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Exhibit A (Graphic: PowerSecure International, Inc.)

Stocks in this article: POWR

PowerSecure International, Inc. (Nasdaq: POWR) today reported its second quarter 2012 results, including strong second quarter revenues of $37.9 million, gross margin of 32.2 percent, diluted earnings per share (“E.P.S.”) from continuing operations of $0.09, and Non-GAAP E.P.S. from continuing operations of $0.03. This compares to second quarter 2011 revenues of $30.1 million, gross margin of 30.9%, diluted E.P.S. from continuing operations of $0.97, and Non-GAAP loss from continuing operations of ($0.03) per share. Non-GAAP per share amounts for both periods exclude income and gains related to the sale of the Company’s WaterSecure investment (see Non-GAAP discussion and reconciliation, below).

Sidney Hinton, CEO of PowerSecure, said, “We are having a terrific 2012. Each of our product and service areas is showing strong growth, driving our profit increases, and our backlog is a record $166 million. Additionally, our gross margins increased 3.4 percentage points sequentially, and 1.3 percentage points over last year. We are in great position for the second half of 2012 and 2013.” Mr. Hinton continued, “We continue to be very focused on translating our top-line success to bottom-line E.P.S. results, and leveraging the incremental operating expenses we have invested in to drive our business forward. I am pleased to report that in our second quarter our operating expenses decreased 2.5 percentage points as a percentage of revenue.”

Each of the Company’s product and service lines have grown significantly in size and scale over the last several quarters, driven by an expansion of its utility partners, a growing customer base, and a growing portfolio of product offerings and service capabilities. Exhibit A illustrates the increased scale achieved in each of the Company’s product and service lines, comparing trailing twelve month revenue for the period ended June 30, 2012, which totaled $147.3 million, to the period ended June 30, 2011, which totaled $100.8 million, a 46% increase.

Exhibit A

The Company’s strong second quarter 2012 year-over-year revenue growth of 26%, to $37.9 million, was driven by a 27% increase in Distributed Generation products and services, a 12% increase in Utility Infrastructure products and services, and a 51% increase in Energy Efficiency products, as shown below.

($ in 000's) 2Q12     2Q11     $     %
Revenue by Product/Service    
Distributed Generation 16,139 12,725 3,414 27%
Utility Infrastructure 12,912 11,510 1,402 12%
Energy Efficiency 8,816     5,851     2,965     51%
Total Revenue 37,867 30,086 7,781 26%

The Company’s second quarter 2012 gross margin as a percentage of revenue was 32.2% compared to 30.9% in the second quarter of 2011. The gross margin increase was driven by favorabilities in the mix of projects completed in 2012 compared to 2011, a higher percentage of revenues from the Company’s higher margin Distributed Generation and Energy Efficiency product areas, and higher revenues from the Company’s higher margin company-owned distributed generation recurring revenue projects.

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