February 5, 2007 — BALTIMORE, MARYLAND — Avatech Solutions, Inc. (OTCBB: AVSO.OB), the nationwide technology experts for design, engineering, and facilities management, today announced that Board member Thom Waye, Managing Partner and Founder of Sigma Opportunity Fund, LLC, will succeed W. James Hindman as Chairman effective immediately. Mr. Hindman will remain on the Avatech Board.

Avatech also announced that it has closed on a private placement of common stock and common stock warrants with Sigma Opportunity Fund, LLC and three members of its Board of Directors who made personal investments, George Davis, Robert Post and Gary Clark. Under the terms of the private placement, the Company raised $1,650,000 through the sale of 1,085,170 common shares priced at $1.5205 per share and the issuance of 726,102 warrants to purchase common shares at $1.5205 per share.

W. James Hindman commented, "Avatech has already benefited greatly from Thom's unique combination of financial and operational experience since he joined our Board in November 2006. With his outstanding business acumen and track record of success, Thom is superbly qualified to help lead the Company through its next phase of development."

Thom Waye stated, "On behalf of the entire Company, I want to express my gratitude to Jim Hindman. As demonstrated by his many successes, including the founding of Jiffy Lube, he is one of the most creative and successful entrepreneurs with whom I have worked. Taking from his real-life experience as a football coach, Jim mentored and ‘coached' the Avatech management team from the kickoff to the playoffs. Over the last 10 years, he brought new vision and focus to the Company, repositioning Avatech for future growth and success.

"The further investment from several Board members and Sigma Opportunity Fund clearly demonstrates our substantial commitment to, and confidence in, the Company's growth prospects. The proceeds from this private placement, coupled with the Company's on-going success, provide us with additional funds to capitalize on the tremendous opportunities that await the Company. We are now prepared to continue Jim's work in expanding Avatech's national presence and furthering its transformation into a diversified services and solutions provider."

Additional information regarding the common stock and warrant purchase agreement is contained in the Company's current report on Form 8-K, which has been filed with the Securities and Exchange Commission.

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

About Sigma Opportunity Fund
Sigma Opportunity Fund is a private equity fund that provides growth capital for micro-cap public companies operating in the IT, Telecom and Healthcare industries. The Fund has an active, long-term investment approach, and works closely with management to unlock shareholder value and provide guidance and assistance in the areas of finance, capital markets, operations, strategy and business development. For more information about Sigma please visit www.sigmacp.com .

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 the Company's financial results, are included in its Securities and Exchange Commission filings, including, but not limited to, the annual report on Form 10-K for the fiscal year ending June 30, 2006 and other Securities and Exchange Commission filings. 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.