Avatech Solutions Opens Houston Office

BALTIMORE—(BUSINESS WIRE)—Oct. 5, 2005— Avatech Solutions, Inc. (OTCBB: AVSO.OB), the recognized leader in design and engineering technology for the manufacturing, building design and engineering markets, today announced that the company has made another bold expansion move by opening an office in Houston, TX.

"On the heels of a record-breaking 2005 fiscal year, our expansion into Houston is part of a larger strategic growth plan to capture and lead market share in more metropolitan centers across the country," said Scotty Walsh, CEO at Avatech.

Avatech has traditionally expanded business through strategic acquisitions of other companies. The Houston expansion is Avatech's first targeted market penetration that is not linked to an acquisition.

"Houston is the fourth largest city in the United States. Staking claim in Houston brings us one step closer to Avatech's corporate goal of reaching $100M in revenues by 2008," added Walsh.

Responding to Market Readiness

Indicators reveal that clients in the Houston market are characterized as having increasingly complex needs that would benefit from more full-service solutions.

"Within the greater Houston area, we offer a competitive advantage to customers by providing a full range of customized services," added Bill Zavadil, V.P. of Business Development at Avatech. "As a leading design and engineering systems integrator, and a full service solutions provider, we are able to better satisfy the evolving needs of customers in the Houston area."

The greater Houston area's manufacturing sector-which includes more than 6000 companies-indicates massive potential to be more fully serviced. Accordingly, the Houston team will focus significant efforts in the mechanical and manufacturing market.

And with Texas having a large installed base of AutoCAD software, the Houston team will also show customers the value and benefit of moving to industry specific applications, including a risk-free path to 3D design and acceleration of product development cycles with data management.

Solidifying Avatech's Footprint Across Texas

For more than 15 years, Avatech has enjoyed a prominent footprint in the Texas area-primarily through the company's Dallas office. With the addition of the Houston office, Avatech is in a better position to cultivate a leading presence in that metropolitan area.

As in all its offices, Avatech's Houston office will provide the full suite of services from data management to full design automation to expert training and technical support, backed by Avatech's National Support Center.

The office opens this week and is located at 7700 San Felipe, Suite 490. With the inclusion of Houston, Avatech now operates from 17 cities across the country.

About Avatech Solutions 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.avatechsolutions.com for more information.

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Avatech Solutions, Inc.
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Fax: 410-753-1591

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