HOUSTON, Dec. 2 /PRNewswire-FirstCall/ -- Integrated Electrical Services,
Inc. (NYSE: IES) today announced that it had completed the sale of
substantially all of the assets of a commercial business for total cash
consideration of approximately $4.0 million.  This unit, based in Alabama, was
one of the units contemplated in the company's October 28, 2004 press release
which indicated that IES planned divestitures with combined fiscal year 2004
revenues of approximately $289 million.
    Roddy Allen, IES CEO commented, "I am pleased to announce this initial
sale, as it is part of our previously announced strategic plan to improve IES'
profitability and operating efficiency. We intend to update the market on our
divestiture progress on a regular basis."  The unit sold had fiscal year 2004
revenues of $19.0 million and an operating loss of $410 thousand. The net
proceeds from this sale will be used to retire IES' senior secured
indebtedness.
    Integrated Electrical Services, Inc. is the leading national provider of
electrical solutions to the commercial and industrial, residential and service
markets. The company offers electrical system design and installation,
contract maintenance and service to large and small customers, including
general contractors, developers and corporations of all sizes.

    This press release includes certain statements, including statements
relating to the Company's expectations of its future operating results that
may be deemed to be "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements are based
on the Company's expectations and involve risks and uncertainties that could
cause the Company's actual results to differ materially from those set forth
in the statements. Such risks and uncertainties include, but are not limited
to, the inherent uncertainties relating to estimating future results,
potential consequences of late filing of the Company's quarterly report on
Form 10-Q/10-K and associated defaults under the Company's debt and financial
covenants, potential difficulty in addressing material weaknesses in the
Company's accounting systems that have been identified to the Company by its
independent auditors, the possible need for a restatement of prior year
periods if amounts are determined to be material, the size of a recent verdict
may result in a default under the Company's credit facility and senior
subordinated notes, the potential inability to obtain waivers from its credit
facility participants and senior subordinated note holders it could have a
material adverse impact on the Company's financial position, results of
operations or cash flows,  potential limitations on access to the line under
the credit facility, litigation and appellate risks and uncertainties,
inability to provide a bond to avoid execution on any judgment entered, the
recent verdict could increase customers' demand for surety bonding,
fluctuations in operating results because of downturns in levels of
construction, incorrect estimates used in entering into and executing
contracts, difficulty in managing the operation of existing entities, the high
level of competition in the construction industry, changes in interest rates,
general level of the economy, increases in the level of competition from other
major electrical contractors, increases in costs of labor, steel, copper and
gasoline, limitations on the availability and the increased costs of surety
bonds required for certain projects, inability to reach agreement with its
surety bonding company to provide sufficient bonding capacity, the uneconomic
collateral requirements of the surety in order to obtain surety bonding, risk
associated with failure to provide surety bonds on jobs where the company has
commenced work or is otherwise contractually obligated to provide surety
bonds, loss of key personnel, inability to reach agreement for planned sales
of assets, difficulty in integrating new types of work into existing
subsidiaries, errors in estimating revenues and percentage of completion on
contracts, and weather and seasonality. The foregoing and other factors are
discussed and should be reviewed in the Company's filings with the Securities
and Exchange Commission, including the Company's Annual Report on Form 10-K
for the year ended September 30, 2003.

     H. Roddy Allen, CEO
     Integrated Electrical Services, Inc.
     713-860-1500

     Ken Dennard
     ksdennard@drg-e.com

     Karen Roan
     DRG&E
     713-529-6600
     kcroan@drg-e.com

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