Charys' Cotton Companies Deployed as Erin Pummels Houston in Largest Single Day Response since Allison.

Teams Stand Ready as Dean Closes in on Caribbean

ATLANTA -- Charys Holding Company, Inc. ("Charys") (OTC Bulletin Board: CHYS) announced today that its wholly owned subsidiary Cotton Companies (collectively, "Cotton"), a disaster recovery group of companies specializing in fire and water restoration services, has deployed first response resources to Houston, Texas in an immediate response to flooding caused by Tropical Storm Erin. The first day mitigation estimate for the Houston area shows this as the largest demand for service since Tropical Storm Allison in 2001, with indications of significant additional response demanded in the next several days.

Erin deluged the Houston area on Thursday, August 16th and poured more than 9 inches of water into the downtown area. The National Weather Service has extended a flash flood warning through Friday as the forecast calls for the potential of 1-3 more inches of rain. Instituting pre-planned response procedures, Cotton dispatched crews without delay to several high importance locations including schools, grocery facilities and a university location, a member of its Preferred Client Program, to begin immediate restoration.

Simultaneously, Cotton is on "ready alert" mode for immediate deployment of personnel and equipment as Hurricane Dean continues its path of impact toward Jamaica and Mexico. These critical disaster teams are in addition to day-to-day operations that have dispatched crews to Colorado, Tennessee, San Antonio, North Carolina and Georgia for remediation, fire restoration and reconstruction projects. Prioritization of operations continues in traditional mode, even as preparations are readied for the increasing hurricane activity.

Pete Bell, President of Cotton, commented, "The damage caused by natural disasters can be extensive, as well as diminish hope of the lives affected. Our trademark quick response and professionalism insures that lives and businesses are put back in order with minimal disruption. Now that the integration between Cotton and C&B has been completed we have more than adequate resources to manage not only our day to day business but also any large catastrophe that may develop."

Billy V. Ray, Jr., Charys CEO noted, "Cotton's experience and track record are models for the industry. With the planning and preparation work, developed in conjunction with state and local government leaders, we are able to quickly provide citizens and business clients with timely and effective services."

This press release contains forward-looking statements. These statements are based upon Charys' current expectations and speak only as of the date hereof. Actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including uncertainties as to the nature of the industry, including changing customer demand, the impact of competitive products and pricing, dependence on existing management and general economic conditions. Charys' Annual Report on Form 10-KSB, recent and forthcoming Quarterly Reports on Form 10-QSB, recent Current Reports on Form 8-K and other SEC filings discuss some of the important risk factors that may affect Charys' business, results of operations and financial condition. Management undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

About Cotton Companies

Cotton is a disaster recovery group of companies specializing in fire and water restoration services ranging from initial project assessment and planning, through catastrophe management reconstruction, restoration and environmental remediation. For more information, visit www.cottoncompanies.com

About Charys Holding Company, Inc.

Headquartered in Atlanta, Georgia, Charys is a publicly traded company providing infrastructure services in two primary markets. In the restoration and reconstruction markets, Charys services include emergency planning and coordination, response to catastrophic losses, reconstruction and restoration and environmental restoration. In the wireless communications and data infrastructure markets, Charys provides an array of services including engineering, program management, construction, installation and maintenance, tower services, radio and advanced technology implementation and integration services to large service providers and other business enterprises.