Metretek Technologies Reports 2005 Results; Company Increases 2006 Revenue and Net Income Guidance

For the twelve months ended December 31, 2005, Metretek
Technologies, Inc. (AMEX:MEK) reported record revenues of $47.3
million and record income from continuing operations of $2.6 million,
or $0.21 per basic share, compared to revenues of $35.2 million and
income from continuing operations of $1.6 million, or $0.03 per basic
share, in 2004. Net income in 2005, after a $300,000 loss from
discontinued operations, was a record $2.3 million, or $0.19 per basic
share, compared to a net loss, after a $4.8 million loss from
discontinued operations, in 2004 of $3.2 million, or $(0.47) per
share.
   For the three months ended December 31, 2005, the Company reported
revenues of $15.2 million and income from continuing operations and
net income of $1.5 million, or $0.12 per basic share. In the
comparable period a year ago, the Company reported revenues of $9.2
million, income from continuing operations of $723,000, or $0.05 per
basic share, and net income of $413,000, or $0.02 per basic share.
   "In terms of both sales and operating performance, 2005 was by far
the most successful year in Metretek's history," said W. Phillip
Marcum, president and chief executive officer of Metretek
Technologies. "Year-over-year, revenues increased by $12.1 million, or
34%, to $47.3 million; equally gratifying, income from continuing
operations increased by 67% to $2.6 million. The bulk of the credit
goes to our PowerSecure subsidiary, whose revenues of $30.2 million
were 62% higher than in the prior year, and whose segment profit was a
record $2.6 million. We also continued the strengthening of our
balance sheet, ending the year with almost $5 million in working
capital, approximately $3.2 million in additional borrowing capacity
to further support working capital, and shareholders' equity of $16.2
million.
   "Several recent developments have solidified our outlook for 2006,
and we are anticipating a great year," said Marcum. "In addition to
the many new projects announced by our PowerSecure subsidiary, our
outlook for Southern Flow has also improved, as it is now exceeding
our expectations and has fully recovered from the substantial adverse
effects of last year's hurricanes."
   According the Sidney Hinton, president and CEO of PowerSecure,
"Since November, PowerSecure has announced new distributed generation
projects totaling approximately $133 million, of which $83 million are
scheduled for completion in 2006, with the remainder scheduled for
2007. Our sales processes have been absolutely on target and place us
in the enviable position of having project backlog that easily
supports PowerSecure's revised 2006 revenue target of $90 million.
Now, the key to meeting our projections is execution. Despite forgoing
a meaningful portion of our normal margins on the projects associated
with our largest customer, we still expect to maintain reasonable
overall margins within PowerSecure due to a good mix of higher margin
projects, services and products."
   "While the overall outlook for 2006 is extremely positive, our
business has fluctuated and will continue to fluctuate substantially
from quarter to quarter, as demonstrated in the fourth quarter of
2005," added Marcum. "Our stakeholders should expect that
PowerSecure's revenue recognition in 2006 will be subject to numerous
influences and will be heavily skewed toward the last nine months of
the year. Moreover, because PowerSecure will incur substantial
additional overhead in advance of revenues to support its ambitious
2006 production plan," said Marcum, "we expect that the first quarter
may show consolidated net operating results of breakeven to a small
net loss."

   Updated Guidance for 2006:

   For its fiscal year 2006, the Company now anticipates that net
income will be in the range of $10 million to $13 million, or
approximately $0.75 to $1.00 per basic share, on total revenues of
approximately $110 million, including approximately $90 million in
sales contributed by PowerSecure.

   Adjusted EBITDA:

   Adjusted EBITDA for the year ended December 31, 2005 was
$4,064,000, compared to $2,920,000 for the year ended December 31,
2004, a $1,144,000 increase.
   As computed by the Company, adjusted EBITDA is a non-GAAP
financial measure (as such term is defined by the Securities and
Exchange Commission) computed as income from continuing operations
before interest and finance charges, income taxes, depreciation and
amortization, and minority interest.
   By eliminating certain expenses not necessarily indicative of the
results of the Company's core operations, management believes that
adjusted EBITDA offers a useful tool to measure and monitor the
Company's operating performance, and provides meaningful information
to investors in terms of enhancing their understanding of the
Company's core operating performance and results. Adjusted EBITDA is
also used by management to assist in planning and forecasting future
operations. However, adjusted EBITDA as defined by the Company may not
be directly comparable to similarly defined measures as reported by
other companies. Adjusted EBITDA should be considered only as a
supplement to, and not as a substitute for or in isolation from, other
measures of financial performance and liquidity reported in accordance
with generally accepted accounting principles ("GAAP"), such as net
income.

   Conference Call and Webcast:

   At 2:30 p.m. MST (4:30 p.m. EST) today, March 15, the Company will
hold a teleconference to discuss the financial results and future
plans and prospects. To participate in the teleconference, please call
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.
   This call is 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 "2005 fourth-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. These
websites will host an archive of the teleconference. Additionally, a
playback of the call will be available for 48 hours beginning at 5:30
p.m. MST on March 15; you may access the playback by calling
800-642-1687 (or for international callers 706-645-9291) and providing
Conference ID number 6516727.

   About Metretek Technologies:

   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.

   Safe-Harbor Statement:

   All forward-looking statements contained in this press release are
made within the meaning of and under 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 but not limited to statements regarding the business
prospects for the Company and its subsidiaries; the outlook for
consolidated revenues and earnings in the first quarter and the full
year of 2006; the effects of the new orders on PowerSecure's business
and operations; the improved outlook for Southern Flow; and all other
statements concerning the plans, intentions, expectations,
projections, hopes, beliefs, objectives, goals and strategies of
management, including statements about other future financial and
non-financial items, performance or events and about present and
future products, services, technologies and businesses; and statements
of assumptions underlying any of the foregoing. 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. Important risks, uncertainties and other factors include,
but are not limited to, 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 timely and successful development, production and market
acceptance of new and enhanced products, services and technologies of
the Company; the ability of PowerSecure to develop and expand its core
distributed generation and its new energy-related businesses, services
and technologies, to manage its growth and to address the effects of
any future changes in tariff structures and environmental requirements
on its business solutions; effects from time to time of hurricanes and
other severe weather conditions on the demand for Southern Flow's
products and services; the ability of Metretek Florida to successfully
develop and expand its products, service, technologies and markets;
the effects of competition; changes in customer and industry demand
and preferences and purchasing patterns; the Company's ability to
attract, retain and motivate key personnel; the ability of the Company
to secure and maintain key contracts, relationships and alliances and
to make successful acquisitions; the effects of pending and future
litigation, claims and disputes; changes in the energy industry
generally and in the natural gas and electricity industries in
particular, including price levels; general economic, market and
business conditions; the effects of international conflicts and
terrorism; and other risks, uncertainties and other factors identified
from time to time in the Company's reports and filings with the
Securities and Exchange Commission. 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.
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                      METRETEK TECHNOLOGIES, INC.
      CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

                     Fourth Quarter Ended          Year Ended
                         December 31,              December 31,
                       2005         2004         2005         2004

Total revenues     $15,229,366  $ 9,208,424  $47,252,552  $35,176,923
Total costs and
 expenses           13,996,585    8,800,995   46,051,135   34,570,407
Operating income     1,232,781      407,429    1,201,417      606,516
Equity income          348,806      363,871    1,689,537    1,254,509
Minority interest      (42,521)     (36,951)    (210,875)    (238,389)
Income taxes           (30,000)     (11,603)     (45,690)     (47,590)
Income from
 continuing
 operations          1,509,066      722,746    2,634,389    1,575,046
Loss on
 discontinued
 operations                  -     (309,318)    (300,000)  (4,818,586)
Net income         $ 1,509,066  $   413,428  $ 2,334,389  $(3,243,540)

BASIC EARNINGS
 (LOSS) PER COMMON
 SHARE:
 Income from
  continuing
  operations       $      0.12  $      0.05  $      0.21  $      0.03
 Loss from
  discontinued
  operations              0.00        (0.03)       (0.02)       (0.50)
 Income (loss) per
  common share     $      0.12  $      0.02  $      0.19  $     (0.47)

DILUTED EARNINGS
 (LOSS) PER COMMON
 SHARE:
 Income from
  continuing
  operations       $      0.11  $      0.05  $      0.20  $      0.03
 Loss from
  discontinued
  operations              0.00        (0.03)       (0.02)       (0.48)
 Income (loss) per
  common share     $      0.11  $      0.02  $      0.18  $     (0.45)

WEIGHTED AVERAGE
 COMMON SHARES
 OUTSTANDING,
 BASIC              12,402,865   11,618,231   12,287,107    9,531,199
 DILUTED            14,194,512   12,014,467   13,360,515   10,035,730


           CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

                                             December 31, December 31,
                                                 2005         2004

Total current assets                         $18,234,054  $15,394,937
Property, plant and equipment, net             3,213,294    2,737,130
Total other assets                            11,871,578   12,078,849

Total assets                                 $33,318,926  $30,210,916

Total current liabilities                    $13,322,898  $10,278,052
Long-term notes payable and capital lease
 obligations                                   3,596,733    6,082,159
Liabilities of discontinued operations                --      843,649
Minority interest in subsidiaries                169,755       89,792
Total stockholders' equity                    16,229,540   12,917,264

Total liabilities and stockholders' equity   $33,318,926  $30,210,916


            RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME

In accordance with Regulation G, set forth below is a
reconciliation of Adjusted EBITDA, a non-GAAP financial measure, to
income from continuing operations, its most directly comparable
financial measure computed in accordance with GAAP.

                        Fourth Quarter Ended        Year Ended
                            December 31,            December 31,
                          2005        2004        2005        2004

Income from continuing
 operations            $1,509,066  $  722,746  $2,634,389  $1,575,046
Add back:
 Interest and finance
  charges                 113,519     136,417     608,963     480,110
 Income taxes              30,000      11,603      45,690      47,590
 Depreciation and
  amortization            171,106     172,635     563,889     578,516
 Minority interest         42,521      36,951     210,875     238,389
Adjusted EBITDA        $1,866,212  $1,080,352  $4,063,806  $2,919,651
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