Metretek Technologies Reports Profitable First-Quarter

For the three months ended March 31, 2006, Metretek
Technologies, Inc. (AMEX:MEK) reported revenues of $14.8 million and
net income of $638,000, or $0.05 per basic share, compared to revenues
of $7.8 million and a net loss, including a $300,000 loss from
discontinued operations, of $278,000, or $0.02 per basic share, in the
first quarter 2005.
   "The 90% increase in revenues reflects higher sales at all three
of our subsidiaries, led by PowerSecure, where revenues increased by
$5.8 million, or 153%, to $9.7 million," said W. Phillip Marcum,
president and chief executive officer of Metretek Technologies. "With
anticipated revenue recognition skewed toward the last three quarters
of the year, PowerSecure remains on track to achieve approximately $90
million in sales in 2006.
   "Southern Flow also did exceptionally well," said Marcum, "with
sales up by $1.1 million, or 34%, to $4.3 million, due to favorable
market conditions in the oil and gas sector, as well as increased
field work and equipment sales to repair damage to customers'
facilities incurred during the hurricanes of late 2005.
   "Earlier we anticipated consolidated net operating results of
breakeven to a small net loss in the first quarter, due primarily to a
substantial first-quarter investment in overhead necessary to support
PowerSecure's production schedule. The better-than-anticipated
bottom-line results reflect the strong recovery in Southern Flow's
business and higher-than-expected revenues at PowerSecure due to
revenue recognition on certain projects that were slightly ahead of
schedule.
   "Several transactions occurred during the first quarter, or
shortly thereafter, that significantly changed the overall financial
position of the Company," added Marcum. "On February 19, 2006, the
Company completed a warrant call that resulted in the retirement of
substantially all of the Company's outstanding warrants, and resulted
in net proceeds of approximately $1.8 million. In addition, the
Company invested $1.2 million by purchasing additional equity
interests in its unconsolidated affiliate (consisting of disposal well
operations in the Denver-Julesburg Basin), thereby raising its equity
interests from 27% to 36%. Finally, on April 7, the Company completed
a private placement of common stock that raised gross proceeds of
$28.2 million and realized net proceeds of approximately $26 million,
approximately $5.6 million of which was used to retire substantially
all of the Company's structured debt. With these transactions,
Metretek has a substantial cash position and the strongest balance
sheet in its history and is, we believe, well positioned to achieve
its financial goals in 2006."

   Updated Guidance for 2006:

   In a March 15, 2006 press release, the Company anticipated that
its net income for fiscal 2006 would be in the range of $10 million to
$13 million, or approximately $0.75 to $1.00 per basic share on the
number of shares then outstanding, on total revenues of approximately
$110 million. In light of improving operations at Southern Flow and
the benefits (avoiding interest charges that were previously
anticipated and earning interest on the current cash balance) of the
stronger balance sheet, the Company now expects that net income for
2006 will be in the range of $11 million to $15 million on total
revenues in excess of $110 million; however, because the weighted
average number of shares outstanding will increase in 2006 due to the
April 2006 equity offering, the earnings-per-basic-share guidance for
2006 remains unchanged at $0.75 to $1.00.

   Adjusted EBITDA:

   Adjusted EBITDA for the three months ended March 31, 2006 was
$1,059,000, as compared to $378,000 for the three months ended March
31, 2005, a $681,000 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 9 a.m. MDT (11 a.m. EDT) today, May 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. The 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 "2006 first-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 noon MDT on May 15; you
may access the playback by calling 800-642-1687 (or for international
callers 706-645-9291) and providing Conference ID number 8932915.

   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
operations and prospects for the Company and its subsidiaries; the
outlook for consolidated revenues and earnings and of PowerSecure's
revenues in 2006; 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 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; the risk of customers delaying, deferring or
canceling purchase orders or making smaller purchases than expected;
the ability of the Company to obtain adequate supplies of key
components and materials for its products and technologies on a timely
and cost-effective basis; the 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 ability of the Company 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 Annual Report on Form 10-K for the
fiscal year ended December 31, 2005, as well as in subsequent filings
with the Securities and Exchange Commission, including reports on
Forms 10-Q and 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.
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                      METRETEK TECHNOLOGIES, INC.
      CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

                                            First Quarter Ended
                                                 March 31,
                                            2006            2005

Total revenues                        $    14,832,329  $    7,810,637
Total costs and expenses                   14,764,179       8,261,572
Operating income (loss)                        68,150        (450,935)
Equity income                                 730,468         557,255
Minority interest                             (72,464)        (71,124)
Income taxes                                  (88,515)        (13,285)
Income from continuing operations             637,639          21,911
Loss from disposal of discontinued
 operations                                         -        (300,000)
Net income (loss)                     $       637,639  $     (278,089)

BASIC EARNINGS (LOSS) PER COMMON
 SHARE:
  Income from continuing operations   $          0.05  $         0.00
  Loss from discontinued operations              0.00           (0.02)
  Income (loss) per common share      $          0.05  $        (0.02)

DILUTED EARNINGS (LOSS) PER COMMON
 SHARE:
  Income from continuing operations   $          0.04  $         0.00
  Loss from discontinued operations              0.00           (0.02)
  Income (loss) per common share      $          0.04  $        (0.02)

WEIGHTED AVERAGE COMMON SHARES
 OUTSTANDING,
  BASIC                                    13,183,784      12,194,720
  DILUTED                                  15,151,903      12,733,632



           CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

                                          March 31,     December 31,
                                            2006            2005

Total current assets                  $    25,309,091  $   18,234,054
Property, plant and equipment, net          3,483,951       3,213,294
Total other assets                         13,830,883      11,871,578

Total assets                          $    42,623,925  $   33,318,926

Total current liabilities             $    19,121,866  $   13,322,898
Long-term notes payable and capital
 lease obligations                          3,962,677       3,596,733
Minority interest in subsidiary               242,219         169,755
Total stockholders' equity                 19,297,163      16,229,540

Total liabilities and stockholders'
 equity                               $    42,623,925  $   33,318,926



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.

                                            First Quarter Ended
                                                 March 31,
                                            2006            2005

Income from continuing operations     $       637,639  $       21,911
Add back:
    Interest and finance charges               88,375         147,198
    Income taxes                               88,515          13,285
    Depreciation and amortization             172,406         124,441
    Minority interest                          72,464          71,124
Adjusted EBITDA                       $     1,059,399  $      377,959
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