Metretek Technologies Reports Third-Quarter Revenues and Net Income

DENVER -- For the three months ended September 30, 2006, Metretek Technologies, Inc. (AMEX:MEK) reported quarterly revenues of $33.4 million and net income of $2.9 million, or $0.17 per diluted share ($0.19 per basic share). In the comparable period a year ago, the Company reported revenues of $10.2 million and net income of $169,000, or $0.01 per diluted and basic share.

For the nine months ended September 30, 2006, the Company reported record revenues of $84.5 million and record net income of $7.8 million, or $0.47 per diluted share ($0.52 per basic share), compared to revenues of $32.0 million and net income of $825,000, or $0.06 per diluted share ($0.07 per basic share) for the first nine months of 2005.

"We are extremely pleased with the performance of all business segments during the quarter," said W. Phillip Marcum, president and chief executive officer. "PowerSecure reported another exceptional quarter with $28.2 million in revenues, and Southern Flow remains solidly profitable, with revenues up 27% versus the same period a year ago.

"In short," said Marcum, "we continue to execute our business plan and believe that we are on track to meet our 2006 financial goals, as well as goals set for 2007. Moreover, we continue to view the future with optimism. Our balance sheet remains exceptionally strong and is, we believe, more than adequate to fund the continuing growth of the Company. At September 30, we had $18 million in cash and cash equivalents, $34 million in working capital, no long-term debt, zero balance on our credit lines, and stockholders' equity of $54 million." According to Sidney Hinton, president and CEO of PowerSecure, "I am extremely pleased with our success and progress in addressing the challenges cited last quarter relative to dealing with our incredible growth. Our success in dealing with these issues is beginning to show up in our results, as evidenced by a third-quarter improvement in gross margins, and we anticipate additional margin improvements in future quarters. I would be remiss if I did not recognize the Herculean efforts put forth by our tireless, dedicated and innovative employees in making this success a reality."

Guidance Update for 2006:

The Company is reaffirming its previously issued net income guidance for 2006, with net income anticipated to be in the range of $11 million to $12 million, or $0.68 to $0.72 per diluted share ($0.76 to $0.80 per basic share). Sales in 2006 are now expected to be approximately $117 million. The estimate of 2006 earnings per share includes approximately $800,000 ($0.05 per diluted and basic share) of non-cash stock and stock option compensation expense.

Initial Guidance for 2007:

For its fiscal year 2007, the Company anticipates net income of approximately $15.5 million on total revenues of approximately $137 million, or $0.89 per diluted share ($0.97 per basic share). Estimated 2007 results include non-cash stock option compensation expense of approximately $900,000 ($0.05 per diluted and basic share).

Conference Call and Webcast:

At 9 a.m. MST (11 a.m. EST) today, November 6, the Company will hold a teleconference to discuss the financial results and future plans and prospects. To participate in the teleconference, please call (toll free) 800-291-8929 (or 706-634-0478 for international callers) approximately 10 minutes prior to the start time and indicate that you are dialing in to the Metretek Technologies conference call.

The call is also being webcast and can be accessed live via the Internet at the Company's website, www.metretek.com; to access the call, click on the "Investor Info" button and then click on the icon for the "2006 third-quarter results teleconference." The webcast player will open following completion of a brief registration process. The webcast will also be available at www.earnings.com; to access the call, type in Metretek's stock symbol, MEK, in the top right corner of the home page to be taken to the Company's webcast page. For those unable to attend, these websites will host an archive of the call.