Avatech Solutions Reports Third Consecutive Quarter of

Avatech Solutions Reports Third Consecutive Quarter of Profitability and Net Income of $1.0 Million

Avatech Solutions, Inc.
Summary Consolidated Financial Data

	Three Months Ended		Nine Months Ended
	March 31,		March 31,
	2008	2007	2008	2007

Revenues-
Product sales	$6,341,000	$9,094,000	$20,960,000	$23,614,000
Service revenue	3,132,000	2,802,000	8,635,000	7,767,000
Commission revenue	3,279,000	2,688,000	8,505,000	7,660,000
Total revenues	12,752,000	14,584,000	38,100,000	39,041,000

Cost of revenues-
Cost of product sales	4,413,000	6,236,000	14,272,000	15,418,000
Cost of service revenue	2,109,000	1,876,000	6,129,000	5,442,000
Total cost of revenues	6,522,000	8,112,000	20,401,000	20,860,000

Gross margin	6,230,000	6,472,000	17,699,000	18,181,000
Operating income (loss)	1,318,000	(111,000)	3,083,000	668,000
Net income (loss)	1,005,000	(224,000)	2,349,000	319,000

Earnings (loss) per share:
Basic	$ 0.06	$ (0.02)	$ 0.13	$ 0.00
Diluted	$ 0.05	$ (0.02)	$ 0.12	$ 0.00

Weighted average common shares outstanding:
Basic	16,304,013	14,484,564	16,096,985	13,908,920
Diluted	20,267,042	14,484,564	20,108,236	15,386,200


	March 31,	June 30,
	2008	2007

Current assets	$12,753,000	$10,840,000
Property and equipment	849,000	934,000
Other long-term assets	7,658,000	7,800,000
Total assets	$21,260,000	$19,574,000

Current liabilities	$8,814,000	$9,725,000
Long-term liabilities	80,000	0
Series F convertible preferred stock	3,629,000	3,629,000
Stockholders' equity	8,737,000	6,220,000
Total liabilities and stockholders' equity	$21,260,000	$19,574,000