IES Expands Solar Capabilities

  IES Expands Solar Capabilities

Business Wire

HOUSTON -- February 15, 2013

Integrated Electrical Services, Inc. (or “IES”) (NASDAQ: IESC), an
infrastructure services company with leading positions in a broad range of
markets for electrical and communications products and services, today
announced that it has entered into a definitive agreement to acquire certain
assets of the Acro Energy group (or “Acro”), a residential solar energy
integrator. The acquisition is subject to satisfaction of customary closing
conditions and is expected to close in the second quarter of 2013.

“Offering alternative energy services to the residential market represents a
long term growth market for IES Residential,” said Dwayne Collier, President
of IES Residential. “As Acro Energy’s exclusive installation provider since
late 2011, this acquisition will not only strengthen our position in the
residential solar market, but also provide IES Residential with Acro’s sales
force capabilities to cross-sell additional electrical services.”

Acro Energy markets and sells products and services through a sales
organization that includes a direct sales team, a call center and a customer
referral program. As part of the acquisition, over 70 employees and
independent contractors across Acro’s three offices will join IES.
Additionally, IES is assuming Acro’s backlog of contracts of over $4.0
million. Acro Energy is a top fifteen residential solar energy integrator in
the state of California.

The terms of the acquisition may be found on the Company’s quarterly report on
Form 10-Q filed with the Securities and Exchange Commission on February 14,
2013.

ABOUT INTEGRATED ELECTRICAL SERVICES, INC.

Integrated Electrical Services, Inc. is an infrastructure services company
that enjoys leading positions in a broad range of markets for electrical and
communications products and services. Our 2,500 employees serve clients
throughout the United States. For more information about IES, please visit
www.ies-corporate.com.

Certain statements in this release, including statements regarding the
restructuring plan and total estimated charges and cost reductions associated
with this plan, are "forward-looking statements" within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934, all of which are based upon various estimates and assumptions
that the Company believes to be reasonable as of the date hereof. In some
cases, you can identify forward-looking statements by terminology such as
“may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,”
“anticipate,” “believe,” “seek,” “estimate,” “predict,” “potential,” “pursue,”
“target,” “continue,” the negative of such terms or other comparable
terminology. These statements involve risks and uncertainties that could cause
the Company's actual future outcomes to differ materially from those set forth
in such statements. Such risks and uncertainties include, but are not limited
to, fluctuations in operating activity due to downturns in levels of
construction, seasonality and differing regional economic conditions;
competition in our respective industries, both from third parties and former
employees, which could result in the loss of one or more customers or lead to
lower margins on new projects; a general reduction in the demand for our
services; a change in the mix of our customers, contracts and business; our
ability to successfully manage projects; possibility of errors when estimating
revenue and progress to date on percentage-of-completion contracts; inaccurate
estimates used when entering into fixed-priced contracts; challenges
integrating new businesses into the Company or new types of work or new
processes into our divisions; the cost and availability of qualified labor;
accidents resulting from the physical hazards associated with our work and the
potential for accidents; success in transferring, renewing and obtaining
electrical and construction licenses; our ability to pass along increases in
the cost of commodities used in our business, in particular, copper, aluminum,
steel, fuel and certain plastics; potential supply chain disruptions due to
credit or liquidity problems faced by our suppliers; loss of key personnel and
effective transition of new management; warranty losses, damages or other
latent defect claims in excess of our existing reserves and accruals; warranty
losses or other unexpected liabilities stemming from former divisions which we
have sold or closed; growth in latent defect litigation in states where we
provide residential electrical work for home builders not otherwise covered by
insurance; limitations on the availability of sufficient credit or cash flow
to fund our working capital needs; difficulty in fulfilling the covenant terms
of our credit facilities; increased cost of surety bonds affecting margins on
work and the potential for our surety providers to refuse bonding or require
additional collateral at their discretion; increases in bad debt expense and
days sales outstanding due to liquidity problems faced by our customers;
changes in the assumptions made regarding future events used to value our
stock options and performance-based stock awards; the recognition of potential
goodwill, long-lived assets and other investment impairments; uncertainties
inherent in estimating future operating results, including revenues, operating
income or cash flow; disagreements with taxing authorities with regard to tax
positions we have adopted; the recognition of tax benefits related to
uncertain tax positions; complications associated with the incorporation of
new accounting, control and operating procedures; the financial impact of new
or proposed accounting regulations; the ability of our controlling shareholder
to take action not aligned with other shareholders; the possibility that
certain tax benefits of our net operating losses may be restricted or reduced
in a change in ownership; credit and capital market conditions, including
changes in interest rates that affect the cost of construction financing and
mortgages, and the inability for some of our customers to retain sufficient
financing which could lead to project delays or cancellations; the sale or
disposition of the shares of our common stock held by our majority
shareholder, which, under certain circumstances, would trigger change of
control provisions in contracts such as employment agreements and financing
and surety arrangements; and additional closures or sales of facilities could
result in significant future charges and a significant disruption of our
operations. You should understand that the foregoing, as well as other risk
factors discussed in this document and in the Company’s annual report on Form
10-K for the year ended September 30, 2012 and the Company's quarterly report
on Form 10-Q for the quarter ended December 31, 2012, could cause future
outcomes to differ materially from those expressed in such forward-looking
statements. The Company undertakes no obligation to publicly update or revise
any information, including information concerning its controlling shareholder,
net operating losses, restructuring efforts, borrowing availability, or cash
position, or any forward-looking statements to reflect events or circumstances
that may arise after the date of this release.

Forward-looking statements are provided in this press release pursuant to the
safe harbor established under the private Securities Litigation Reform Act of
1995 and should be evaluated in the context of the estimates, assumptions,
uncertainties, and risks described herein.

General information about Integrated Electrical Services, Inc. can be found at
http://www.ies-corporate.com under "Investors." The Company’s annual report on
Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, as
well as any amendments to those reports, are available free of charge through
the Company’s website as soon as reasonably practicable after they are filed
with, or furnished to, the SEC.

Contact:

Integrated Electrical Services, Inc.
James Lindstrom, CEO
203-992-1111
or
ICR Inc.
Phil Denning, 203-682-8246
phil.denning@icrinc.com
 
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