Energy efficiency project revenues continued to grow substantially

ATLANTA – March 17, 2010 – SERVIDYNE, INC. (NASDAQ – SERV), an energy efficiency, demand response and real estate company, today reported net earnings for the third quarter ended January 31, 2010, of $119,982, or $.03 per share, compared to a net loss of ($491,362), or ($.13) per share, for the same period last year. Consolidated revenues for the third quarter were $4.84 million, compared to $4.06 million a year ago, an increase of approximately 19%. For the nine months ended January 31, 2010, the Company reported a net loss of ($1,293,626), or ($.36) per share, compared to last year’s net loss of ($2,244,485), or ($.60) per share, a year-over-year improvement of approximately 42%. Consolidated revenues for the nine months were $14.0 million, an increase of approximately 21% over the comparable prior year results.

At the Company’s core Building Performance Efficiency (“BPE”) Segment, third quarter revenues grew by approximately 23% over last year to $4.1 million, including revenues from energy efficiency projects that grew by approximately 84% to $2.5 million. BPE revenues for the nine months ended January 31, 2010, were $11.9 million, an annual increase of approximately 26%, including energy efficiency project revenues of $6.6 million that were approximately 86% higher than last year.

Commenting on the results, Alan R. Abrams, Chairman, President and CEO, stated, “I continue to be encouraged by the level of customer order activity at our core BPE Segment. New order bookings increased in each successive month from September 2009 through January 2010, as the BPE Segment received approximately $5 million in new orders during the third quarter from customers in both the private sector and the government sector. There is an overall increase in capital spending by a number of our customers, and we are beginning to see positive impacts from the long-anticipated growth in federal expenditures for energy efficiency upgrades of government facilities. These factors contributed to the quarterly increase in BPE customer order backlog, which by the end of the third fiscal quarter had increased by more than 22% from the end of the second quarter. We expect that these improving trends will continue in the fourth quarter and into next fiscal year. As a result, we expect that the BPE Segment will generate positive EBITDA and net earnings within the next two (2) fiscal quarters, as revenues continue to grow.”

The consolidated net loss from continuing operations in the third quarter was $538,904, compared to last year’s third quarter net loss of $472,800. However, last year’s third quarter net loss included one-time pre-tax other income related to the settlement of an insurance claim of approximately $285,000.

In January 2010, the Company’s Real Estate Segment transferred its interest in a small office building in Newnan, Georgia, to the property’s mortgage note holder, which satisfied in full the Company’s repayment liability under the mortgage, and generated a pre-tax gain of approximately $1.2 million in the third quarter ended January 31, 2010. As a result, the current year third quarter results include consolidated net earnings from discontinued operations of $658,886, or $.18 per share.

The Company also reported that it is currently marketing for sale its owned shopping center in Jacksonville, Florida, and has engaged a third party real estate broker to assist it in those efforts. Based on the range of prices contained in the initial non-binding offers that the Company has received from prospective purchasers, the Company currently expects to sell the shopping center in the near future at an acceptable price, and generate a gain on sale and substantial liquidity as a result. There can be no assurance, however, that the Company will be able to consummate the sale as currently contemplated.

In addition, the Company reported that the Board of Directors declared a cash dividend in the amount of $.01 per share, the Company’s 123rd consecutive quarterly dividend, payable on April 21, 2010, to shareholders of record on March 31, 2010. The Company also announced that the Board of Directors has extended the authorization to repurchase up to 100,000 shares of the Company’s common stock during the twelve-month period beginning March 16, 2010, and ending March 15, 2011. Any such purchases, if made, could be in the open market at prevailing prices or in privately negotiated transactions.

About Servidyne
Established in 1925, Servidyne, Inc. is headquartered in Atlanta, Georgia, and operates globally through its wholly–owned subsidiaries. The Company provides comprehensive energy efficiency and demand response solutions, sustainability programs, and other products and services that significantly enhance the operating and financial performance of existing buildings. Servidyne enables its 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 owners and operators of corporate, commercial office, hospitality, gaming, retail, light industrial, distribution, healthcare, government, multi-family and education facilities, as well as energy services companies and public and private utilities. Servidyne also owns commercial income-producing properties in the Southeast. For more information about Servidyne, please visit www.servidyne.com or call 770-953-0304.

Certain statements contained in this news release are forward-looking statements within the meaning of federal securities laws. Without limitation, statements in this press release that are forward-looking include statements regarding the following matters: the Company’s expectations of a continuing improvement in BPE order activity for the fiscal fourth quarter and into the next fiscal year; the Company’s belief that a number of its customers are increasing capital spending; the Company’s expectation that it will continue to benefit from the growth in federal expenditures for energy efficiency upgrades of government facilities; the Company’s expectation that the BPE Segment will generate positive EBITDA and net earnings within the next two (2) fiscal quarters, as revenues continue to grow; and the Company’s expectation that it will sell its shopping center in Jacksonville, Florida, in the near future at an acceptable price, and as a result of such sale generate a gain on sale and substantial liquidity. 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 Company’s ability to secure adequate capital to fund the future anticipated revenue growth at the BPE Segment and the other factors identified under the caption “Risk Factors” in the Company’s periodic reports filed with the Securities and Exchange Commission; any of which may cause the actual results, performance or achievement of Servidyne, Inc. to be materially different from any past or future results, performance, or uncertainties expressed or implied by such forward-looking statements. Servidyne, Inc. does not undertake to update these forward-looking statements.