Charys Holding Company, Inc. Closes on $20 Million Subordinated Convertible Debt Financing to Redeem Notes and Move Acquisitions Forward.

ATLANTA -- Charys Holding Company, Inc. ("Charys") (OTCBB:CHYS) today announced that it has closed $20 million in new financing. The financing is in the form of subordinated convertible debt that carries a 10% coupon rate and a 24-month term, with the Debentures issued by Charys to a select group of new and existing institutional investors ("Investors").

The proceeds of the debt offering will be used to pay off sellers notes associated with previously closed acquisitions and to increase Charys' working capital position. Proceeds will also be used to make the initial cash payment of the previously announced acquisitions of Complete Tower Sources, Inc. and Mitchell Site Acq. Inc. These two acquisitions combined represent approximately $50 million in 2005 revenue and over $20 million in 2005 EBITDA.

Charys will grant to the Investors a senior security interest that is subordinate to existing security interests, granted to the banks and other senior debt lenders, in substantially all of the assets of Charys and its subsidiaries.

In addition, Charys shall issue to the Investors approximately five million Warrants at market to purchase shares of its Common Stock. The Debenture is convertible into Common Stock at 115% of the volume weighted average price prior to the Closing Date. Charys will make interest payments for the first 9 months, after which payments of principal and interest are scheduled to begin. Charys has the right to redeem the Debentures in cash any time prior to maturity upon three (3) business days prior written notice, at one hundred twenty percent (120%) of the principal amount redeemed for the initial twelve (12) months after the Closing Date and one hundred forty percent (140%) thereafter, plus the amount of any accrued but unpaid interest. In the event of any redemption of the Debenture, the Investors shall retain the Warrants and the "Registration Rights" that attached thereto. Additional conversion terms become effective if not redeemed or converted nine months after the Closing Date. More details on the Debenture facility will be found in our 8K filing with the SEC.

According to Billy Ray, Jr., Charys' Chairman and CEO, "With the completion of this $20 million round of financing, in addition to the $35 million revolving credit announced earlier this week, Charys continues to move forward in the successful execution of our strategy to acquire and integrate firms that provide the highest caliber of services to our customers, and return to our shareholders. We have identified excellent companies to acquire, and closed on the transactions in a manner that demonstrates the skills of the Charys management team. In addition to the acquisition value each of our companies provides, our growing team of subsidiary managers brings the expanded value of all of the Charys companies to each of their customers. Our shareholders are benefiting through the integration of our subsidiaries, with cost efficiencies and, even more important, an expanded portfolio of products and services that greatly enhances the value to our customers."

About Charys Holding Company, Inc.

Headquartered in Atlanta, Georgia, Charys Holding Company, Inc. (OTC Bulletin Board: CHYS.OB - News) is a publicly traded company focusing on the fragmented and underserved segment referred to as The Integrated Infrastructure Services Segment. This segment is fundamentally focused on environmental remediation and on upgrading the underpinning, infrastructure, and back office operations of the telecommunication, cable, electric, and Internet industries serving consumers, businesses and government entities. Charys' principle strategy is to acquire, through mergers and acquisitions, companies that support this underserved segment. Charys subsidiaries include: Viasys Services, Inc., Personnel Resources of Georgia, Inc., Method IQ, Inc., CCI Telecom, Inc., Digital Communication Services, Inc., Ayin Holding Company, Inc. and Crochet & Borel Services, Inc.

For more information about Charys visit http://www.charys.com.

NOTE: The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

Some statements in this release, including statements regarding management's expectations for future financial results and access to capital markets, are forward-looking statements. Investors are cautioned that these forward-looking statements regarding Charys Holding Company, Inc. and its subsidiaries and its and their operations and financial results involve risks and uncertainties, including without limitation risks of accessing capital markets on terms acceptable to Charys, downturns in economic conditions generally and in the telecommunications and data communications markets; risks in product development and market acceptance of and demand for Charys products; risks of failing to attract and retain key managerial and technical personnel; risks associated with competition and competitive pricing pressures; risks associated with investing in new businesses; risks related to intellectual property rights and litigation; risks in technology development and commercialization.