For the fiscal year ended June 30, 2006, net income increased to $34.4 million, or $1.07 per diluted share, from a net loss of ($3.2 million), or ($0.11) per diluted share for the prior fiscal year.  The increase in net income in the current fiscal year is primarily the result of increased powerline and storm revenues and the elimination of certain non-recurring expenses included in the prior year, partially offset by: (1) a charge of $3.0 million for non-cash compensation primarily related to the adoption of FAS 123R for fiscal 2006, and (2) increased professional fees of approximately $3.6 million related to legal and accounting services and the Company’s Sarbanes-Oxley compliance efforts.  The prior year included non-recurring expenses of $43.1 million on an after-tax basis including: (1) $19.2 million related to the Red Simpson acquisition, (2) $14.0 million related to the redemption of preferred stock, (3) $4.0 million related to the write-off of deferred loan fees in connection with the July 2004 debt refinancing, (4) $3.3 million related to the termination of the Company’s management agreement with Lindsay Goldberg Bessemer, and (5) $2.6 million related to the repurchase of options in its December 2004 recapitalization transaction. 

          Debt Repayment

          The Company repaid $159.0 million of its term debt during 2006, including $12.0 million during the fourth quarter, resulting in $249.0 million in term debt outstanding as of June 30, 2006.  There was also $4.5 million outstanding balance on the revolving portion of the Company’s credit facility as of June 30, 2006. 

          Outlook

          The Company remains optimistic about its long-term prospects.  The Company intends to capitalize on the favorable industry trends of increased customer outsourcing and the significant upgrade requirements for the country’s distribution and transmission infrastructure.  Additionally, the Company intends to gain market share through its operational excellence and storm restoration efforts.  The timing and significance of storm restoration revenues are not predictable.  Based on our workforce capabilities and geographical presence, we estimate normal storm restoration revenues for fiscal year 2007 to range from $40 to $50 million. We expect powerline revenues in the range of $590 to $600 million in fiscal year 2007 and for powerline revenues to increase at or near double-digit levels over the long term.  However, significant storm restoration revenues may cause year-to-year fluctuations in powerline revenue growth. 

          Conference Call

          Pike Electric’s conference call to discuss its fourth quarter and year ended June 30, 2006 results is scheduled for 10:30 a.m. EDT today, September 7, 2006. This call will be available live and by replay over the Internet at http://www.pike.com in the Investor Relations section. 

          About Pike Electric

          Pike Electric is one of the largest providers of outsourced electric distribution and transmission services in the United States. Its core activities consist of the maintenance, upgrade and extension of electric distribution and sub-500 kilovolt transmission powerlines for more than 150 electric utilities, cooperatives and municipalities. Pike Electric services a contiguous 19-state region that stretches from Pennsylvania in the north to Florida in the southeast and Texas in the southwest and is a recognized leader in storm restoration services. The Company’s common stock is traded on the New York Stock Exchange under the symbol PEC.  For further information regarding Pike Electric, visit the company’s website at www.pike.com.