Demand for energy efficiency and building performance-enhancing products and services strengthened significantly in the second half of the fiscal year despite the recession’s impacts on all markets

ATLANTA – JULY 28, 2009 – SERVIDYNE, INC. (NASDAQ – SERV),  a building performance efficiency and real estate company, today reported that consolidated revenues in the fourth quarter ended April 30, 2009, increased by approximately 49% to $4.6 million, compared to consolidated revenues of $3.1 million for the same period last year.  At the Company’s core Building Performance Efficiency Segment, fourth quarter revenues were $3.7 million, an increase of approximately 63% over last year, and the segment’s year-end backlog grew by approximately 38% over last year to $9.9 million.

The Company reported a consolidated net loss from continuing operations in the fourth quarter of $2,342,965, or $.63 per share, compared to a net consolidated loss from continuing operations of $456,153, or $0.13 per share, for the same period last year.  The current period quarterly loss included a one-time, non-cash expense before taxes of approximately $2.2 million, caused by the lease default of an anchor tenant at one of the Company’s owned income-producing properties during the quarter. For the full year, the Company reported a consolidated net loss from continuing operations of $4,587,450, or $1.23 per share, including the fourth quarter real estate expense, compared to a consolidated net loss from continuing operations for the same period last year of $1,160,542, or $0.31 per share.

Commenting on the results, Alan R. Abrams, Chairman, President and CEO, stated: “After several consecutive years of profitability and growth, fiscal 2009 was disappointing. Virtually all of the Company’s markets were adversely impacted by the global recession, although demand for our building performance efficiency products and services strengthened significantly in the second half of the fiscal year.

“Our real estate business was hit hard by the economic downturn, after consistently producing positive cash flows and earnings for more than a decade. In light of the unprecedented crisis in the real estate sector of the economy, we feel very fortunate that the Company had already completed the sale of the substantial majority of its properties and paid off all of the associated debt prior to the collapse of worldwide markets. Our now small portfolio is not immune to the contagion ravaging the industry, and we are actively managing and diligently monitoring our few remaining real estate assets.

“Over the last decade, we have re-invented our business around the fundamental idea of reducing the future impacts of higher utility costs and caps on greenhouse emissions through the sale of energy efficient products, programs and services for existing buildings. Despite the recent economic downturn, we continue to see increasing evidence that Servidyne’s building performance efficiency offerings are useful to our customers in reducing their energy expenses and improving their sustainability, as suggested by the strong revenue and order growth and other new business activity during the second half of the fiscal year. As the economy recovers, we anticipate that demand for our existing products and services will grow significantly, and we continue to believe that the potential for Servidyne is extremely positive.”
 

About Us
Established in 1925, Servidyne, Inc. is headquartered in Atlanta, Georgia, and operates globally through its wholly–owned subsidiaries. The Company provides comprehensive energy efficiency solutions, sustainability programs, and other products and services that significantly enhance the operating and financial performance of existing buildings. Servidyne enables customers to cut energy consumption and realize immediate cost savings across their portfolios, while reducing greenhouse gas emissions and improving the comfort and satisfaction of their buildings’ occupants. The Company serves a broad range of markets in the United States and internationally, including corporate, commercial office, hospitality, gaming, retail, industrial, distribution, healthcare, government, multi-family and education. Servidyne also engages in commercial real estate investment and development. The Company currently owns or controls shopping centers in the Southeast and Midwest and office properties in metropolitan Atlanta. For more information about Servidyne, please visit www.servidyne.com or call 770-953-0304.

Certain statements contained or incorporated by reference in this press release, including without limitation, statements containing the words “believe,” “anticipate,” “estimate,” “expect,” “plan,” “project,” “forecast,” “should,” and words of similar import, are forward-looking statements within the meaning of the federal securities laws. Forward-looking statements in this release include statements regarding the following matters: the Company’s expectations of delivering demand response results as early as this summer; the Company’s anticipation of entering into new contracts with customers served by utilities in California; and the Company’s expectation that its successful demand response efforts last summer will lead to additional new business later this year. Forward-looking statements involve known and unknown risks, uncertainties and other matters which may cause the actual results, performance, or achievements of Servidyne, Inc. to be materially different from any future results, performance, or uncertainties expressed or implied by such forward-looking statements. Factors affecting forward-looking statements in this release include, without limitation, the factors identified under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended April 30, 2009, as updated from time to time in the Company’s Quarterly Reports on Form 10-Q. Servidyne, Inc. does not undertake to update these forward-looking statements.