Beacon Solutions Announces Third Quarter Results.

Quarterly Revenue Increases 29% to $3.0 Million, Fiscal Year-To-Date Revenue Up 75% to $7.1 million

LOUISVILLE, Ky. & ZURICH -- Beacon Enterprise Solutions Group, Inc. (OTCBB: BEAC), a global leader in the design, implementation and management of high performance Layer 1 network solutions, today announced its financial results for the third quarter and fiscal year-to-date ended June 30, 2009.

Revenue for the quarter and fiscal year-to-date ended June 30, 2009, was $3.0 million and $7.1 million respectively, up from $2.4 million and $4.1 million in the prior year period, an increase of 29% and 75% respectively.

Fiscal Third Quarter Highlights:

* Increased quarterly revenue to $3.0 million, a 29% increase from $2.4 million in the prior year period.

* Increased fiscal year-to-date revenue to $7.1 million, a 75% increase from $4.1 million in prior year period.

* Improved adjusted EBITDA, as defined below, to approximately ($656,000), a 3% improvement from approximately ($678,000) in the prior year period.

* Announced the acquisition of Switzerland based SymbioTec Solution AG, which is expected to add a minimum of $10.0 million in profitable revenue in FY 2010.

* Announced a series of new technology infrastructure engagements, the opening three additional markets and international projects in Mexico, Germany, Spain, Italy, France and the UK.

* Announced contracts with a national grocery chain and one of the world's largest apparel retailers and expanded a previously announced $19.5 million three year contract with a Fortune 500 pharmaceutical company.

Excluding non-cash charges, interest, and non-recurring expenses adjusted EBITDA, defined below, during the quarter and year-to-date ended June 30, 2009, improved by 3% to approximately ($656,000) and 7% to ($2,067,000) respectively vs. approximately ($678,000) and ($2,229,000) during the prior year period.

Including non-cash charges, interest and extraordinary expenses, the net loss per share during the quarter and year-to-date periods narrowed to ($0.10) and ($0.32) respectively vs. a net loss of ($0.11) and ($0.81) in the prior year periods.

Balance Sheet improvements during the period vs. the prior year's audit included an increase in current assets of approximately $1.9 million to $4.1 million, an increase in total assets of approximately $1.5 million to $10.9 million, and an increase in stockholders' equity of approximately $1.0 million to $5.0 million.

Bruce Widener, CEO of Beacon Solutions, stated, "We're continuing to expand our business and rapidly increase revenue as we drive toward profitability. In the third quarter we increased our personnel and infrastructure support expenditures in preparation for projects being implemented in the current quarter and have positioned the expanded service capacity to support new projects well into the future. This preparation will result in a significant improvement in future operating margins and provide an expedited return on our operational investment to maintain our pace to produce positive earnings in 2009. The entire Beacon Solutions management team will delve into the financial results in more detail, along with answering questions during a brief Q&A session on this afternoon's conference call."

Conference Call Details

Beacon Solutions will hold a conference call to discuss its financial results, latest contract wins and growth in 2009 and beyond at 4:30 pm, Eastern Daylight Time, Wednesday, August 12. Participants on the call will include Bruce Widener, Chairman and Chief Executive Officer, Rick Mills, President and Robert Mohr, Chief Accounting Officer.

The teleconference can be accessed by calling 888-495-3916 and entering conference ID # 24408248. Participants outside of the U.S. and Canada can join by calling 706-643-6269 and entering the same conference ID. Please dial in 15 minutes prior to the beginning of the call.

Management will respond to questions submitted via email during the call. Please submit questions to [e-mail]. Questions may be submitted prior to or during the call. A webcast of the call will be available on Beacon Solutions' Investor Relations portal www.trilogy-capital.com/autoir/beac_autoir.html as well as the Company's website at www.askbeacon.com.

Non-GAAP Financial Measure

In addition to presenting financial results in accordance with generally accepted accounting principles, or GAAP, this earnings release also presents adjusted earnings before interest, taxes, depreciation and amortization, share based payments, deemed and contractual dividends, and expenses that management believes will not re-occur in future periods including certain investor relations and subcontractor expenses ("Adjusted EBITDA"). Adjusted EBITDA is calculated by deducting operating and other expenses from operating income and excluding amounts related to interest expense, income tax expense or benefit, depreciation expense, amortization expense, non-cash share based payments, deemed and contractual dividends, certain investor relations expenses, certain subcontractor expenses and any gain or loss on disposal of assets. Although we will continue to expend significant resources on investor relations in the future, management believes that certain investor relations expenses incurred in the current fiscal year are unusually high as we build investor awareness, and that a portion of these expenses will not re-occur in future years. Certain subcontractor expenses are impacting our current fiscal year as we open markets through Beacon certified subcontractors who will be replaced by Beacon personnel over the coming months as Beacon serves markets of sufficient size to support internal operations. Beacon believes this non-GAAP financial measure provides investors with additional insight into our ongoing operating performance. This non-GAAP financial measure should be considered in conjunction with, but not as a substitute for, the financial information presented in accordance with GAAP.

About Beacon Enterprise Solutions Group, Inc.

Beacon Enterprise Solutions Group is an emerging growth, high-performance provider of advanced IT solutions with a commitment to the proactive optimization of client companies' operations. Beacon is capitalizing on opportunities created by the world-wide economic contraction through the provision of rapid deployment, broad spectrum, fully integrated IT programs with state-of-the-art, next-generation design, engineering, installation and managed services. Beacon's business model creates a clearly defined early mover advantage due to our unique position as a leader in the provision of fully integrated turnkey solutions capable of fully servicing the largest companies in the world as they increasingly outsource to reduce costs while optimizing critical IT design and infrastructure management. Through an integrated team approach, Beacon offers customers everything to make their communications run, from telecom infrastructure design, to software development, to voice/data/security system integration, system installation and maintenance, in addition to long distance, VoIP and Internet access service. Beacon's client roster includes state and local agencies, educational institutions, and over 4,000 companies ranging in size from mid-sized companies to the Fortune 500. While Beacon services customers globally, it is headquartered in Louisville, Ky., with offices in Cincinnati and Columbus, Ohio; Zurich, Switzerland and dedicated personnel in Mangalore, India.

For comprehensive investor relations material, including fact sheets, research reports, interviews and video, please follow the appropriate link:

Investor Relations Portal, Research Report and CEO Overview Video

For additional information, please visit Beacon's corporate website:

www.askbeacon.com

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Forward-Looking Statements

This press release may contain "forward looking statements." Expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements may include, without limitation, statements about our market opportunity, strategies, competition, expected activities and expenditures as we pursue our business plan. Although we believe that the expectations reflected in any forward looking statements are reasonable, we cannot predict the effect that market conditions, customer acceptance of products, regulatory issues, competitive factors, or other business circumstances and factors described in our filings with the Securities and Exchange Commission may have on our results. The company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.