Energy Services of America Corporation Commences Warrant Exchange Offer

Energy Services of America Corporation ESA announced today that the Company has commenced a warrant exchange offer and has provided warrant holders with an offer to purchase, a letter of transmittal and other documents containing details as to how they may participate in the exchange offer. The Company is offering to exchange all of the Company's outstanding warrants at a ratio of one share of its common stock for every 8 1/2 warrants tendered. The warrant exchange offer commenced on June 1, 2011, and will continue for a period of 20 business days from June 1, 2011. The exchange offer is scheduled to expire at 5:00 p.m. Eastern Time on June 29, 2011. In the event that a unit purchase option issued to the Company's underwriter at the time of the Company's initial public offering is exercised and the underlying warrants are tendered during the exchange offer period, the Company will issue one share of common stock for every 9 warrants tendered. The warrants, if exercised in accordance with their terms entitle the holders to purchase an aggregate of 21,176,923 shares of Company common stock. The warrants subject to the exchange offer are comprised of 17,200,000 warrants issued in connection with the Company's initial public offering, 3,076,923 warrants issued to certain insiders in a private placement at the time of the Company's initial public offering and 900,000 warrants issuable upon exercise of the Unit Purchase Option. Based upon an exchange ratio of 8 1/2 warrants for one share of common stock, the Company expects to issue up to 2,385,520 shares of common stock if all warrants are tendered in the exchange offer and up to 2,352,991 shares of common stock if all warrants are tendered in the exchange offer. At March 31, 2011, the Company had 12,092,307 shares of common stock outstanding.