MEK Metretek Technology

Metretek Technologies, Inc. (AMEX:MEK) said today that it is revising guidance for 2005 due to the combined effects on its Southern Flow subsidiary of Hurricanes Katrina and Rita. According to W. Phillip Marcum, president and CEO, "We now anticipate that Southern Flow will likely see its 2005 net income reduced by as much as $600,000 due to substantial damages to oil and gas production facilities in the Gulf Coast area. As a result, although we still expect that revenues for the year will exceed $41 million, we are reducing our estimate of 2005 net income from continuing operations from $3.0 million to $2.4 million, or approximately $0.19 per basic share." Marcum noted that Southern Flow's seven Gulf Coast division offices and related assets experienced no major damage. However, production assets owned by many of Southern Flow's Gulf Coast customers were heavily damaged and the affected assets may be out of service for indefinite periods. As a result, some Southern Flow services to such customers are likely to be curtailed until such time as damage can be repaired and normal operations can be restored. Marcum added, "We see this as a temporary interruption of Southern Flow's revenues, and we expect that operations will return to normal levels by early 2006." On September 2, 2005, immediately after Hurricane Katrina, the Company issued a press release announcing that it expected net income to be reduced by no more than $250,000 as a direct result of Katrina. Hurricane Rita exacerbated the problem by damaging production facilities in areas of the Gulf Coast that did not see significant damage from Katrina, and led to the current revision to the Company's guidance. Metretek Technologies, Inc. through its subsidiaries -- Southern Flow Companies, Inc.; PowerSecure, Inc.; and Metretek, Incorporated (Metretek Florida) -- is a diversified provider of energy measurement products, services and data management systems to industrial and commercial users and suppliers of natural gas and electricity. All forward-looking statements contained in this release, including statements concerning the likely effects of Hurricanes Katrina and Rita on the Company's operations are made within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management and statements of assumptions underlying the foregoing, and are often, but not always, identified by words such as "may," "expect," "will," "believe," "optimistic," "anticipate" and similar terminology. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements, including, but not limited to, the Company's ability to develop and market its products and services and to deliver anticipated benefits to its customers; the Company's ability to maintain sufficient capital and liquidity on favorable terms to meet its operating, working capital and debt service requirements and other capital commitments and contingencies and to fund the growth of its business; the effects of recent and future hurricanes and other acts of God on the Company's customers; changes in the energy industry in general and the natural gas and electricity markets in particular; the effects of competition; the ability of the Company to secure and maintain key contracts and relationships; general economic, market and business conditions; and other factors, risks and uncertainties described from time to time in the Company's reports and filings with the Securities and Exchange Commission, including but not limited to the Company's most recent Form 10-K and Form 10-Q and subsequently filed Forms 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.