Avatech Solutions Reports Results of Special Shareholders Meeting; Vote Increases Company's Shares to Facilitate Aggressive Growth.

BALTIMORE -- Avatech Solutions, Inc. (OTCBB:AVSO.OB), the recognized leader in design and engineering systems integration for the manufacturing, building design and engineering markets, announced today that its shareholders, at a special shareholders meeting, have approved an increase in the company's authorized capital stock from 25 million shares to 100 million shares, 80 million of which can be issued as common stock, and 20 million of which can be issued as preferred stock. At the special meeting, the stockholders also approved an increase in the number of shares that can be issued to the company's employees under the company's employee stock purchase plan.

"The purpose of the increase in authorized capital stock is to enable the company's growth, both through new infusions of capital and to provide 'currency' for mergers and acquisitions," said Scotty Walsh, CEO at Avatech Solutions. "A vital part of Avatech's strategic plan is to grow the consulting and professional services component of all three of our lines of business - design automation, product lifecycle management, and facilities management. We intend to acquire companies that fit well within this strategic direction. Further, our financing strategy requires the availability of additional shares - both common and preferred - to facilitate those transactions as well as to raise additional capital."

The special shareholder's meeting was held June 4, 2004 at Avatech's corporate headquarters in Owings Mills, Maryland. In addition to approving the increase in the company's authorized capital shares, the stockholders also voted to increase the numbers of shares available under its employee stock purchase plan to assure that a sufficient number of shares would be available to allow all of its employees to continue to participate. Continued Walsh, "Attracting and retaining the best talent in the industry is an important part of our growth strategy. By offering benefits such as the Employee Stock Purchase Program, we feel we can recruit the calibre of professionals with unparalleled industry expertise our customers have come to expect to deliver superior services."

About Avatech Solutions

Avatech Solutions, Inc. (OTCBB:AVSO.OB) is the recognized leader in design and engineering technology with unparalleled expertise in CAD software, data management and process optimization for the manufacturing, engineering, building design and facilities management industries. Headquartered in Owings Mills, Maryland, the company specializes in software systems integration, standards development and deployment, education and technical support. Avatech is one the largest integrators of Autodesk software worldwide and a leading provider of SMARTEAM PLM solutions. The company serves 18,000 clients worldwide including the industry leaders from Fortune 500 and Engineering News Record's Top 100 companies. Visit http://www.avatechsolutions.com for more information.

This press release contains forward-looking statements about the expectations, beliefs, plans, intentions and strategies of Avatech Solutions, Inc. There are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. A description of risks and uncertainties attendant to Avatech and its industry, and other factors that could affect Avatech's financial results, are included in Avatech's Securities and Exchange Commission filings, including, but not limited to, the annual report on Form 10-K for the year ended June 30, 2003, the Proxy Statement filed on October 10, 2003 in connection with Avatech's 2003 annual shareholder meeting, the quarterly reports on Form 10-Q for the quarters ended September 30, 2003, December 31, 2003, and March 31, 2004 and the current reports on Form 8-K filed with the Securities and Exchange Commission on November 17, 2003, January 21, 2004, and May 18, 2004. Investors and shareholders may obtain a free copy of the documents filed by Avatech Solutions, Inc. with the Commission at the Commission's web site at www.sec.gov. The documents also may be obtained for free by directing a request to Melody Craigmyle, Director of Corporate Communications at 410-581-8080 or email [e-mail].

All brand names, product names, or trademarks belong to their respective holders.