Avatech Solutions Releases Avatech AutoOffset for Civil Engineers and Surveyors

BALTIMORE- - Avatech Solutions, Inc, an American professional services company for design and engineering technologies, announces the retail release of Avatech AutoOffset™. Designed to enhance the AutoCAD® Civil 3D® experience for users worldwide, this software application is the most recent commercially available product developed and distributed by Avatech Solutions.

“The development of Avatech AutoOffset demonstrates our continued ability to create products that add real value to our customers’ bottom lines, as well as that of the broader commercial marketplace,” says George Davis, CEO, Avatech Solutions. “In fact, our software development team has released ten innovative products in the last eight years in direct response to customers’ demands.”

“In just minutes, AutoOffset helps us complete work that previously took hours,” says Joe Kidd, CAD Coordinator with Orchard Hiltz McCliment Engineering. “With a single project containing hundreds and even thousands of points to annotate, AutoOffset is an indispensable timesaver for our firm. We originally used it exclusively for road design, but because it’s so flexible and easy to customize, we’re finding new and unexpected beneficial applications.”

“With many new municipal, state and federal projects coming online, Avatech recognized a market opportunity to provide civil engineering firms with a tool to enhance team productivity,” says Davis. “As a recognized leader in the customization of Autodesk software, we were able to design and develop the perfect complementary product to help our customers streamline their workload so they could take better advantage of new opportunities.”

Avatech AutoOffset enhances the productivity of civil engineers and surveyors working with AutoCAD Civil 3D by eliminating manual tasks and saving valuable time. Developed for those who create linear designs like roads, railways, and sewer lines, AutoOffset takes survey data and automates location calculations and the labelling of land features such as trees, buildings, and utility poles.

Availability and Pricing

Avatech AutoOffset retails for $395, but is available free of charge to companies with an active Autodesk Subscription through Avatech. The software can be downloaded directly from Avatech.

Avatech Solutions Completes Redemption of Preferred Stock

BALTIMORE – Avatech Solutions, Inc, the nationwide technology experts for design, engineering, and facilities management, announced that on March 31, 2010 it completed the redemption of its Series F Convertible Preferred Stock offering ("Series F").

In June 2006, Avatech issued $4 million of the preferred stock as an integral part of the funding of an acquisition. The Series F issuance provided for a 10% dividend payment, 800,000 common stock warrants and could have been converted into 2,055,000 shares of common stock. Included in the final redemption payment was also the final dividend payment due under the issuance and with the redemption completed, the conversion rights no longer exist. The common stock warrants have an exercise price of $2.30 per share and will expire on June 12, 2010.

"This continues the strengthening of the Company’s balance sheet and it is particularly noteworthy that the redemption took place over the last two years during the economic turmoil that racked much of our country," commented President and Chief Financial Officer Lawrence Rychlak. "By closely managing our operations and financial position, we successfully met all of the redemption and dividend provisions of this preferred stock offering without incurring any other financial obligation.

"By fully redeeming this offering, we have reduced our future dividend payments, thus increasing future cash flows and we have simplified our equity structure. Combined with our profitable operating results, our strong balance sheet and cash flows positions us well for our future strategic endeavors," concluded Mr. Rychlak.

Avatech Solutions Releases Commercial Version of 'Avatech Utilities for Revit'

BALTIMORE, MD – Avatech Solutions, Inc, America’s leading professional services company for design and engineering technologies today announced that the Autodesk Revit software utilities application suite has now been upgraded and released as a commercial product called Avatech Utilities for Revit. This is the first time that this enhanced application suite has been offered for sale and it will continue to be free for Avatech’s Autodesk Subscription clients.

"Our goal was to develop a product of high value, while at the same time creating a loyal user base," says George Davis, CEO, Avatech Solutions. "Entering the market initially with a free product download allowed us to quickly generate traction in the design community throughout the U.S. and beyond."

Over 5,000 companies in more than 125 countries have downloaded the utilities suite since its launch in 2007. The downloadable tools were developed by Avatech’s Software Development Group in conjunction with resident Revit experts and are designed to improve performance for Revit users on a daily basis.

"Our talented software development team has engineered innovative products that have been successfully utilized by Autodesk customers worldwide," adds Larry Rychlak, President and CFO, Avatech Solutions. "Avatech Utilities for Revit demonstrates yet again the special skills and talents our people bring to the marketplace and the added value we provide to our Autodesk Subscription clients who have free access to the utilities through Avatech’s Client Portal."

Avatech Utilities for Revit includes eight indispensable programs designed to increase productivity and efficiency for any Revit user. Each one of these productivity-enhancing tools saves time by automating repetitive tasks and eliminating manual re-work.

Availability and Pricing
The full version of Avatech Utilities for Revit is available for $395 directly from Avatech and, as previously mentioned, is free to those having Autodesk Subscription through Avatech.

Avatech Solutions Announces Winners of 'Render Us Speechless' Contest

Over $5,000 in Prizes Awarded to Winners in Manufacturing, Civil, Architecture and Wild Card Categories.

BALTIMORE, MD – Avatech Solutions, today announced the winners of the Render Us Speechless contest.

Avatech selected 45 finalists from hundreds of entries submitted by designers who use Autodesk 2D and 3D design, engineering and entertainment software. During Autodesk University, these 45 finalists were showcased in a video and industry peers cast their votes for their favorite rendering. The four submissions in each category that received the most votes at Autodesk University were then given to a panel of Avatech experts who made the final winning selections. First place winners in each category are:

* Architecture: Ryan Tow, Yung Design Group
* Civil: Randy Burton, Parsons Brinckerhoff
* Manufacturing: Thomas Balaguer, Academy of Art University
* Wild Card: Jogi Nomura, Raytrace Studio

Over $5,000 dollars in prizes was awarded to designers with the most photorealistic renderings. A first place, second place and third place prize were awarded in each of the three categories: Architecture/Building, Civil/Mapping/GIS, Manufacturing/Mechanical, and Design and a Wild Card award was given to one designer.

"Our expectations for quality submissions are high, but each year we are delighted to review stunning submissions that consistently raise the bar," says Larry Rychlak, President & CFO, Avatech Solutions. "The number and quality of entries reflects the advanced state of visualization software and the increased use of design visualization by firms wanting to win more business, faster."

Avatech Solutions Appoints Lawrence Rychlak as New President

BALTIMORE - Avatech Solutions, Inc today announced that Lawrence Rychlak has been promoted to President of Avatech Solutions effective immediately. Mr. Rychlak will retain the position of Chief Financial Officer and George Davis will remain as Chief Executive Officer of the Company.

Mr. Rychlak, 53, has been with Avatech Solutions since May 2005, and most recently held the titles Executive Vice President and Chief Financial Officer. Prior to joining Avatech Solutions, Mr. Rychlak was with Environmental Elements Corp., where he held the positions of interim President and Senior Vice President, as well as Chief Financial Officer. He is a certified public accountant and holds a B.A. and an M.B.A. from Loyola University in Baltimore.

“Since I became President and CEO almost two and a half years ago, Larry has been instrumental in streamlining the Company’s operations, improving its financial performance and solidifying the balance sheet,” stated Mr. Davis. “The stability that now pervades Avatech’s operations has given us the opportunity to have Larry take on the additional responsibility of leading the day-to-day operations as I concentrate more on new and existing strategic initiatives, which are targeted towards driving future growth and diversification.”

Mr. Rychlak stated, “I am excited about the opportunities ahead of Avatech Solutions, and will embrace the added responsibilities associated with leading the Company towards meeting its operating and financial objectives. It has been a great experience working with George and I am very thankful for his past support and the opportunity that he and the Board of Directors have afforded me. I look forward to continuing to work with George and the rest of the Avatech team while we work to take advantage of the improving market conditions as the economy begins its recovery.”

Avatech Solutions Announces New Exclusive Client Service

Baltimore, Md. –Avatech Solutions, Inc. (OTCBB: AVSO), America’s leading professional services company for design and engineering technologies, today announced the introduction of its latest service to its client base—the Avatech Client Portal.

Designed as a destination for Avatech’s client base, the Client Portal will provide 24/7 instant access to information and services of special interest to Avatech clients.

Initially, the Client Portal is only available to those who have Autodesk Subscriptions through Avatech or to our technical support clients. Subscription clients have access to free Avatech productivity software downloads that retail for up to $395 each to non-Subscription customers. Avatech customers could receive thousands of dollars worth of free software that automates tedious manual tasks and dramatically reduces design time. Technical support clients will be able to quickly and easily submit support questions and technical problems, as well as view and search all past issues and resolutions.
Plans for expansion of the portal may include not only additional free software downloads, access to a support knowledge base, on-demand learning, product tips, links, special offers and promotions, RSS, communities, and more. Avatech will be actively soliciting user feedback to expand and populate the portal with information and services that its clients want.

“We are constantly pushing ourselves to provide the maximum value to our clients. It’s not enough for us to provide initial services to customers; we strive to partner with clients not only as their businesses grow, but during tough times as well. We’re in it for the long haul and we want our clients to know that,” says George Davis, president and CEO of Avatech. “The Client Portal is just the latest salvo in this continuing effort.”

Avatech Solutions Challenges Top Digital Designers to 'Render Us Speechless'

Contest offers $5,000 in prizes for topnotch photorealistic renderings and visualizations.

BALTIMORE, MD – Avatech today launches the 'Render Us Speechless' contest to recognize the best digital rendering and visualization designers who use Autodesk® design and engineering software.

This year Avatech is accepting submissions in four categories: Manufacturing/Mechanical, Civil/Mapping/GIS, Architecture/Building Design, and "Wild Card." Each category will be awarded a first place of $750, second place of $500, and third place of $250. One Wild Card (submissions that don’t fit into any of the other three categories) winning entry will receive $500.

This competition exposes the industries’ most inventive digital designs from architectural designers, civil and land development engineers, mechanical and manufacturing engineers, interior designers, students, and others across commercial and educational organizations.

"As the ability to create photorealistic visualizations evolves, our customers and their clients are discovering, validating, and conveying design concepts in ways that speed up acceptance to new ideas and quickly win approvals, ultimately selling projects faster," says George Davis, president and CEO, Avatech Solutions. "Avatech was the Autodesk award winner for top visualization software sales growth last year, so we take pride in providing a forum to support and showcase brilliant talent and highlight the important contribution these individuals make in advancing their organization and meeting their clients’ expectations."

Photorealism, degree of difficulty, aesthetics, and technical skill will be the primary focus of the judges. Select entries will be showcased on Avatech’s Web site and the premiere entries in each category will be exhibited at Autodesk University, where industry peers will cast their vote for their favorite rendering.

The deadline for submissions is Oct. 16, 2009. Entrants are welcome to enter as many categories as they want, but the same rendering cannot be entered in more than one category. There is no entry fee. Entries can be submitted via mail or online.

Avatech Solutions Supports New Autodesk Assistance Program

BALTIMORE – Avatech Solutions, Inc. (OTCBB: AVSO), America’s leading professional services company for design and engineering technologies, announces that it is supporting the Autodesk Assistance Program by offering out of work designers, engineers and architects with low-cost training to help them learn new skills and improve employability. There are potentially more than 100 courses each month in architecture, building systems, civil and mechanical engineering that are eligible for special pricing.

The Autodesk Assistance Program provides free student software term licenses as well as discounted pricing for classroom and online training, certification preparation courses and exams. Avatech Solutions is offering their award-winning training expertise for a nominal fee of $99 per class. This price covers only Avatech’s costs for the class and includes the training manuals.

“Our philosophy at Avatech is to ensure architects and engineers get the training they need on the software applications most critical to their productivity,” says George Davis, President and CEO, Avatech Solutions. “We’re offering our award-winning instructors to help people who are the industry’s backbone to sharpen their skills and become more competitive in this tough job market.

Students can sign up for Avatech’s Standard Classroom or Online Virtual Classroom Training courses where space is available. Autodesk-Certified instructors teach the Standard Classroom Training using Avatech’s computing lab facilities in 17 locations across the nation. A live instructor presents the Online Virtual Classroom Training sessions while students conference-in remotely.

Barton Malow Moves to 4D and 5D with Avatech Solutions

BALTIMORE, MARYLAND : Avatech Solutions, Inc. (OTCBB: AVSO.OB), the nationwide technology experts for design, engineering, and facilities management, announced today that Barton Malow, has engaged Avatech to perform complete implementation services for the Autodesk Revit family to assist the firm with the design and construction of a Michigan state highway transportation facility. Barton Malow Company provides construction management, design/build, program management, general contracting, technology and rigging services nationwide. The firm's annual revenues exceed $1 billion and large projects including the National Aquarium in Baltimore and the Detroit Airport north terminal renovation.

"We have been working with Autodesk Revit to build 3D models with an initial focus on determining constructability," said Barton Malow's Mark Falzarano, CAD Coordinator. "Now we want to integrate the construction side of our business with the design side, incorporating construction phasing using time-lapsed models to visualize a project as it would be constructed, known as 4D. We also want to identify construction costs early on in the design process, using the model, known as 5D. Because Avatech has so much experience and many successful implementations we will leverage their experts and apply that knowledge throughout the organization."

Avatech will implement Revit applications in the Design Group, creating custom content for the pilot project and providing core and custom training focused on 4D and 5D, to guide project members how best to collaborate on a project and to use phasing and costing functions to derive construction efficiencies.

"Building information modeling allows the virtual design of a project prior to breaking ground and permits our designers and engineers to eliminate problems prior to construction," said VP, Jim Dome, Barton Malow's AE Services. "We see huge potential for better coordination, improved times to completion and reduced costs on the construction side. Pulling the construction schedule into the model itself to look at manpower issues and analyze construction on an ongoing basis is the next phase in our move to fully realize the power of BIM across all disciplines and all dimensions."

"Avatech brings our experience working with BIM at scores of customer sites, to forward thinking GCs like Barton Malow," said Bruce White, Senior Vice President of Sales at Avatech. "Our professionals excel with clients who need not only technical help, but also best practices in design and construction collaboration across the entire building project lifecycle."

Avatech Solutions Reports Preliminary Net Income for Fiscal 2008

Company achieves record earnings per fully diluted share of $0.15 during fiscal 2008

BALTIMORE-- Avatech Solutions, Inc. (OTCBB: AVSO), the nationwide technology experts for design, engineering, and facilities management, today announced preliminary unaudited financial results for its fiscal fourth quarter and year ended June 30, 2008.

For the fourth quarter of fiscal 2008, Avatech expects to report total revenue of approximately $11.5 million, compared to $11.5 million in the fourth quarter of fiscal 2007. Preliminary net income increased to $741,000, or $0.03 per fully diluted share, compared to a net loss of $(873,000), or $(0.05) per fully diluted share, in the same period of the prior year. EBITDA as adjusted (as defined) increased to $807,000 in the fourth quarter of fiscal 2008, from a loss of $(607,000) in the prior year period.

For the full year ended June 30, 2008, Avatech expects to report revenues of approximately $49.6 million, compared to $50.5 million in the prior year. Preliminary net income is expected to increase to approximately $3,090,000, or $0.15 per fully diluted share, compared to a net loss of $(555,000), or $(0.04) per fully diluted share in fiscal 2007. EBITDA as adjusted increased to $4,678,000 in fiscal 2008, compared to $1,236,000 in fiscal 2007.

George Davis, President and Chief Executive Officer of Avatech Solutions, said, "Our strong preliminary net income and Adjusted EBITDA in fiscal 2008 indicate the successful execution of our business strategy and continued cash flow generation throughout the entire year. Over the last 12 months, we have focused intently on reducing costs and achieving consistent profitability, in the face of a weakening economic environment. As a direct result of these cost-saving initiatives, we have delivered record net income, increased our cash balance by 225% to approximately $5.5 million and increased shareholder equity by 38% to $13.2 million. Looking forward to 2009, we are concentrating on top line growth by expanding our go to market (sales) and implementation (engineering) teams with a continued focus on growing the services component of our business. Additionally, we will continue to expand our offerings through new initiatives, including expanding the marketing efforts for our new Manufacturing Consulting Division."

These expected operating results are preliminary and subject to management and the Company's auditors completing their quarterly closing review procedures.

The Company plans to release its financial results for the fiscal fourth quarter and year ended June 30, 2008 on September 29, 2008 and will host a conference call that day to discuss in detail the quarter's results.

Note Regarding Use of Non-GAAP Financial Measure

This news release contains the non-GAAP measure EBITDA as adjusted. EBITDA as adjusted represents earnings (or losses) before interest, income taxes, depreciation and amortization, and stock-based compensation expense.

EBITDA as adjusted is used by management, analysts, investors and other interested parties in evaluating our operating performance compared to that of other companies in our industry, as the calculation of EBITDA as adjusted eliminates the effect of financing, income taxes, stock-based compensation costs, the accounting effects of capital spending and certain other merger related expenses, which items may vary from different companies for reasons unrelated to overall operating performance.

Avatech believes this non-GAAP measure provides useful information to both management and investors by excluding certain expenses that may not be indicative of its core operating results. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The non-GAAP measure included in this press release has been reconciled to the GAAP results in the accompanying table.

About Avatech Solutions

Avatech Solutions, Inc. (OTCBB: AVSO) is America's leading professional services company for design and engineering technologies. Avatech advances the way organizations design, develop, and manage building, infrastructure, and manufacturing projects. Fortune 500 and Engineering News Record's Top 100 companies work with Avatech to gain a competitive advantage through technology consulting, implementation, training, and support services. One of the world's largest integrators of Autodesk software, Avatech designs systems that accelerate innovation while improving quality and profitability. For more information please visit www.avatech.com.