Metretek Technologies Reports Record Quarterly Revenues and Net Income

For the three months ended June 30, 2006, Metretek
Technologies, Inc. (Amex:MEK) reported record quarterly revenues of
$36.2 million and record net income of $4.2 million, or $0.27 per
basic share ($0.25 per diluted share). In the comparable period a year
ago, the Company reported revenues of $14.0 million and net income of
$934,000, or $0.08 per basic share ($0.07 per diluted share).
   For the six months ended June 30, 2006, the Company reported
record revenues of $51.1 million and record net income of $4.9
million, or $0.34 per basic share ($0.30 per diluted share), compared
to revenues of $21.8 million and net income of $656,000, or $0.05 per
basic and diluted share, in the first six months of 2005.
   According to W. Phillip Marcum, president and chief executive
officer, the 158% increase in quarterly revenues was due principally
to PowerSecure, whose second-quarter revenues were a record $31.1
million, or 86% of total revenues. "PowerSecure's success continues to
be driven by sales of distributed generation turnkey systems," said
Marcum.
   "Southern Flow is also well on its way toward a record year.
Revenues are up by $623,000, or 19%, compared to the second quarter of
2005, and are up by approximately 26% for the first half.
Additionally, Southern Flow's profitability is up by 45% for the first
half of 2006 compared to the comparable period of 2005. Southern Flow
is benefiting from field work and equipment sales related to repairing
facilities damaged during last year's hurricanes, as well as favorable
market conditions in the oil and gas sector."
   In the first half of 2006, PowerSecure's total sales were $40.7
million, approximately $21 million of which is attributable to a
previously announced order from Publix Super Markets. The balance of
the $115 million in business awarded by Publix is expected to be
completed in the second half of 2006 and the first half of 2007. Sales
to all other PowerSecure customers increased from $13.5 million during
the first half of 2005 to $19.4 million in the first half of 2006, an
increase of 44%. According to Sidney Hinton, president and chief
executive officer of PowerSecure, "While we are very pleased with the
Publix business and highly value this customer relationship, we are
also delighted to report that our core business and customer base
continue to grow in all areas."
   "In short," said Marcum, "we face the future with considerable
optimism, for in addition to the ongoing strength of our core
operations, we have the capital to fund future growth. Following a
private placement of common stock in April that generated
approximately $26 million in net cash proceeds, Metretek now has what
is unquestionably the strongest balance sheet in its history: at June
30, we had $21 million in cash and cash equivalents, $33 million in
working capital, no long term debt, zero balance on our credit lines,
and stockholders' equity of $50 million."

   Updated Guidance for 2006

   In May 2006, the Company issued updated guidance that estimated
its 2006 net income would fall in the range of $11 million to $15
million on sales exceeding $110 million, resulting in earnings per
basic share in the range of $0.75 to $1.00. Based upon projects
completed in the second quarter, and experience gained from the
development of specific sites for PowerSecure's largest customer, the
Company is updating its 2006 guidance. The Company now expects that
net income for 2006 will be in the range of $11 million to $12 million
on sales of approximately $115 million, or $0.76 to $0.80 per basic
share ($0.68 to $0.72 per weighted average diluted share outstanding).
   According to Marcum, "PowerSecure's second-quarter performance
surpassed all of our expectations, as evidenced by second-quarter
revenues that exceeded PowerSecure's entire 2005 sales. Such progress
in the growth and maturity of PowerSecure supports our primary
performance target of 30% average annual growth in earnings per
share."

   Adjusted EBITDA:

   Adjusted EBITDA for the six months ended June 30, 2006 was
$5,560,000, as compared to $1,638,000 for the six months ended June
30, 2005, a $3,922,000 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, August 11, 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 second-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.
   A telephone playback will be available beginning at noon MDT on
August 11 through 10 p.m. MDT on Monday, August 14. The playback can
be accessed by calling 800-642-1687 (or 706-645-9291 for international
callers) and providing Conference ID 4074123.

   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 release 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 but not limited to statements concerning the business
operations and prospects for the Company and its subsidiaries; the
outlook for the Company's consolidated revenues and earnings and of
PowerSecure's revenues in 2006; the Company's primary performance
target of 30% average annual growth in earnings per share; 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 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's subsidiaries; the size, timing and terms
of sales and orders, including large customer orders, and the risk of
customers delaying, deferring or canceling purchase orders or making
smaller purchases than expected; the ability of the Company's
subsidiaries to obtain adequate supplies of key components and
materials for their products and technologies on a timely and
cost-effective basis; the ability of PowerSecure to successfully
expand its core distributed generation products and services, to
successfully develop and achieve market acceptance of its new
energy-related businesses, to manage its growth and to address the
effects of any future changes in tariff structures and environmental
requirements on its business solutions; 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; the ability of the Company to
attract, retain and motivate key personnel; changes in the energy
industry in general and the natural gas and electricity markets in
particular, including price levels; the effects of competition; the
ability of the Company to secure and maintain key contracts and
relationships; general economic, market and business conditions; 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; 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)


                     Second Quarter Ended        Six Months Ended
                           June 30,                  June 30,
                       2006         2005         2006         2005
                    -----------  -----------  -----------  -----------
Total revenues     $36,243,411  $14,035,761  $51,075,740  $21,846,398
Total costs and
 expenses           32,514,124   13,420,839   47,278,303   21,682,411
                    -----------  -----------  -----------  -----------
Operating income     3,729,287      614,922    3,797,437      163,987
Equity income          520,974      364,786    1,251,442      922,041
Minority interest            -      (45,441)     (72,464)    (116,565)
Income taxes           (22,999)           -     (111,514)     (13,285)
                    -----------  -----------  -----------  -----------
Income from
 continuing
 operations          4,227,262      934,267    4,864,901      956,178
Loss from disposal
 of discontinued
 operations                  -            -            -     (300,000)
                    -----------  -----------  -----------  -----------
Net income         $ 4,227,262  $   934,267  $ 4,864,901  $   656,178
                    ===========  ===========  ===========  ===========

BASIC EARNINGS
 (LOSS) PER COMMON
 SHARE:
  Income from
   continuing
   operations      $      0.27  $      0.08  $      0.34  $      0.08
  Loss from
   discontinued
   operations             0.00         0.00         0.00        (0.03)
                    -----------  -----------  -----------  -----------
  Income per
   common share    $      0.27  $      0.08  $      0.34  $      0.05
                    ===========  ===========  ===========  ===========
DILUTED EARNINGS
 (LOSS) PER COMMON
 SHARE:
  Income from
   continuing
   operations      $      0.25  $      0.07  $      0.30  $      0.07
  Loss from
   discontinued
   operations             0.00         0.00         0.00        (0.02)
                    -----------  -----------  -----------  -----------
  Income per
   common share    $      0.25  $      0.07  $      0.30  $      0.05
                    ===========  ===========  ===========  ===========
WEIGHTED AVERAGE
 COMMON SHARES
 OUTSTANDING,
  BASIC             15,513,274   12,258,782   14,354,964   12,226,928
                    ===========  ===========  ===========  ===========
  DILUTED           17,071,389   12,781,075   16,065,350   12,757,620
                    ===========  ===========  ===========  ===========



           CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)


                                             June 30,     December 31,
                                               2006           2005
                                            -----------    -----------
Total current assets                       $61,498,484    $18,234,054
Property, plant and equipment, net           3,775,131      3,213,294
Total other assets                          13,640,642     11,871,578
                                            -----------    -----------

Total assets                               $78,914,257    $33,318,926
                                            ===========    ===========

Total current liabilities                  $28,533,580    $13,322,898
Long-term notes payable and capital
 lease obligations                               1,100      3,596,733
Minority interest in subsidiaries                    -        169,755
Total stockholders' equity                  50,379,577     16,229,540
                                            -----------    -----------
Total liabilities and stockholders'
 equity                                    $78,914,257    $33,318,926
                                            ===========    ===========



                      METRETEK TECHNOLOGIES, INC.
            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.


                        Second Quarter Ended       Six Months Ended
                              June 30,                 June 30,
                          2006        2005         2006        2005
                       ----------  ----------   ----------  ----------

Income from
 continuing
 operations           $4,227,262  $  934,267   $4,864,901  $  956,178
Add back:
   Interest and
    finance charges       46,336     146,642      134,711     293,840
   Income taxes           22,999           -      111,514      13,285
   Depreciation and
    amortization         203,898     133,564      376,304     258,005
   Minority interest           -      45,441       72,464     116,565
                       ----------  ----------   ----------  ----------
Adjusted EBITDA       $4,500,495  $1,259,914   $5,559,894  $1,637,873
                       ==========  ==========   ==========  ==========
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