þ
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ANNUAL
REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For
the fiscal year ended December 31, 2007
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OR
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□
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TRANSITION
REPORT PURSUANT TO SECTION 15(d) OF THE SECURITES EXCHANGE ACT OF
1934
For
the transition period
from to .
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Item
1.
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Not
applicable.
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Item
2.
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Not
applicable
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Item
3.
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Not
applicable
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Item
4.
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Financial
Statements of the Plan
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The
Financial Statements of the Ecology and Environment, Inc. 401(k) Plan (the
Plan) for the fiscal years ended December 31, 2007 and 2006, together with
the report of Schneider Downs & Co., Inc., Independent Registered
Public Accounting Firm, is included in this Annual Report on Form 11-K,
and are by specific reference incorporated herein and filed as a part
hereof. The Financial Statements and the Notes thereto are
presented in lieu of the financial statements required by Items 1, 2 and 3
of Form 11-K. The Plan is subject to the requirements of the
Employee Retirement Income Security Act of 1974 (ERISA).
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Exhibits:
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Exhibit
Number
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Description
of Exhibit
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23.1
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Consent
of Schneider Downs & Co., Inc., Independent Registered Public
Accounting Firm
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Page
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Report
of Independent Registered Public Accounting Firm
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1
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Financial
Statements:
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Statements
of Net Assets Available for Benefits
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2
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Statements
of Changes in Net Assets Available for Benefits
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3
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Notes
to Financial Statements
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4 -
9
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Supplemental
Schedule:
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Schedule
H, line 4i - Schedule of Assets Held at End of Year
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10
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2007
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2006
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Assets
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Investments,
at fair value (see Note 6)
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$ | 27,061,717 | $ | 24,692,149 | ||||
Dividends
receivable
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8,129 | 8,118 | ||||||
Total assets
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27,069,846 | 24,700,267 | ||||||
Liabilities
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||||||||
Excess
contributions
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56,625 | - | ||||||
Total liabilities
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56,625 | - | ||||||
Net
assets available for benefits
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$ | 27,013,221 | $ | 24,700,267 |
2007
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2006
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Additions
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||||||||
Additions to net assets
attributed to:
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Interest
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$ | 27,128 | $ | 20,617 | ||||
Dividends
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1,131,187 | 830,579 | ||||||
Net appreciation in fair value of
investments (see Note 6)
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658,997 | 2,067,458 | ||||||
1,817,312 | 2,918,654 | |||||||
Participant
contributions
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2,321,516 | 2,074,362 | ||||||
Rollover
contributions
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66,813 | 80,787 | ||||||
2,388,329 | 2,155,149 | |||||||
Total additions
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4,205,641 | 5,073,803 | ||||||
Deductions:
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Deductions from net assets
attributed to:
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Benefits paid to
participants
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1,824,507 | 996,558 | ||||||
Other
distributions
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56,625 | - | ||||||
Administrative
expenses
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11,555 | 11,175 | ||||||
Total
deductions
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1,892,687 | 1,007,733 | ||||||
Net
increase
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2,312,954 | 4,066,070 | ||||||
Net
assets available for benefits:
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Beginning of
year
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24,700,267 | 20,634,197 | ||||||
End of year
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$ | 27,013,221 | $ | 24,700,267 |
1.
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Description
of Plan
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2.
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Summary
of Accounting Policies
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3.
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Plan
Termination
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Although
it has not expressed any intent to do so, the Company has the right under
the Plan to discontinue at any time and to terminate the Plan subject to
the provisions of ERISA. In the event of Plan termination,
participants will become 100 percent vested in their
accounts.
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4.
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Tax
Status
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The
Plan Administrator has not applied to the Internal Revenue Service for a
determination letter for the Plan. The Plan is based upon a
prototype plan designed by MFS Retirement Services, Inc. that received a
favorable determination letter dated April 23, 2002. The Plan
has been amended since MFS received the determination
letter. However, the legal counsel has advised the Plan
Administrator and the Plan Administrator believes that the Plan is
currently designed and being operated in compliance with the applicable
requirements of the Internal Revenue Code. Therefore no
provision for income taxes has been included in the Plan’s financial
statements.
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5.
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Risks
and Uncertainties
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The
Plan invests in various investment securities. Investment
securities are exposed to various risks such as interest rate, market, and
credit risks. Due to the level of risk associated with certain
investment securities, it is at least reasonably possible that changes in
the values of investment securities will occur in the near term and that
such changes could materially affect participants' account balances and
the amounts reported in the statement of net assets available for
benefits.
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6.
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Investments
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The
following presents investments that represent five percent or more of the
Plan's net assets at December 31,
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2007
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2006
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MFS
Value Fund A, 166,363 and 154,391 shares, respectively
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$ | 4,413,623 | $ | 4,133,052 | ||||
DWS
Equity 500 Index Fund S, 26,535 and 27,605 shares,
respectively
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4,367,348 | 4,387,585 | ||||||
Thornburg
Core Growth Fund A, 219,422 and 214,886 shares,
respectively
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4,366,500 | 3,840,008 | ||||||
MFS
Fixed Fund Institutional, 2,939,236 and 2,478,711 shares,
respectively
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2,939,236 | 2,478,711 | ||||||
MFS
Core Growth Fund A, 93,231 and 97,414 shares, respectively
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1,948,520 | 1,840,141 | ||||||
Allianceber
International Value Fund A, 78,000 and 0 shares,
respectively
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1,729,267 | 0 | * | |||||
Fidelity
Low Priced Stock Fund, 39,920 and 111,946 shares,
respectively
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1,641,894 | 1,526,946 | ||||||
Templeton
Foreign Fund, 0 and 111,946 shares, respectively
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0 | * | 1,526,946 | |||||
MFS
Research Bond Fund, 0 and 122,989 shares, respectively
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0 | * | 1,231,117 | |||||
*Less
than 5%, presented for comparative purposes.
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6.
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Investments
(continued)
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The
Plan's investments for the years ended December 31, 2007 and 2006
(including gains and losses on investments bought and sold, as well as
held during the year) appreciated in value as
follows:
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2007
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2006
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Mutual
funds and pooled separate accounts
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$ | 624,303 | $ | 1,994,844 | ||||
Ecology
and Environment, Inc. Common Stock
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34,694 | 72,614 | ||||||
$ | 658,997 | $ | 2,067,458 |
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The
Fixed Fund Institutional investment is held in a Guaranteed Interest
Account (the GIA) held by SEI Trust Company (Trustee). The
underlying assets of the GIA include fully benefit-responsive investment
contracts (the contracts). The crediting interest rates on the
contracts ranged from 4.88% to 4.84% at December 31, 2007 and 2006,
respectively.
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The
GIA’s key objectives are to provide preservation of principal, maintain a
stable interest rate, and provide daily liquidity at contract value for
participant withdrawals and transfers in accordance with the provisions of
the Plan.
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The
average yield on the GIA earned by the Plan based on actual earnings was
5.60% and 5.50% at December 31, 2007 and 2006,
respectively. The average yield earned by the Plan based on
interest rate credited to participants was 4.90% and 4.93% for December
31, 2007 and 2006, respectively.
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7.
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Transactions
with Parties-in-Interest
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As
of December 31, 2007 and 2006, the Plan held certain securities issued by
the Company as follows:
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December
31, 2007
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December
31, 2006
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|||||||||||||||
Number
of Shares
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Fair
Value
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Number
of
Shares
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Fair
Value
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Ecology and Environment,
Inc. Common Stock
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45,158 | $ | 500,802 | 45,101 | $ | 491,601 |
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Dividends
on Ecology and Environment, Inc. Common Stock amounted to approximately
$16,200 during the years ended December 31, 2007 and
2006.
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Certain
plan investments are shares of mutual funds and pooled separate accounts
offered by MFS Retirement Services (MFS). MFS is also
recordkeeper of the Plan and custodian of all investments other than
Company stock.
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During
the years ended December 31, 2007 and 2006, the Plan's investments with
MFS (including gains and losses on investments bought and sold, as well as
held during the year) appreciated in value by $82,695 and $959,070,
respectively.
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(a)
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Shares
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(b) Identity
of Issuer Borrower, Lessor or Similar Party
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(c) Description
of Investment including Maturity Date, Rate of Interest, Collateral, Par,
or Maturity Value
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(d) Cost
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(e) Current
Value
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MFS
Retirement Services, Inc.:
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*
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166,363
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MFS
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Value
Fund A
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**
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$ 4,413,623
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*
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2,939,236
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MFS
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Fixed
Fund Institutional
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**
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2,939,236
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*
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93,231
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MFS
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Core
Growth Fund
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**
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1,948,520
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*
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132,645
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MFS
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Research
Bond Fund A
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**
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1,311,858
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*
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40,481
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MFS
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Aggressive
Growth Allocation Fund A
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**
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646,489
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*
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40,723
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MFS
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Total
Return Fund A
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**
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620,624
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*
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23,366
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MFS
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Growth
Allocation Fund A
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**
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351,422
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*
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14,049
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MFS
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Moderate
Allocation Fund A
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**
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192,328
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*
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117,194
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MFS
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Money
Market
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**
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117,194
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*
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3,063
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MFS
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Conservative
Allocation Fund A
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**
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37,583
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12,578,877
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Other
Investments:
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26,535
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DWS
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Equity
500 Index Fund
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**
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4,367,348
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219,422
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Thornburg
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Core
Growth Fund
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**
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4,366,500
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78,000
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Allianceber
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International
Value Fund A
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**
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1,729,267
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39,920
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Fidelity
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Low
Priced Stock Fund
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**
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1,641,894
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812,131
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-
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Brokerage
Access Account
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**
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812,131
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*
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22,976
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Columbia
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Acorn
Fund
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**
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663,303
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45,158
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Ecology
and Environment, Inc.
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Common
Stock
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**
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500,802
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*
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4,907
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Domini
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Social
Equity Fund
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**
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157,277
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-
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Participant
Loans
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(5.00%
- 9.50%)
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-0-
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244,318
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$ 27,061,717
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*
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Indicates
parties-in-interest to the Plan.
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**
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Cost
not required to be presented for participant directed
investments.
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SIGNATURES
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Name
of Plan:
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Ecology
and Environment, Inc. 401(k) Plan
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By:
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Ecology
and Environment, Inc. 401(k) Plan Committee Plan
Administrator
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Date:
June 24, 2008
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By:
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/s/
Ronald L. Frank
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Ronald
L. Frank
Committee
Member
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