Press Release

Fiscal 2008 Second Quarter Results

Total revenues for the second quarter of fiscal 2008 were $143.1 million, compared to $148.4 million in the second quarter of fiscal 2007. Core powerline revenues for the second quarter of fiscal 2008 were $123.5 million, as compared to $134.3 million for the second quarter of fiscal 2007. Core powerline revenue per billable hour increased 7.1% year over year, reflecting more favorable pricing from contract renegotiations and the elimination of certain accounts that did not meet the Company's profitability goals. Core powerline billable hours decreased 14.1% year over year in the quarter due primarily to reduced headcount as a result of the exiting of certain contracts, in addition to increases in storm restoration work, which diverted some man-hours from core powerline work. Storm restoration revenues totaled $19.6 million for the second quarter of fiscal 2008 due to damage caused by winter storms primarily in the Midwest and Mid-Atlantic regions, compared to $14.1 million for the second quarter of fiscal 2007.

Gross profit for the second quarter of fiscal 2008 was $24.5 million, or 17.1% of revenue, compared to $24.5 million, or 16.5% of revenue, for the second quarter of fiscal 2007. The 60 basis point improvement in gross margin year over year was primarily due to an increase in higher margin storm revenue, operational efficiency improvements and the successful elimination of certain lower margin accounts and services during fiscal 2007, partially offset by a $0.5 million investment in new fire retardant uniform shirts.

General and administrative expenses for the second quarter of fiscal 2008 were $10.6 million, or 7.4% of revenue, compared to $10.7 million, or 7.2% of revenue, for the second quarter of fiscal 2007. Lower legal and accounting expenses in the quarter were partially offset by an increase in cost related to information technology staffing and initiatives. Interest expense decreased 25.2% to $3.8 million compared to the second quarter of fiscal 2007 primarily due to lower debt balances.

During the second quarter of fiscal 2008, the Company determined that it was highly likely that certain idle equipment would be sold in the near future, and not placed back into service. Accordingly, the Company recorded a $1.9 million ($1.2 million net of tax or $0.03 per diluted share) impairment charge.

Net income for the second quarter of fiscal 2008 totaled $5.1 million, or $0.15 per diluted share, compared to net income of $5.2 million, or $0.16 per diluted share, for the second quarter of fiscal 2007.

The Company has reduced total debt by $24.0 million during the first six months of fiscal 2008.

"During the second quarter, Pike continued to drive profitable business as we focused on improving productivity and efficiency," stated J. Eric Pike, Chairman and Chief Executive Officer of Pike Electric. "Our decision to exit certain low margin accounts during fiscal 2007 contributed to our gross profit margin expansion as we realized improved pricing, but also continued to affect our year over year revenues. We benefited during the quarter from higher storm restoration work as we responded to the winter storms in the Midwest and Mid-Atlantic regions. As a result, our core powerline revenues were impacted, as we diverted man-hours to storm work."

"Our primary goal is to deliver consistent core powerline performance over the long term, while maintaining industry-leading profitability levels," continued Mr. Pike. "While we expect growth in the near term to remain moderate in light of the difficult economic conditions, we remain focused on capturing profitable business and building the capacity and quality of our workforce. Solid industry fundamentals continue to support long term demand for maintenance and upgrades to the distribution and transmission network. With the right people in place, we believe we will be well positioned to capitalize on our customers' growth over the coming years."

Six Months Ended December 31, 2007 Results

Total revenues for the six months ended December 31, 2007 were $282.9 million, as compared to $298.2 million for first six months of fiscal year 2007. Core powerline revenues were $258.4 million for the six months ended December 31, 2007, as compared to $271.9 million for the same period in fiscal 2007, as an 8.6% increase in core powerline revenue per billable hour was offset by the 12.5% decline in core powerline billable hours. Storm restoration revenues totaled $24.5 million for the six-month period compared to $26.3 million in fiscal 2007. Gross profit totaled $47.7 million for the six months ended December 31, 2007, as compared to $44.3 million for the same period in fiscal 2007. Gross profit as a percentage of revenue increased to 16.9% from 14.8% in fiscal year 2007 due to operational efficiency improvements and the successful elimination of certain lower margin accounts and services during fiscal 2007. Net income for the first six months of fiscal 2008 totaled $10.4 million, or $0.31 per diluted share, compared to net income of $6.8 million, or $0.21 per diluted share, for the first six months of fiscal 2007.

Outlook

Based on a challenging economic environment and current market conditions, the Company now expects fiscal year 2008 core powerline revenues to range from $520 million to $530 million revised from its prior expectation of $550 million to $560 million. The Company continues to expect total gross profit margins to be in the range of 16% to 17% and general and administrative expenses to be in a range of 7% to 8% of revenues.

Storm restoration revenues are unpredictable from year-to-year, and are entirely dependant on the weather. Therefore the Company is not providing fiscal 2008 storm restoration revenue guidance. Any significant variations in storm restoration revenues may result in year-to-year fluctuations in core powerline revenue growth.

Conference Call

Pike Electric will host a conference call today to discuss financial results for its fiscal second quarter ended December 31, 2007 at 5:00 p.m. EST on February 5, 2008. This call is being web cast and can be accessed by visiting the Investor Relations section of the Company's website at www.pike.com. The call can be accessed live over the phone by dialing (888) 218-8125, or for international callers, (913) 312-6672. A replay will be available shortly after the call and can be accessed by dialing (888) 203- 1112, or for international callers, (719) 457-0820. The passcode is 1944477. The replay will be available until February 12, 2008.

About Pike Electric

Pike Electric is one of the largest providers of outsourced electric distribution and transmission services in the United States. Its core activities consist of the maintenance, upgrade and extension of electric distribution and sub-500 kilovolt transmission powerlines for more than 150 electric utilities, cooperatives and municipalities. Pike Electric services a contiguous 19-state region that stretches from Pennsylvania in the north to Florida in the southeast and Texas in the southwest and is a recognized leader in storm restoration services. The Company's common stock is traded on the New York Stock Exchange under the symbol PEC. For further information regarding Pike Electric, visit the Company's website at www.pike.com.

Safe Harbor

This press release contains forward-looking statements that relate to Pike Electric's plans, objectives and estimate, and include those in the "Outlook" section above. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and speak only as of the date of this release. The terms "should," "believe," "plan," "expect," "anticipate," "estimate," "intend" and "project" and similar words or expressions are intended to identify forward-looking statements. Various risks, uncertainties and other factors could cause actual results to differ materially from those expressed in any forward-looking statements. For a more detailed list of such risks, uncertainties and factors, please refer to the Risk Factor section of Pike Electric's Annual Report on Form 10-K for the fiscal year ending June 30, 2007 and in its other filings with the Securities and Exchange Commission. Pike Electric makes no commitment to update any forward-looking statement or to disclose any facts, events, or circumstances after the date of this release that may affect the accuracy of any forward- looking statement, except as may be required by applicable law.

                  PIKE ELECTRIC CORPORATION AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                   (In thousands, except per share amount)

                                                       December 31,  June 30,
                                                           2007        2007
                                                       (Unaudited)
              ASSETS
    Current assets:
      Cash and cash equivalents                              $60      $1,467
      Accounts receivable from customers, net             71,772      59,603
      Work completed not billed                           37,342      44,527
      Inventories                                          8,784       8,535
      Prepaid expenses and other                           4,916       6,219
      Deferred income taxes                               15,056      13,633
        Total current assets                             137,930     133,984
    Property and equipment, net                          247,963     267,740
    Goodwill                                              94,402      94,402
    Other intangibles, net                                41,647      43,228
    Deferred loan costs, net                               3,612       4,482
    Other assets                                           1,661       1,661
        Total assets                                    $527,215    $545,497

              LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
      Accounts payable                                    $9,127      $8,503
      Accrued compensation                                20,314      20,597
      Accrued expenses and other                           3,207       4,447
      Income taxes payable                                 2,214       6,146
      Current portion deferred compensation                4,641       3,544
      Current portion of insurance claim accruals         28,399      26,669
      Revolving credit facility                              800           -
        Total current liabilities                         68,702      69,906
    Long-term debt, net of current portion               166,700     191,500
    Insurance and claim accruals, net of current
     portion                                              11,170      10,894
    Deferred compensation, net of current portion          5,935       9,315
    Deferred income taxes                                 64,119      67,259
    Other liabilities                                        916         562
    Commitments and contingencies
    Stockholders' equity:
      Preferred stock, par value $0.001 per share;
       100,000 shares authorized; no shares issued
       and outstanding                                         -           -
      Common stock, par value $0.001 per share;
       100,000 shares authorized; 33,131 and 32,916
       shares issued and outstanding at December 31,
       2007 and June 30, 2007, respectively                6,427       6,426
      Additional paid-in capital                         146,349     142,849
      Accumulate other comprehensive income (loss)          (260)         (8)
      Retained earnings                                   57,157      46,794
        Total stockholders' equity                       209,673     196,061
        Total liabilities and stockholders' equity      $527,215    $545,497



                  PIKE ELECTRIC CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                 (Unaudited)
                   (In thousands, except per share amounts)

                                     Three months ended     Six months ended
                                        December 31,           December 31,
                                       2007       2006        2007      2006

    Revenues                        $143,116   $148,369    $282,852  $298,224
    Cost of operations               118,653    123,857     235,110   253,972

    Gross profit                      24,463     24,512      47,742    44,252
    General and administrative
     expenses                         10,564     10,722      20,876    22,278
    Loss on sale and impairment of
     property and equipment            1,939        131       1,984       498

    Income from operations            11,960     13,659      24,882    21,476
    Other expense (income):
      Interest expense                 3,774      5,045       8,146    10,223
      Other, net                         (64)       (58)       (125)     (116)
    Total other expense                3,710      4,987       8,021    10,107

    Income before income taxes         8,250      8,672      16,861    11,369
    Income tax expense                 3,171      3,452       6,498     4,547

    Net income                        $5,079     $5,220     $10,363    $6,822

    Earnings per share:
      Basic                            $0.15      $0.16       $0.32     $0.21
      Diluted                          $0.15      $0.16       $0.31     $0.21

    Shares used in computing earnings
     per share:
      Basic                           32,833     32,353      32,764    32,288
      Diluted                         33,668     33,242      33,677    33,233

SOURCE Pike Electric Corporation

http://www.pike.com