Charys' Cotton and C&B Complete Management Integration Plan
Division Prepared for Forecasted Busy Hurricane Season
ATLANTA--May 8, 2007--Charys Holding Company, Inc. ("Charys"), a provider of wireless communications, data infrastructure and restoration and reconstruction services, announced today the completion of the integration plan for management of its two wholly-owned subsidiaries, Crochet and Borel Services, Inc. ("C&B") and Cotton Companies ("Cotton"). With the integration of management complete, Charys' restoration and reconstruction services will be provided nationwide under the "Cotton" brand.
Cotton is focused on delivering day-to-day restoration and reconstruction services, disaster preparedness, and related services to Federal (GSA), state and local governments. Over the past number of months, the Cotton division has increased its covered square footage in the Preferred Client Program from approximately 400,000 square feet to approximately 1.3 billion square feet. This growth is the direct result of the importance of disaster preparedness and the benefits of having a pre-loss agreement in place before a loss event happens. Cotton's Preferred Client Program gives customers a sense of security, since the interview and assessment process and terms of deployment and pricing have been agreed upon before a loss occurs. With the assimilation of clientele and resources coupled with the historical success of the two entities, the new Cotton has positioned itself as one of the largest organizations of its kind in the world. New construction jobs expected to generate revenue of over $1 million have begun in Texas and Colorado and new restoration contracts expected to generate revenue of over $1 million in Texas, Michigan, Massachusetts and Virginia have been signed.
The GSA contract (#GS-10F-0061T), valid through November 2011, under the Environmental Services Restoration Schedule (899-8), streamlines the procurement process for federal agencies as well as other organizations in need of restoration services. Cotton recently engaged Michael Brown, former Under Secretary of US Homeland Security, to assist in proactively introducing and educating its government clientele on the importance of its services in the preparedness planning process that has proven valued and effective for Cotton's commercial clients. Pete Bell, Cotton CEO, commented, "Implementing pre-event plans and procedures for clients in our government services group is a key growth focus for the coming year.
"Not only do we provide services for non-catastrophic events, such as fire or water damage, but we can also offer our customers peace of mind in the event of a major disaster. For instance, as quoted throughout the media recently, Dr. William Gray, Professor Emeritus of Atmospheric Science at Colorado State University, and his team predict that the 2007 Atlantic hurricane season will be much more active than the previous year. There may be 17 named storms and 9 hurricanes, of which 5 are expected to be intense (Category 3-4-5). While we don't predict the weather, our integration efforts provide us greater scale and additional resources which we believe will allow us to provide a superior level of service to our clients; we can be anywhere in the US within 4 hours. This responsiveness ensures minimal amount of business interruption for our clients."
Commenting on Charys' business, Billy V. Ray, Chairman and CEO of Charys, stated, "Our leadership team within the Restoration and Reconstruction group has done an impressive job integrating great companies with solid reputations under the Cotton brand. With impressive quality and ahead of schedule, this team has positioned Cotton as a leader in its market. Our core business of supporting our nationwide clients in their time of crisis through restoring and reconstructing their businesses in order to 'keep them in business' continues strong. And in case of a significant environmental catastrophe, our customer and supplier agreements, project plans, and personnel are prepared and ready to deploy wherever we are needed. I am proud of the hard work that has gone into the integration of Cotton. The lessons we have learned are being used as we complete the integration plan for the Wireless Communications and Data Networks group within Charys. The leadership team is following the very successful integration plan we used with C&B/Cotton, and we expect to see immediate growth in both top line and gross margins in the telecommunications sectors. In addition, the disaster remediation division is continuing to develop relationships with insurance carriers and brokers to expand the first responder program to jointly owned ventures in order to increase the day-to-day revenue from restoration and reconstruction and lessen the dependence on catastrophic events."
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon Charys' current expectations and speak only as of the date hereof. Actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including uncertainties as to the nature of the industry, including changing customer demand, the impact of competitive products and pricing, dependence on existing management and general economic conditions. Charys' Annual Report on Form 10-KSB, recent and forthcoming Quarterly Reports on Form 10-QSB, recent Current Reports on Form 8-K and other SEC filings discuss some of the important risk factors that may affect Charys' business, results of operations and financial condition. Management undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
About Charys Holding Company, Inc.
Headquartered in Atlanta, Georgia, Charys is a publicly traded company providing infrastructure services in two primary markets. In the Remediation and Reconstruction markets, Charys services include emergency planning and coordination, response to catastrophic losses, reconstruction and restoration and environmental remediation. In Wireless Communications and Data Infrastructure markets Charys provides an array of services including engineering, program management, construction, installation and maintenance, tower services, radio and advanced technology implementation and integration services to large service providers and other business enterprises.

