 25th year, we are determined to demonstrate that understanding
and commitment on a daily basis--in our client relationships, our pursuit of new
opportunities, and in our work with colleagues, suppliers, and shareholders. We
are confident in our new organizational structure and, most importantly, in the
ability of EA's exceptional people to stand second to none in this industry for
quality, talent, and professional performance. EA's evolution is a work in
progress that started in 1997 with our transition from "business as usual" to
business as it should and will be. Armed with that determination and supported
by a revitalized structure, we look forward to 1998.

(PHOTO)

Loren D. Jensen
Chairman of the Board

"For nearly a quarter of a century, I have been honored to represent the men and
women of EA Engineering, Science, and Technology. Those talented professionals
nurtured the growth of our Company from a handful of scientists to a
multifaceted firm with diverse capabilities and an enviable reputation for
quality.

This year, a new group of professionals joined our team, injecting fresh ideas
and experience into our firm. The result has been a revitalized EA, one firmly
rooted in the achievements of the past, but strategically positioned to take its
place among the leaders of our industry. I am confident that EA's heritage of 25
years of excellence is a prologue to even greater success."

(PHOTO)

Donald A. Deieso
President and Chief Executive Officer

Prior to his appointment as President and CEO of EA, Dr. Deieso served as
President and CEO of the Metcalf & Eddy Companies and the Research-Cottrell
Companies. Dr. Deieso has served as Assistant Commissioner of the New Jersey
Department of Environmental Protection, head of the US EPA's Region II Superfund
remediation program, and chief chemical engineer for Consolidated Edison of New
York.

Dr. Deieso leads and serves on many industry committees and has accepted
appointed as Chairman of the U.S. Department of Commerce-sponsored Environmental
Technologies Trade Advisory Committee.

<PAGE>

"I am delighted to have the opportunity of leading this company and its
outstanding professionals. Today, service firms must demonstrate enormous
agility in responding to changing client needs.  At EA, we thrive on change."

Sincerely,

(Signature of Donald A. Deieso)

Donald A. Deieso
President and Chief Executive Officer

(Signature of Loren D. Jensen)

Loren D. Jensen
Chairman of the Board

(PAGE)

1997 FINANCIAL OVERVIEW

For EA, 1997 was a momentus year. Following a disappointing second quarter, the
Company launched an ambitious revitalization program centered on cost reduction
and income enhancement. While this restructuring necessitated a sizable loss for
the third quarter, the Companyturned the corner in its fourth quarter, achieving
significant profitability. Profitability in the final quarter of the year
surpassed the results of the firm's seven prior quarters, and returned the
Company to profitability for the first time since the first quarter of 1997.

(A sphere shaped block is centered over the paragraph.)

<PAGE>

Quarterly Review

Quarterly Financial Information
(in thousands, except per share data)

<TABLE>
<CAPTION>
                                     November 30    February 28       May 31     August 31
---------------------------------  --------------- --------------  -----------  -----------
<S> <C>
1997
Gross revenue                           $22,178       $17,537        $16,661      $17,514
Net income                                  187       (2,483)        (3,457)          346
Net income per share                      $0.03       $(0.40)        $(0.56)        $0.06

1996
Gross revenue                           $22,940       $19,193        $22,340      $23,835
Net income                                  536         (830)            243        (529)
Net income per share                      $0.09       $(0.13)          $0.04        $0.09
</TABLE>

Fiscal year 1997 began favorably with a profitable first quarter. However, on a
year-to-year comparative basis, net income as a percentage of gross revenue was
1 percent versus 2.3 percent. This was the beginning of the continued decline of
available work authorizations from federal contracts and a weak private sector
market.

The Company reported a significant loss in the second quarter attributable in
large part to low volume in EA Laboratories, unrecoverable costs on projects,
and higher-than-expected business development expenses.

Realizing the need for rapid change, the Company named a new President and Chief
Executive Officer, Donald A. Deieso, Ph.D., effective March 1, 1997. Quickly
assessing the situation, the management team implemented a major restructuring
plan, which significantly reduced costs and increased profitability. The
anticipated results were achieved by rightsizing, dramatically increasing
utilization rates and productivity, improving cash management, and attracting
fresh financing to the Company.

The loss posted in the third quarter of fiscal 1997 was primarily attributable
to a restructuring charge of $3.0 million and additional estimated costs of $1.4
million in excess of contract values related to certain of the Company's
landfill closure projects, a market EA no longer pursues. The last two months of
the third quarter were profitable, positioning EA for its fourth quarter
success.

The results of the Company's restructuring program were realized in its fourth
quarter with a return to profitability, representing a rise in operating income
of more than $1.2 million over the comparable period from the prior year. This
increase in income was realized on 15 percent lower net revenue. Profitability
improvement has resulted in part from a 20 percent decrease in costs and
operating expenses over the comparable period, including a 10 percent reduction
in interest expense from the prior year.

(A square shaped block is centered above the paragraph.)

Financial Condition

<PAGE>

EA's balance sheet continues to be strong, with minimal long-term debt and
reduced short-term obligations. The Company generated over $1.9 million in cash
from operating activities, much of which was used for debt reduction and
investment in capital equipment, including high-tech computer and
telecommunications capabilities. This in turn reduced working capital and
resulted in a lower current ratio. The Company's debt-to-equity ratio remains
low, below 18 percent.

Improvements made in the Company's billing and collection processes during the
final five months have resulted in a 26-day reduction in Days Sales Outstanding
(DSO) from the prior year. This improvement has reduced our cash borrowings and
interest expense for the year.

Stockholders' equity decreased to $13.3 million, or about $2.13 per share, as a
result of the fiscal 1997 loss, and was partially offset by employee
participation in the Employee Stock Purchase Plan.

(A triangle shaped block is centered above the paragraph.)

Credit Facilities

Adding strength to the Company transformation is the new banking relationship
with The First National Bank of Maryland (FNB). Under the terms of this
agreement, EA has been provided with a revolving credit facility of $8.5
million, of which $2.5 million is available for acquisitions, joint ventures,
and new business opportunities. This new credit facility represents a 42 percent
increase in availability over the previous arrangement. FNB is also making
available an additional $1.5 million for capital equipment. The term of the new
commitment extends until September 30, 1999 and is subject to renewals
thereafter.

(PAGE)

<PAGE>

          EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

                                     ASSETS

                                                            August 31,
                                                        1997         1996
-------------------------------------------------- ------------- -------------
Current Assets:

   Cash and cash equivalents                         $ 2,333,300   $ 1,308,600

   Accounts receivable, net                            9,498,800    12,692,700

   Costs and estimated earnings in excess
       of billings on uncompleted contracts            5,653,800    12,482,200
   Refundable income taxes                             1,883,900       319,500
   Prepaid expenses and other                          1,865,500     1,257,400
-------------------------------------------------- ------------- -------------
      Total Current Assets                            21,235,300    28,060,400
-------------------------------------------------- ------------- -------------
Property and Equipment, at cost:

   Furniture, fixtures, and equipment                 12,599,200    12,784,500

   Leasehold improvements                              3,664,800     3,677,800
                                                   ------------- -------------
                                                      16,264,000    16,462,300

   Less-Accumulated depreciation and amortization    (13,867,200)  (13,337,400)
-------------------------------------------------- ------------- -------------
      Net Property and Equipment                       2,396,800     3,124,900
-------------------------------------------------- ------------- -------------
Other Assets                                           3,009,800     2,143,200
-------------------------------------------------- ------------- -------------
      Total Assets                                   $26,641,900   $33,328,500
================================================== ============= =============

      The accompanying notes are an integral part of these balance sheets.


<PAGE>

          EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                                               August 31,
                                                           1997         1996
------------------------------------------------------- -----------  -----------
Current Liabilities:
   Accounts payable                                     $ 5,960,800  $ 4,047,800
   Accounts payable                                     $ 4,306,900  $ 6,061,000
   Accrued expenses                                       2,694,600    1,019,200
   Accrued salaries, wages and benefits                   2,891,200    3,183,400
   Current portion of long-term debt                        648,300      644,600
   Billings in excess of costs and estimated earnings
      on uncompleted contracts                              512,200    1,197,700
------------------------------------------------------- -----------  -----------
      Total Current Liabilities                          11,053,200   12,105,900
------------------------------------------------------- -----------  -----------
Long-Term Debt, net of current portion                    2,331,700    2,664,500
------------------------------------------------------- -----------  -----------
      Total Liabilities                                  13,384,900   14,770,400
------------------------------------------------------- -----------  -----------
Commitments
------------------------------------------------------- -----------  -----------
Stockholders' Equity:
   Common stock, $.01 par value; voting;
      10,000,000 shares authorized; 6,227,300
      and 6,175,000 shares issued and outstanding            62,300       61,800
   Preferred stock, $.01 par value;
      8,000,000 shares authorized; none issued                   --           --
   Capital in excess of par value                        10,902,300   10,796,300
   Retained earnings                                      2,292,400    7,700,000
------------------------------------------------------- -----------  -----------
      Total Stockholders' Equity                         13,257,000   18,558,100
------------------------------------------------------- -----------  -----------
      Total Liabilities and Stockholders' Equity        $26,641,900  $33,328,500
======================================================= ===========  ===========


      The accompanying notes are an integral part of these balance sheets.

<PAGE>

          EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                      Year Ended August 31,
                                               1997           1996          1995
------------------------------------------ -------------  ------------  -----------
<S>   <C>
Total revenue                              $ 73,890,900   $ 88,307,800  $92,364,900
Less - Subcontractor costs                  (21,435,800)   (23,954,100) (19,893,500)
------------------------------------------ -------------  ------------  -----------
      Net revenue                            52,455,100     64,353,700   72,471,400
------------------------------------------ -------------  ------------  -----------
Operating costs and expenses:
   Direct salaries and other operating       50,031,700     57,799,700   59,681,450
   Sales, general and administrative          7,445,400      6,997,600    8,649,250
   Restructuring charges                      3,000,100             --           --
------------------------------------------ -------------  ------------  -----------
      Total operating expenses               60,477,200     64,797,300   68,330,700
------------------------------------------ -------------  ------------  -----------
Income (loss) from operations                (8,022,100)      (443,600)   4,140,700
------------------------------------------ -------------  ------------  -----------
Interest expense                               (446,400)      (464,900)    (522,800)
Interest income                                  91,600        107,400       94,600
------------------------------------------ -------------  ------------  -----------
Income (loss) before income taxes            (8,376,900)      (801,100)   3,712,500
------------------------------------------ -------------  ------------  -----------
(Benefit from) provision for income taxes    (2,969,300)      (221,000)   1,485,100
------------------------------------------ -------------  ------------  -----------

Net income (loss)                           $(5,407,600)     $(580,100)  $2,227,400
========================================== =============  ============  ===========

Net income (loss) per share                      $(0.87)        $(0.09)       $0.36
========================================== =============  ============  ===========

Weighted average shares outstanding           6,205,700      6,138,100    6,170,700
========================================== =============  ============  ===========
</TABLE>
        The accompanying notes are an integral part of these statements.


<PAGE>

          EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES

           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

               FOR THE YEARS ENDED AUGUST 31, 1997, 1996, AND 1995

<TABLE>
<CAPTION>
                                               Capital in
                                    Common     Excess of     Retained
                                    Stock      Par Value     Earnings       Total
--------------------------------  ---------  ------------  -----------  -----------
<S>   <C>
Balance, August 31, 1994            $57,700  $  9,066,100  $6,052,700   $15,176,500

Issuance of Stock                     3,200       821,700          --       824,900

Tax Benefit from Stock Options
     Exercised                           --       650,900          --       650,900

Net Income                               --            --   2,227,400     2,227,400
--------------------------------  ---------  ------------  -----------  -----------
Balance, August 31, 1995             60,900    10,538,700   8,280,100    18,879,700

Issuance of Stock                       900       233,000          --       233,900

Tax Benefit from Stock Options
     Exercised                           --        24,600          --        24,600

Net Loss                                 --            --    (580,100)     (580,100)
--------------------------------  ---------  ------------  -----------  -----------
Balance, August 31, 1996             61,800    10,796,300   7,700,000    18,558,100

Issuance of Stock                       500       106,000          --       106,500

Net Loss                                 --            --  (5,407,600)   (5,407,600)
--------------------------------  ---------  ------------  -----------  -----------
Balance, August 31, 1997            $62,300   $10,902,300  $2,292,400   $13,257,000
================================  =========  ============  ===========  ===========
</TABLE>
        The accompanying notes are an integral part of these statements.


<PAGE>

          EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                        Year Ended August 31,
                                                                            1997                  1996                  1995
------------------------------------------------------------------  --------------------- ---------------------------------------
<S>   <C>
  Cash Flows From (Used For) Operating Activities:
     Net income (loss)                                                       $(5,407,600)         $  (580,100)         $2,227,400
     Noncash expenses included in net income (loss)-
      Depreciation and amortization                                            1,427,100            1,683,900           1,633,100
   Deferred (benefit from) provision for income taxes                         (1,309,800)            (198,300)           (418,200)
   Current (benefit from) provision for income taxes                          (1,659,500)             (22,700)          1,903,300

 Net (increase) decrease in noncash assets -
   Accounts receivable, net                                                    3,193,900            2,165,400          (2,714,300)
   Costs and estimated earnings in excess of billings
      on uncompleted contracts                                                 6,828,400           (1,747,200)         (2,747,600)
   Prepaid expenses and other assets                                            (314,000)            (110,800)            179,400

 Net increase (decrease) in nondebt liabilities -
   Accounts payable and accrued expenses                                        (370,900)          (1,149,400)          1,702,700
   Refunds of income taxes                                                       400,400               14,700              50,200
   Payments of income taxes                                                     (156,200)            (445,500)           (955,500)
   Billings in excess of costs and estimated earnings
      on uncompleted contracts                                                  (685,500)             148,400              47,100
------------------------------------------------------------------  --------------------- ---------------------------------------
      Net cash flows from (used for) operating activities                      1,946,300             (241,600)            907,600
------------------------------------------------------------------  --------------------- ---------------------------------------
Cash Flows From (Used For) Financing Activities:
   Proceeds from issuance of common stock                                        106,500              233,900             824,900
   Reduction of long-term debt                                                  (810,300)          (4,489,100)           (839,900)
   Proceeds from issuance of long-term debt                                      481,200            3,000,000                  --
------------------------------------------------------------------  --------------------- ---------------------------------------
      Net cash flows used for financing activities                              (222,600)          (1,255,200)            (15,000)
------------------------------------------------------------------  --------------------- ---------------------------------------
Cash Flows Used For Investing Activities:
   Purchase of property and equipment, net                                      (699,000)          (1,008,500)         (1,067,200)
------------------------------------------------------------------  --------------------- ---------------------------------------
      Net cash flows used for investing activities                              (699,000)          (1,008,500)         (1,067,200)
------------------------------------------------------------------  --------------------- ---------------------------------------

Net Increase (Decrease) in Cash and Cash Equivalents                           1,024,700           (2,505,300)           (174,600)

Cash and Cash Equivalents, beginning of year                                   1,308,600            3,813,900           3,988,500
------------------------------------------------------------------  --------------------- ---------------------------------------

Cash and Cash Equivalents, end of year                                        $2,333,300           $1,308,600          $3,813,900
==================================================================  ===================== =======================================
</TABLE>
        The accompanying notes are an integral part of these statements.

<PAGE>

          EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
              FOR THE YEARS ENDED AUGUST 31, 1997, 1996, AND 1995



  Note 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

  Basis of Presentation--

  The accompanying consolidated financial statements present the accounts of EA
  Engineering, Science, and Technology, Inc. (EA) and its wholly-owned
  subsidiaries, EA International, Inc. and EA Financial, Inc., and its
  wholly-owned subsidiaries, EA Global, Inc. and EA Engineering, Science, and
  Technology de Mexico, S.A. de C.V. During fiscal 1995, EA Remediation
  Technologies, Inc., formerly a wholly-owned subsidiary, was merged into EA.
  The entities are collectively referred to herein as the "Company." All
  significant intercompany transactions have been eliminated in consolidation.

  Revenue Recognition--

  The Company is a multidisciplinary environmental services organization
  providing a wide range of consulting, engineering, remediation, and analytical
  services. These services are generally performed under time and material,
  fixed price, and cost plus fixed fee contracts which vary in length from one
  month to ten years.

  The Company accounts for contract revenues and costs under fixed price
  contracts using the percentageof-completion method. The
  percentage-of-completion is determined using the "cost-to-cost" method for
  each contract cost component. Under this method, direct labor and other
  contract costs incurred to date are compared to periodically revised estimates
  of the total of each contract cost component at contract completion to
  determine the percentage of revenues to be recognized. Revenues from time and
  material and cost plus fixed fee contracts are recognized currently as the
  work is performed. Provision for estimated losses on uncompleted contracts, to
  the full extent of the loss, is made during the period in which the Company
  first becomes aware that a loss on a contract is probable.

  Contract costs and estimated earnings recognized in excess of amounts billed
  are classified as current assets under "costs and estimated earnings in excess
  of billings on uncompleted contracts." Billings in excess of contract costs
  and estimated earnings are classified as current liabilities under "billings
  in excess of costs and estimated earnings on uncompleted contracts."

  Generally, contracts provide for the billing of costs incurred and estimated
  fees on a monthly basis. Amounts included in "costs and estimated earnings in
  excess of billings on uncompleted contracts" in the accompanying financial
  statements will be billed within twelve months of the balance sheet date.

  Major Clients--

  Various agencies of the federal government accounted for approximately 50%,
  53%, and 64% of the Company's net revenue for the years ended August 31, 1997,
  1996, and 1995, respectively.  Additionally,


<PAGE>

  various agencies of the federal government accounted for approximately 40% and
  48% of the Company's accounts receivable and costs and estimated earnings in
  excess of billings on uncompleted contracts as of August 31, 1997 and 1996,
  respectively.

  Cash and Cash Equivalents--

  Cash equivalents consist of money market instruments with a purchased original
  maturity of three months or less, stated at cost, which approximates market.

  Property and Equipment--

  Property and equipment are depreciated using the straight-line method over
  their estimated useful lives ranging from 3 to 10 years. Leasehold
  improvements are amortized over the shorter of the estimated useful life or
  the term of the lease.

  Segment Information--

  The Company operates within one industry segment, providing a wide range of
  consulting, engineering, remediation, and analytical services.

  Reclassifications--

  Certain prior year balances have been reclassified to conform with current
  year presentation.

  Risks and Uncertainties--

  Reliance on major government contracts subjects the Company to risks
  associated with public budgetary restrictions and uncertainties, discrepancies
  between awarded contract amounts and actual revenues, and cancellation at the
  option of the government. The Company attempts to mitigate these risks by
  staffing only to meet reasonably anticipated average workloads, by using
  subcontractors to handle peak workloads, and by obtaining termination benefit
  contract provisions. Cancellation of any of the Company's major government
  contracts, however, could have a material adverse effect on the Company.

  Use of Estimates--

  The preparation of financial statements in accordance with generally accepted
  accounting principles requires management to make estimates and assumptions
  that affect the reported amount of assets, liabilities, revenues and expenses
  in the financial statements and in the disclosures of contingent assets and
  liabilities. While actual results could differ from these estimates,
  management believes that actual results will not be materially different from
  amounts provided in the accompanying consolidated financial statements.

  Supplemental Disclosures of Cash Flow Information--

  Cash paid during the years ended August 31, 1997, 1996, and 1995 for interest,
  was $467,200, $474,200, and $521,700, respectively. Retirements of property
  and equipment for the same periods were $897,200, $2,602,400, and $46,300,
  respectively. The noncash tax benefit attributable to the exercise of non-


<PAGE>

  qualified stock options was $24,600, and $650,900 for the years ended August
  31, 1996 and 1995, respectively. There was no benefit for the year ended
  August 31, 1997.

  Accounting for Income Taxes--

  Deferred income taxes are recorded to reflect the tax consequences on future
  years for differences between the tax basis of assets and liabilities and
  their financial reporting amounts.

  Accounting Pronouncements

  In March 1995, the Financial Accounting Standards Board (FASB) issued SFAS No.
  121 "Accounting for the Impairment of Long-Lived Assets and for Long-Lived
  Assets to be Disposed of." This statement requires that long-lived assets and
  certain identifiable intangibles to be held and used by an entity be reviewed
  for impairment whenever events or changes in circumstances indicate that the
  carrying amount of an asset may not be recoverable. This statement is
  effective for fiscal years beginning after December 15, 1995. Management has
  determined that adoption of this Standard has not resulted in any material
  changes to its financial statements.

  In March 1995, the FASB issued Statement No. 123 (SFAS 123), "Accounting for
  Stock-Based Compensation." Companies have the option of adopting the new
  accounting provisions or may elect to provide pro forma disclosures of net
  income and earnings per share as if the accounting had been adopted.
  Management has elected to continue to account for its stock-based compensation
  in accordance with APB Opinion No. 25 and has provided pro forma disclosures
  (see Note 8).

  In February 1997, the FASB issued Statement No. 128 (SFAS 128), "Earnings Per
  Share," which establishes new standards for computing and presenting earnings
  per share. SFAS 128 is effective for financial statements issued for periods
  ending after December 15, 1997, including interim periods. Management has
  determined that the implementation of SFAS 128 would have no impact on the
  Company's earnings per share amounts.

  In February 1997, the FASB issued Statement No. 129 (SFAS 129), "Disclosure of
  Information about Capital Structure," which eliminates the exemption of
  nonpublic entities from certain disclosure requirements of APB Opinion No. 15
  as provided by FASB Statement No. 21. SFAS 129 is effective for periods ending
  after December 15, 1997. Management has determined that the implementation of
  SFAS 129 will have no impact on the Company's financial reporting.

  In June 1997, the FASB issued Statement No. 130 (SFAS 130), "Reporting
  Comprehensive Income," which establishes standards for reporting and display
  of comprehensive income and its components in a full set of general purpose
  financial statements. SFAS 130 is effective for fiscal years beginning after
  December 15, 1997. Management has not yet determined whether the
  implementation of SFAS 130 will have any impact of the Company's financial
  reporting.

  In July 1997, the FASB issued Statement No. 131 (SFAS 131), "Disclosures About
  Segments of an Enterprise and Related Information," which establishes a new
  approach for determining segments within a company and reporting information
  on those segments. SFAS 131 is effective for fiscal years beginning after
  December 15, 1997. Management has not yet determined whether the
  implementation of SFAS 131 will have any impact on the Company's current
  method of disclosing business segment information.

<PAGE>

  Note 2.  INCOME TAXES:

  The (benefit from) provision for income taxes includes current and deferred
  tax amounts summarized as follows:

<TABLE>
<CAPTION>
                                                                          Year Ended August 31,
------------------------------------------------------------------------------------------------------------------
                                                               1997                1996                       1995
---------------------------------------------------------------------------------------------- -------------------
<S>   <C>
  Current tax expense (benefit):
     Federal                                                   $(1,659,500)         $ (18,400)          $1,602,400
     State                                                               --            (4,300)             300,900
---------------------------------------------------------------------------------------------- -------------------
                                                                (1,659,500)           (22,700)           1,903,300
---------------------------------------------------------------------------------------------- -------------------
  Deferred tax expense (benefit):
     Federal                                                    (1,309,800)          (160,600)           (352,100)
     State                                                               --           (37,700)            (66,100)
---------------------------------------------------------------------------------------------- -------------------
                                                                (1,309,800)          (198,300)           (418,200)
---------------------------------------------------------------------------------------------- -------------------
  (Benefit from) provision for income taxes                    $(2,969,300)         $(221,000)          $1,485,100
============================================================================================== ===================
</TABLE>

  Total deferred tax assets and liabilities as of August 31, 1997 and 1996 and
  the sources of the differences between the tax and financial reporting basis
  of the Company's assets and liabilities which give rise to the deferred tax
  assets and liabilities are as follows:


                                          Year Ended August 31,
------------------------------------- ----------------------------
                                          1997            1996
------------------------------------- -------------  -------------
  Deferred tax assets:
      Property and equipment            $   929,600      $ 694,200
      Accrued expenses and reserves       1,878,900        962,800
      Net operating loss                    398,200         46,700
------------------------------------- -------------  -------------
                                         $3,206,700     $1,703,700
===================================== =============  =============
  Deferred tax liabilities:
      Prepaid expenses                 $     99,300   $    109,700
      Miscellaneous                         203,500             --
------------------------------------- -------------  -------------
                                        $   302,800   $    109,700
===================================== =============  =============


  The net deferred tax assets of $2,903,900 and $1,594,000 as of August 31, 1997
  and 1996 are included to the extent appropriate in Prepaid expenses and other
  and Other Assets in the accompanying consolidated balance sheets.

<PAGE>

  Reconciliation of the statutory federal income tax rate and the effective
  income tax rate is summarized as follows:


                                                         Year Ended August 31,
------------------------------------------------------  -----------------------
                                                          1997    1996    1995
------------------------------------------------------  ------- -------- ------
  Statutory federal income tax (benefit) rate             34.0%   34.0%  34.0%
  State income tax, net of federal income tax effect       5.3     5.3    5.3
  Non-recognition of future benefit from foreign loss     (0.4)   (4.8)   --
  Other                                                   (3.5)   (6.9)   0.7
------------------------------------------------------  ------- -------- ------
  Effective income tax rate                               35.4%   27.6%  40.0%
======================================================  ======= ======== ======

  Note 3.  ACCOUNTS RECEIVABLE:

  Accounts receivable consist of the following:


                                          Year Ended August 31,
--------------------------------------- -------------------------
                                            1997         1996
--------------------------------------- ------------  -----------
  Contract accounts receivable           $ 8,802,400  $12,931,600
  Retainage by clients                     1,228,400    1,373,300
--------------------------------------- ------------  -----------
  Total accounts receivable               10,030,800   14,304,900
  Less-Allowance for doubtful accounts     (532,000)  (1,612,200)
--------------------------------------- ------------  -----------
  Accounts receivable, net               $ 9,498,800  $12,692,700
======================================= ============  ===========

  Management anticipates that substantially all retainages will be billed within
one year.

  Note 4.  BANK FINANCING ARRANGEMENTS:

  The Company entered into a new credit arrangement with a regional bank during
  fiscal year 1997 consisting of: (i) an $8,500,000 revolving line of credit
  secured by receivables; (ii) a $500,000 term loan; and (iii) an equipment line
  of credit of $1,500,000. Of the $8,500,000 revolving line of credit,
  $2,500,000 is available for acquisitions, joint ventures and licensing
  agreements. Borrowings under the revolving line of credit are limited to a
  percentage of certain accounts receivable and costs and estimated earnings in
  excess of billings on uncompleted contracts (up to a maximum of $4,000,000).
  The agreement was effective August 22, 1997. During fiscal years 1997, 1996,
  and 1995, the Company was either in compliance or had obtained waivers on all
  covenants related to these and prior arrangements.

<PAGE>

  Short-term borrowings information resulting from the financing arrangements is
as follows:

<TABLE>
<CAPTION>
                                                   Year Ended Year Ended  Year Ended
                                                   August 31, August 31,  August 31,
                                                   ---------- ----------  ----------
                                                      1997       1996        1995
-------------------------------------------------- ---------- ----------  ----------
<S>   <C>
  Balance as of end of period                      $       -- $       --  $       --
  Maximum outstanding month-end balance during
     the period                                     3,615,300  5,490,900   3,711,300
  Average outstanding month-end balance during
     the period                                       564,000    598,800     293,600
  Weighted average interest rate during the period      11.5%       8.4%        8.6%
  Interest rate at the end of period                    11.5%       8.3%        8.8%
================================================== ========== ==========  ==========
</TABLE>

  The weighted average interest rate has been calculated based upon the actual
  daily interest expense and the daily average balance outstanding. For the year
  ended August 31, 1997, the Company only maintained short-term borrowing
  balances during the months of April through August. Prior to April and at the
  end of August 1997, all borrowings were considered long term. For the year
  ended August 31, 1996, short-term balances were for nine months through May
  31, 1996.

  Long-term debt consists of the following:

<TABLE>
<CAPTION>
                                                                                  August 31,
-------------------------------------------------------------------------- -----------------------
                                                                               1997        1996
-------------------------------------------------------------------------- -----------  ----------
<S>   <C>
  Revolving credit facility payable to commercial bank effective August 22,
   1997, interest charged at LIBOR plus 250;
     facility expires September 1999                                        $1,827,700  $2,276,400
  Note payable to a commercial bank payable in equal monthly
     installments of $29,600, which includes interest at 9.1%,
     through December 1999 secured by certain computer
     equipment                                                                 720,500          --
  Note payable to a commercial bank payable in equal monthly
     installments of $43,651 through December 1997.  There-
     after, $21,429, plus interest charged at LIBOR plus 250;
     secured by leasehold improvements and certain analytical
     laboratory equipment                                                      431,800   1,032,700
-------------------------------------------------------------------------- -----------  ----------
  Total long-term debt                                                       2,980,000   3,309,100
  Less-current portion                                                        (648,300)   (644,600)
-------------------------------------------------------------------------- -----------  ----------
  Long-term portion                                                         $2,331,700  $2,664,500
========================================================================== ===========  ==========
</TABLE>

<PAGE>

  The debt repayment schedule for the outstanding notes payable is as follows:


  Year Ending
  August 31,
------------------------------------------------ ------------------
  1998..........................................        $ 648,300
  1999..........................................          416,500
  2000..........................................        1,915,200
  2001 and thereafter...........................                0
------------------------------------------------ ------------------
  Total notes payable...........................       $2,980,000
================================================ ==================


  The fair value of the Company's outstanding indebtedness approximated its
  carrying value at August 31, 1997.


  Note 5.  LEASE COMMITMENTS:

  The Company's central office, laboratory facilities, regional offices, and
  certain furniture and equipment are held under operating leases. These leases
  expire at various dates through fiscal 2007, and certain leases call for
  annual proportionate increases due to property taxes and certain other
  operating expenses. Lease expense amounted to $8,030,200, $8,912,300, and
  $8,469,300 for the years ended August 31, 1997, 1996, and 1995, respectively.
  Lease expense included payments of approximately $2,016,500, $2,054,900, and
  $1,985,300 for years ended August 31, 1997, 1996, and 1995, respectively, to
  partnerships consisting of the Chairman of the Board of EA and certain members
  of his family for its central office, and Loveton, Maryland, regional office
  and laboratory facility. These payments include reimbursements of
  approximately $965,000 per year for pass-through taxes and operating expenses
  incurred by the lessor which include local property taxes, janitorial and
  mechanical equipment maintenance, and utility costs related to the operation
  of both office and laboratory leased space. Management of the Company believes
  the terms and conditions of the transactions between the Company and entities
  with which the Chairman is affiliated, are at least as favorable to the
  Company as could have been obtained from third parties and are in the best
  interest of the Company.

  The minimum lease commitments under noncancellable operating leases are as
follows:


  Year Ending
   August 31,
----------------------------------------------------------
  1998...................................      $ 4,396,700
  1999...................................        3,000,000
  2000...................................        2,189,100
  2001 ..................................        1,850,300
  2002...................................        1,771,500
  2003 and thereafter....................        7,660,500
----------------------------------------------------------
  Total minimum payments.................      $20,868,100
==========================================================
<PAGE>



  Note 6.  NET INCOME (LOSS) PER SHARE:

  Net income (loss) per share is based on the weighted average number of shares
  of common stock and common stock equivalents outstanding during the period,
  and have been adjusted retroactively to reflect two 3 for 2 stock splits,
  effected in the form of 50% stock dividends wherein, on February 23, 1994 and
  July 5, 1994, 1 additional share of stock was issued for each 2 shares
  outstanding as of the record dates of February 8, 1994 and June 28, 1994,
  respectively. Common stock equivalents are calculated using the treasury stock
  method. All disclosures with regard to the shares of common stock have been
  adjusted to reflect these stock splits.


  Note 7.  PROFIT SHARING:

  EA maintains a defined contribution plan in which all employees who are at
  least 21 years of age and have completed six months of credited service, as
  defined by the plan, are eligible to participate. The plan provides for
  discretionary employer contributions for each fiscal year, in amounts
  determined annually by the Board of Directors. The plan also includes a 401(k)
  provision, allowing for Company matching contributions. For the years ended
  August 31, 1997, 1996, and 1995, matching contributions to the plan made under
  the 401(k) provisions of the plan, were $534,900, $729,200, and $710,400,
  respectively. Certain officers and stockholders of the Company serve as
  trustees to the plan, as appointed by the Board of Directors.


  Note 8.  STOCK OPTION AND EMPLOYEE STOCK PURCHASE PLANS:

  The Company maintains a Stock Option Plan (the Plan), which provides for the
  grant of nonqualified stock options and incentive stock options to certain key
  employees and officers of the Company. The exercise price of an option granted
  under the Plan may not be less than the fair market value of the underlying
  shares of Common Stock on the date of the grant. A total of 580,200 options
  are issued and outstanding as of August 31, 1997 having an average exercise
  price of $2.34. Of the outstanding options, 200,000 were granted to Donald A.
  Deieso on February 26, 1997 when he joined the Company as President and CEO.
  The exercise amount of the 200,000 shares is $2.25, which was equal to the
  market price on the grant date. There are 340,000 options available for
  issuance as of August 31, 1997.

  The Company maintains an Employee Stock Purchase Plan to provide eligible
  employees with the opportunity to purchase shares of the Company's Common
  Stock through voluntary payroll deductions. Under the Plan, eligible employees
  may purchase shares through monthly payroll deductions at 95% of current
  market value at the time of purchase. The Company pays all administrative
  expenses related to employee purchases. A total of 155,400 shares remain
  authorized for distribution under the Plan as of August 31, 1997.

  The Company maintains two Non-Employee Director Stock Option Plans (1993 and
  1995) which provide for the granting of nonqualified stock options to its
  non-employee directors. The exercise price of the 36,000 options, which were
  outstanding as of August 31, 1997 ranged between $2.375 and $6.125, which
  equaled the fair market value at the dates of grant. A total of 41,500 options
  remain reserved for the Director Stock Option Plans as of August 31, 1997.

<PAGE>

  The Company accounts for these plans under APB Opinion No. 25, under which no
  compensation cost has been recognized. Had compensation cost for plans been
  determined consistent with FASB Statement No. 123, the Company's net loss and
  loss per share would have changed the following pro forma amounts:


                                               1997             1996
---------------------  --------------        ----------      ---------
  Net Loss:              As Reported         $5,407,600       $580,100
                         Pro Forma            5,470,200        580,100

  Loss Per Share         As Reported              $0.87          $0.09
                         Pro Forma                 0.88           0.09

  A summary of the status of the Company's Employee Stock Option Plan and
  Non-Employee Director Stock Option Plans (1993 and 1995) follows:

<TABLE>
<CAPTION>
                                                    1997                          1996                          1995
                                       -----------------------------  ---------------------------  ----------------------------
                                           Shares        Wgtd.Avg.       Shares       Wgtd.Avg.       Shares       Wgtd.Avg.
                                           (000)        Exer.Price        (000)      Exer.Price        (000)       Exer.Price
                                       ------------  ---------------  ----------- ---------------  ----------- ----------------
<S>   <C>
  Outstanding at beginning of year              180            $4.13          341           $4.30          477            $2.34
  Granted                                       506             2.10           11            4.61          134             6.13
  Exercised                                      --               --         (28)            1.41        (265)             1.68
  Forfeited                                    (70)             4.96        (144)            5.08          (5)             4.37
  Expired                                        --               --           --              --           --               --
                                       ------------  ---------------  ----------- ---------------  ----------- ----------------
  Outstanding at end of year                    616             2.37          180            4.13          341             4.30
                                       ------------  ---------------  ----------- ---------------  ----------- ----------------
  Exercisable at year end                       164            $2.99          136           $3.40          128            $2.40

  Weighted Average Fair Value of
  Options Granted                             $0.96                         $1.79                          N/A
</TABLE>

  The fair value of each option grant is estimated on the date of grant using
  the Black-Scholes option pricing model with the following weighted-average
  assumptions used for grants in 1997 and 1996: Risk-free interest rates ranging
  from 5.19% to 6.68%; expected volatility is 62%.


  Note 9.  COMPANY RESTRUCTURING

  On March 25, 1997 the Company announced a major organizational realignment to
  reposition itself in the marketplace. In connection with the restructuring,
  the Company incurred charges of $3,000,100 during the third quarter related to
  severance, planned reduction in office space, the suspension of the
  implementation of a new project/financial system, and other related costs.

<PAGE>

  This restructuring included a staff reduction of approximately 125 employees.

  As of August 31, 1997, the Company had accruals of $880,100 included as other
  current liabilities in the accompanying consolidated balance sheet for costs
  to be incurred in future periods.

  Note 10.  RELATED PARTY TRANSACTIONS

  At the request of its former primary lender and in order to maintain its
  favorable relationship with that lender, the Company in December 1996
  purchased from this lender the secured loans of three EA officers. These
  interest-free demand loans, in the aggregate amount of $301,000, are secured
  by pledges of the Company's common stock.

  ITEM 9.  DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

       None.

  (PAGE)

<PAGE>

                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

  To the Board of Directors and Stockholders of
  EA Engineering, Science, and Technology, Inc.:

  We have audited the accompanying consolidated balance sheets of EA
  Engineering, Science, and Technology, Inc. (a Delaware corporation) and
  subsidiaries as of August 31, 1997 and 1996, and the related consolidated
  statements of operations, changes in stockholders' equity and cash flows for
  each of the three years in the period ended August 31, 1997. These financial
  statements are the responsibility of the Company's management. Our
  responsibility is to express an opinion on these financial statements based on
  our audits.

  We conducted our audits in accordance with generally accepted auditing
  standards. Those standards require that we plan and perform the audit to
  obtain reasonable assurance about whether the financial statements are free of
  material misstatement. An audit includes examining, on a test basis, evidence
  supporting the amounts and disclosures in the financial statements. An audit
  also includes assessing the accounting principles used and significant
  estimates made by management, as well as evaluating the overall financial
  statement presentation. We believe that our audits provide a reasonable basis
  for our opinion.

  In our opinion, the financial statements referred to above present fairly, in
  all material respects, the financial position of EA Engineering, Science, and
  Technology, Inc. and subsidiaries as of August 31, 1997 and 1996, and the
  results of their operations and their cash flows for each of the three years
  in the period ended August 31, 1997, in conformity with generally accepted
  accounting principles.


  /s/ ARTHUR ANDERSEN LLP

  Baltimore, Maryland
  November 14, 1997

  (PAGE)

  DIRECTORS AND OFFICERS

  Directors

  Edmund J. Cashman, Jr.*
  Senior Executive Vice President and Director of Legg Mason, Inc.; Senior
  Executive Vice President of Legg Mason Wood Walker, Incorporated; Director of
  Bartlett Capital Trust, Inc.

  Donald A. Deieso, Ph.D.
  President and Chief Executive Officer of the
  Company

  Loren D. Jensen, Ph.D.
  Chairman of the Board of the Company

<PAGE>

  Rudolph P. Lamone, Ph.D.*
  Chairman of the Board, Michael D. Dingman
  Center for Entrepreneurship, University of
  Maryland College of Business and Management

  Cleaveland D. Miller, Esq.*
  Chairman, Semmes, Bowen & Semmes,
  a Professional Corporation; Director,
  Barry's Jewelers, Inc.

  George G. Radcliffe*
  Chairman of the Board, Emeritus, The Baltimore
  Life Insurance Company; Trustee Emeritus of
  The Johns Hopkins University


  *Audit and Compensation Committee Member

  (PAGE)

  Officers

  Loren D. Jensen, Ph.D., Chairman of the Board; Director, Yaffe & Company, Inc.

  Donald A. Deieso, Ph.D., President and Chief Executive Officer

  Bijan S. Saless, Executive Vice President, Sales and Marketing

  Joseph A. Spadaro, Executive Vice President, Treasurer,
  Assistant Secretary, and Chief Financial Officer

  Charles R. Flynn, Ph.D., Senior Vice President,
  Market Sector Director, Federal Programs

  Edward M. Greco, Senior Vice President,
  President, EA International, Inc.

  David S. Santoro, Senior Vice President, Project Risk Management

  Jack P. Adler, Esq., Vice President, Secretary and General Counsel

  H. Lee Becker, Vice President,
  Branch Operations

  Clayton A. Bock, Vice President,
  Director, Health and Safety

  B. Fritts Golden, Vice President,
  Branch Operations

  Anwer J. Hasan, Vice President,
  Project Administration

<PAGE>

  Reza Karimi, Ph.D., Vice President,
  Director, EA Laboratories

  Ellen Leinfuss, Vice President,
  Marketing and Communications

  Donald R. Lutch, Vice President,
  National Technical Director

  Neil P. Mulvey, Vice President,
  Branch Operations

  Robert P. Newman, Vice President,
  National Technical Director

  Barbara L. Posner, Vice President,
  Finance and Administration

  Robert J. Reimold, Ph.D., Vice President,
  National Technical Director

  (PAGE)

  Stockholder Information


  Independent Public Accountants
  Arthur Andersen LLP
  Baltimore, Maryland

  Legal Counsel
  Semmes, Bowen & Semmes
  Baltimore, Maryland

  Registrar and Transfer Agent
  ChaseMellon Shareholder Services
  Pittsburgh, Pennsylvania

  Common Stock Listing
  NASDAQ Symbol:  EACO

  Annual Meeting
  The Annual Meeting of the Stockholders will be held on January 14, 1998 at
  9:00 a.m. (EST) at Marriott's Hunt Valley Inn in Hunt Valley, Maryland.

  SEC Form 10-K
  The Company's Form 10-K Annual Report for the year ended August 31, 1997 has
  been filed with the Securities and Exchange Commission. A copy of this
  Report is available upon request.

<PAGE>

  Corporate Headquarters
  EA Engineering, Science, and Technology, Inc.
  11019 McCormick Road
  Hunt Valley, Maryland  21031
  (410) 584-7000
  www.eaest.com.


  Marketing for the Registrant's Common Equity and Related Stockholder Matters

  On October 31, 1986, EA common stock began public trading in the
  over-the-counter market under the symbol "EACO." The following table shows the
  high and low closing sales price reported on the NASDAQ National Market
  System. Such over-the-counter market quota-tions, however, reflect interdealer
  prices, without retail markup, markdown, or commission and may not necessarily
  represent actual transactions. These prices are adjusted to reflect EA's two 3
  for 2 splits, each effected in the form of a 50 percent stock dividend on
  January 25, 1994 and June 14, 1994.



                                        High          Low
-------------------------------     ------------ ------------
  Fiscal 1996:
  First Quarter                            5.25         3.75
  Second Quarter                           4.13         3.50
  Third Quarter                            4.00         2.88
  Fourth Quarter                           3.50         2.25
  Fiscal 1997:
  First Quarter                            2.59         1.50
  Second Quarter                           2.75         1.75
  Third Quarter                            2.25         1.63
  Fourth Quarter                           2.22         1.75

  (PAGE)

  BACK COVER

  Corporate Headquarters

  EA Engineering, Science, and Technology, Inc.
  11019 McCormick Road
  Hunt Valley, MD 21030
  Phone: (410) 584-7000
  Fax: (410) 771-1625
  www.eaest.com

  List of cities where EA Engineering, Science, and Technology, Inc. has a
  branch office.  Each location is separated by a different shape building
  block.

  Anchorage, AK . Fairbanks, AK . Sacramento, CA . San Francisco, CA . Santa
  Barbara, CA . New Castle, DE . Washington, DC . Miami, FL . Pensacola, FL .
  Atlanta, GA . Yigo, GU . Honolulu, HI . Chicago, IL . Baltimore, MD . Boston,
  MA . Mexico City, MX . Lincoln, NE . Berkeley Heights, NJ . Newburgh, NY .
  Syracuse, NY . Dallas, TX . San Antonio, TX . Williamsburg, VA . Seattle, WA