Beacon Enterprise Solutions Extends Offer for Outstanding Warrants

LOUISVILLE, Ky.--(BUSINESS WIRE)-- Beacon Enterprise Solutions Group, Inc. (OTCBB: BEAC), an emerging global leader in the design, implementation and management of high performance Information Technology Systems (“ITS”) infrastructure solutions, today announced an offer to the Company’s warrant holders intended to induce the exercise of such warrants. The Company intends to streamline its equity capitalization by reducing the number of outstanding warrants and removing broad-based anti-dilution provisions from any remaining warrants.

Bruce Widener, CEO of Beacon Solutions, stated, “We have increased quarterly sales by more than 30 percent in each of the last four consecutive quarters and have grown our revenue base from approximately $1.8 million in our 2009 first quarter to more than $8.5 million in the 2010 first quarter. As we prepare for the next phase of our growth and begin to present our Company to the institutional market, we believe that it is in the best interest of our stakeholders to reduce the number of outstanding warrants. We look forward to assisting our warrant holders in this process and will keep our shareholders and market participants informed of our progress in this endeavor.”

As disclosed in the Company’s public filings, Beacon currently has approximately 16 million warrants outstanding and exercisable at prices ranging from $1.00 to $2.50. The majority of the warrants, which are related to equity financings from 2007 – 2009, are exercisable at $1.00 per share. The Company intends to reduce the number of warrants outstanding and/or its total number of fully diluted shares outstanding by extending the following offer to its warrant holders:

Assuming that the Company receives responses from holders of at least 60% of its warrant holders, warrant holders can either: i) exercise some or all warrants to purchase restricted shares of common stock at a 10% discount to their stated exercise price on a cash only basis or ii) effect a cashless exercise at a deemed fair market value of $1.40, so that each warrant to purchase 3.5 shares of common stock will be exchanged for one share of common stock, on or before March 30, 2010. The Company, in its sole discretion, may extend the expiration date of the offer.

In addition, the Company is requesting that its warrant holders waive broad-based anti-dilution provisions contained in certain classes of warrants. As previously disclosed, recently issued and adopted accounting pronouncements require that warrants with anti-dilution provisions be valued and reclassified from equity to liability on the Company’s balance sheet. This accounting change resulted in a non-cash liability of approximately $5.7 million on the Company’s previously reported balance sheet as of December 31, 2009. Upon receipt of the waivers, the Company will be able to reclassify this non-cash liability as equity, resulting in a significant reduction in total liabilities on the Company’s balance sheet.

About Beacon Enterprise Solutions Group, Inc.

Beacon Enterprise Solutions Group is an emerging global leader in the design, implementation and management of high performance Information Technology Systems (“ITS”) infrastructure solutions. Beacon offers fully integrated, turnkey IT infrastructure solutions capable of fully servicing the largest companies in the world as they increasingly outsource to reduce costs while optimizing critical IT design and infrastructure management. Through an integrated team approach, Beacon offers a broad range of products and services including IT infrastructure design, implementation and management, application development and voice/data/security system integration, installation and maintenance. Beacon’s client roster includes state and local agencies, educational institutions, and over 4,000 companies ranging in size from mid-sized companies to the Fortune 500. Beacon is headquartered in Louisville, Ky., with regional headquarters in Dublin, Ireland and Zurich, Switzerland and personnel located throughout the United States and Europe.

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This press contains “forward-looking statements.” Expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements may include, without limitation, statements about our market opportunity, strategies, competition, expected activities and expenditures as we pursue our business plan. Although we believe that the expectations reflected in any forward looking statements are reasonable, we cannot predict the effect that market conditions, customer acceptance of products, regulatory issues, competitive factors, or other business circumstances and factors described in our filings with the Securities and Exchange Commission may have on our results. The company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.