Beacon Expects $1 Million Q4 Revenue Contribution from Exclusive Arrangement with DoD Contractor

Business Wire, July 17, 2009

$1 Million Expectation Based Upon Current RFP Activity in Relation to Previously Announced Multiple-Recipient Three-Year Contract Worth up to $500 Million

LOUISVILLE, Ky. & CINCINNATI & COLUMBUS, Ohio -- Beacon Enterprise Solutions Group, Inc. (OTCBB:BEAC), a global leader in the high performance provision of advanced IT solutions, today announces it expects to realize approximately $1 million in additional revenue in the fiscal fourth quarter ending September 30, 2009, due to an exclusive supplier arrangement with a DoD contractor.

As previously announced in May, 2009, this contract was awarded through the Space and Naval Warfare (“SPAWAR”) Systems Centers, which is the government agency responsible for the acquisition, integration, fielding and logistics support of network and communications systems for the DoD and Civil Federal Agencies throughout the government.

The total dollar value of the five-year contract is up to $500 million. Beacon Solutions is the exclusive supplier of IT products and services to one of the nine recipients for their portion of the government work. Beacon has already realized approximately $250,000 in revenue from this DoD contractor within the first few weeks of the contract. The Company anticipates that it will realize $1 million in additional revenue from the contractor in the fiscal fourth quarter ending September 30, 2009.

“Our exclusive supplier arrangement with one of the nine DoD contractors under this SPAWAR contract is already expected to make a sizable revenue contribution,” said Bruce Widener, CEO of Beacon Solutions. “Beacon is working diligently to assist with as much of the $500 million contract as possible, and we anticipate this relationship will lead to further government work in the future, well beyond the $1 million we expect to realize in the fourth quarter.”

Much of the IT infrastructure work relating to this contract consists of Layer 1 infrastructure products in addition to PBX, routers, switches, etc. Manufacturers include, but are not limited to, Cisco, Nortel, Juniper and Avaya. Award determinations may be made on a lowest price technically acceptable basis or a best value tradeoff basis where performance, delivery and cost comparisons are made. The Government may decide to split delivery order awards among offers to pick and choose the best price from the nine contractors’ proposals.

The SPAWAR System Centers support a wide variety of DoD and other Federal agencies based on respective mission requirements. Their primary mission is to enable knowledge superiority of specific government defense agencies through the development, acquisition and life cycle support of effective, integrated “C4ISR” (Command, Control, Communications, Computers, Intelligence, Surveillance, Reconnaissance), IT (Information Technology), and Space capabilities. As part of its mission, SPAWAR System Centers must also deliver “speed-to-capability” in support of DoD and the global war on terrorism.

Beacon Enterprise Solutions has jump-started aggressive initiatives and signed a string of new service agreements with some of the largest companies in the world. Beacon maintains a strong financial position and the Company aims to significantly grow its revenues in 2009 by expanding current client relationships and gaining new contracts over the coming weeks and months.

About Beacon Enterprise Solutions Group, Inc.

Beacon Enterprise Solutions Group is an emerging growth, high-performance provider of advanced IT solutions with a commitment to the proactive optimization of client companies’ operations. Beacon is capitalizing on opportunities created by the world-wide economic contraction through the provision of rapid deployment, broad spectrum, fully integrated IT programs with state-of-the-art, next-generation design, engineering, installation and managed services. Beacon’s business model creates a clearly defined early mover advantage due to our unique position as a leader in the provision of fully integrated turnkey 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 customers everything to make their communications run, from telecom infrastructure design, to software development, to voice/data/security system integration, system installation and maintenance, in addition to long distance, VoIP and Internet access service. 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. While Beacon services customers globally, it is headquartered in Louisville, Ky., with offices in Cincinnati and Columbus, Ohio; and dedicated personnel in Mangalore, India.