1317577--9/13/2010--Pike_Electric

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We derive a significant portion of our revenues from a small group of customers. The loss of or a significant decrease in services to one or more of these customers could negatively impact our business and results of operations Our customers often have no obligation to assign work to us, and many of our arrangements may be terminated on short notice. As a result, we are at risk of losing significant business on short notice Our industry is highly competitive and we may be unable to compete effectively, retain our customers or win new customers, which could result in reduced profitability and loss of market share. Our storm restoration services are highly volatile and unpredictable, which could result in substantial variations in, and uncertainties regarding, the levels of our financial results from period to period. We are subject to the risks associated with government construction projects. We may incur warranty costs that could adversely affect our profitability. We may incur liabilities or suffer negative financial or reputational impacts relating to occupational health and safety matters. Our business is subject to numerous hazards that could subject us to substantial monetary and other liabilities. If accidents occur, they could materially and adversely affect our business and results of operations Federal and state legislative and regulatory developments that we believe should encourage electric power transmission infrastructure spending may fail to result in increased demand for our services. Utilities focus on power generation may temporarily divert attention and capital away from maintenance projects we perform. Inability to perform our obligations under EPC and fixed-price contracts may adversely affect our business. Demand for some of our services is cyclical and vulnerable to industry and economic downturns, which could materially and adversely affect our business and results of operations. To be successful, we need to attract and retain qualified personnel, and any inability to do so would adversely affect our business . We are dependent on our senior management and other key personnel, the loss of which could have a material adverse effect on our business . Our unionized workforce could adversely affect our operations and our ability to complete future acquisitions. In addition, we contribute to multi-employer plans that could result in liabilities to us if these plans are terminated or we withdraw We require subcontractors to assist us in providing certain services and we may be unable to retain the necessary subcontractors to complete certain projects. Our current insurance coverage may not be adequate, and we may not be able to obtain insurance at acceptable rates, or at all. Fuel costs could materially and adversely affect our operating results A portion of our business depends on our ability to provide surety bonds or letters of credit and we may be unable to compete for or work on certain projects if we are not able to obtain the necessary surety bonds or letters of credit. We extend credit to customers for purchases of our services. In the past we have had, and in the future we may have, difficulty collecting receivables from customers that are subject to protection under bankruptcy or insolvency laws, are otherwise experiencing financial difficulties or dispute the amount owed to us Weather conditions can adversely affect our operations and The electric infrastructure servicing business is subject to seasonal variations, which may cause our operating results to vary significantly from period to period and could cause the market price of our stock to fall. Our financial results are based upon estimates and assumptions that may differ from actual results Failure to maintain effective internal control over financial reporting could have a material adverse effect on our business, operating results and stock price. We have incurred indebtedness under a senior credit facility, which may restrict our business and operations, and restrict our future access to sufficient funding to finance desired growth. We may be unsuccessful at acquiring companies or at integrating companies that we acquire, and as a result, we may not achieve the expected benefits and our profitability could materially suffer. During the ordinary course of our business, we may become subject to lawsuits or indemnity claims, which could materially and adversely affect our business and results of operations Our participation in partnerships or alliances exposes us to liability and/or harm to our reputation for failures of our partners. Our failure to comply with, or the imposition of liability under, environmental laws and regulations could result in significant costs. Our results of operations could be adversely affected as a result of the impairment of goodwill or other intangibles. Risks associated with operating in international markets could restrict our ability to expand globally and harm our business and prospects, and we could be adversely affected by our failure to comply with the laws applicable to our foreign activities, including the U.S. Foreign Corrupt Practices Act and other similar worldwide anti-bribery laws. The market price of our stock may be influenced by many factors, some of which are beyond our control. Shares eligible for future sale may cause the market price of our common stock to drop significantly, even if our business is doing well. The concentration of our capital stock will limit other stockholders ability to influence corporate matters Anti-takeover provisions of our charter and bylaws may reduce the likelihood of any potential change of control or unsolicited acquisition proposal that stockholders might consider favorable.

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1317577--9/13/2010--Pike_Electric_CORP