<SEC-DOCUMENT>0001003297-14-000066.txt : 20140203
<SEC-HEADER>0001003297-14-000066.hdr.sgml : 20140203
<ACCEPTANCE-DATETIME>20140203164522
ACCESSION NUMBER:		0001003297-14-000066
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20140203
ITEM INFORMATION:		Regulation FD Disclosure
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20140203
DATE AS OF CHANGE:		20140203

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INTEGRATED ELECTRICAL SERVICES INC
		CENTRAL INDEX KEY:			0001048268
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRICAL WORK [1731]
		IRS NUMBER:				760542208
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13783
		FILM NUMBER:		14568755

	BUSINESS ADDRESS:	
		STREET 1:		5433 WESTHEIMER
		STREET 2:		SUITE 500
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77056
		BUSINESS PHONE:		7138601500

	MAIL ADDRESS:	
		STREET 1:		5433 WESTHEIMER
		STREET 2:		SUITE 500
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77056
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>es8k103.htm
<TEXT>
<html>

<head>
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<title>Form 8-K</title>


</head>

<body lang=EN-US link=blue vlink=purple>

<div style='page:WordSection1;'>

<div style='border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 1.0pt 0in'>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify;border:none;padding:0in'><b>&nbsp;</b></p>

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'><b>&nbsp;</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
<b><font size="4">SECURITIES AND EXCHANGE COMMISSION</font></b></p>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
<font size="4">WASHINGTON, D.C.&nbsp; 20549</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'><b>&nbsp;</b></p>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
<font size="5">FORM&nbsp; 8-K</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center'><b>&nbsp;</b></p>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
<font size="4">Current Report</font></b></p>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
<font size="4">&nbsp;</font></b></p>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
<font size="4">Pursuant to Section 13 or 15(d) of the</font></b></p>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
<font size="4">&nbsp;</font></b></p>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
<font size="4">Securities Exchange Act of 1934</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>Date of Report (Date of earliest event reported): &nbsp;February 3, 2014</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
<font size="5">Integrated Electrical Services, Inc.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center'>(Exact name of registrant as specified in Charter)</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>

<table class=MsoNormalTable border=0 cellpadding=0
 style='border-collapse:collapse' width="100%">
 <tr>
  <td width=213 valign=top style='width:33%;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center'><b>Delaware</b></p>
  </td>
  <td width=213 valign=top style='width:34%;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center'><b><font style="font-size: 12.0pt">001-13783</font></b></p>
  </td>
  <td width=213 valign=top style='width:33%;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center'><b>76-0542208</b></p>
  </td>
 </tr>
 <tr>
  <td width=213 valign=top style='width:33%;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center'>(State or Other Jurisdiction</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center'>of Incorporation)</p>
  </td>
  <td width=213 valign=top style='width:34%;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center'>(Commission</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center'>File Number)</p>
  </td>
  <td width=213 valign=top style='width:33%;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center'>(I.R.S. Employer</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center'>Identification Number)</p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>5433 Westheimer Road, Suite 500, Houston, Texas 77056</b></p>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b>(Address of Principal Executive Offices)</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center'>
<font size="3">Registrant's telephone number, including area code:&nbsp; </font> <b><font style="font-size: 12.0pt">(713) 860-1500</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif"; margin-left:0in; margin-right:0in; margin-top:0in'>Check the appropriate box below if the Form 8-K filing
is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2. below):</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif"; margin-left:0in; margin-right:0in; margin-top:0in'>[ &nbsp;]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written communications pursuant to Rule 425
under the Securities Act (17 CFR 230.425)</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif"; margin-left:0in; margin-right:0in; margin-top:0in'>[ &nbsp;]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Soliciting material pursuant to Rule 14a-12
under the Exchange Act (17 CFR 240.14a-12)</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif";margin-left:31.5pt;text-indent:-31.5pt; margin-right:0in; margin-top:0in'>[ &nbsp;]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2 (b))</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";margin-left:31.5pt;text-indent:-31.5pt'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif";margin-left:31.5pt;text-indent:-31.5pt; margin-right:0in; margin-top:0in'>[ &nbsp;]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4 (c))</p>

<div style='border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 1.0pt 0in'>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center;border:none;
padding:0in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center;border:none;
padding:0in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center;border:none;
padding:0in'>&nbsp;</p>

</div>

<div align=center>

<p style="font-family: 'Times New Roman',serif; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
&nbsp;</p>
<p style="margin-bottom:.0001pt;font-size:12.0pt;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;;line-height:1.0pt; margin-right:0in; margin-top:0in">
&nbsp;</p>
<font face="Times New Roman,serif">
<p style="page-break-before:always">&nbsp;</p>
</font>
<p style="margin-bottom:.0001pt;font-size:12.0pt;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;;line-height:1.0pt; margin-right:0in; margin-top:0in">
&nbsp;</p>
<p style="margin-bottom:.0001pt;font-size:12.0pt;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;;line-height:1.0pt; margin-right:0in; margin-top:0in">
&nbsp;</p>
<p style="font-size: 12.0pt; font-family: 'Times New Roman',serif; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
&nbsp;</p>

<table class=MsoNormalTable border=0 cellpadding=0 width=624
 style='width:100%;border-collapse:collapse'>
 <tr>
  <td width="16%" valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>Item 7.01.</b></p>
  </td>
  <td width="4%" valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>
  </td>
  <td width="80%" valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>Regulation FD Disclosure.</b></p>
  </td>
 </tr>
 <tr style='height:6.5pt'>
  <td width="16%" valign=top style='height:6.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>
  </td>
  <td width="4%" valign=top style='height:6.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>
  </td>
  <td width="80%" valign=top style='height:6.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="16%" valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>
  </td>
  <td width="4%" valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>
  </td>
  <td width="80%" valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>On February 3, 2014, James M.
  Lindstrom, Chairman and Chief Executive Officer of Integrated Electrical
  Services, Inc. (the &#147;Company&#146;), posted a letter to the Company&#146;s stockholders
  in the &#147;Investors&#148; section of the Company&#146;s website,
	<font color="#0000FF">www.ies-corporate.com</font>, in advance
	of the Company's annual stockholders' meeting on February 4, 2014.&nbsp;
  A copy of the letter is being furnished herewith to provide broad disclosure.</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif"; margin-left:0in; margin-right:0in; margin-top:0in'>The
  letter referred to above contains &#147;forward-looking statements&#148; within the
  meaning of the Section 27A of the Securities Act of 1933, as amended, and
  Section 21E of the Exchange Act. Such forward-looking statements involve
  known and unknown risks, uncertainties and other factors which may cause the
  actual results, performance or achievements of the Company to be materially
  different from any future results, performance or achievements expressed or
  implied by such forward-looking statements. More detailed information about
  these factors is set forth in the letter referred to above under the heading
  &#147;Forward-Looking Statements.&#148; &nbsp;The Company is under no obligation to, and
  expressly disclaims any such obligation to, update or alter its
  forward-looking statements.</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";'>&nbsp;</p>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif"; margin-left:0in; margin-right:0in; margin-top:0in'>The
  information set forth herein is furnished pursuant to Item 7.01&#151;Regulation FD
  Disclosure and shall not be deemed &#147;filed&#148; for purposes of Section 18 of the
  Securities Exchange Act of 1934, as amended, or otherwise subject to the
  liabilities of such section nor shall the information be deemed incorporated
  by reference in any filing of the Company.</p>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>
  </td>
 </tr>
</table>

</div>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif";margin-left:1.0in;text-align:justify;text-indent:
-1.0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>

<div align=center>

<table class=MsoNormalTable border=0 cellpadding=0 width=624
 style='width:100%;border-collapse:collapse'>
 <tr>
  <td width="16%" valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>Item 9.01.</b></p>
  </td>
  <td width="4%" valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>
  </td>
  <td width="80%" valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>Financial Statements and
  Exhibits.</b></p>
  </td>
 </tr>
 <tr style='height:6.5pt'>
  <td width="16%" valign=top style='height:6.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>
  </td>
  <td width="4%" valign=top style='height:6.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>
  </td>
  <td width="80%" valign=top style='height:6.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>
  </td>
 </tr>
 <tr>
  <td width="16%" valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>
  </td>
  <td width="4%" valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>
  </td>
  <td width="80%" valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>(d)&nbsp; Exhibits</p>
  </td>
 </tr>
 <tr style='height:6.5pt'>
  <td width="16%" valign=top style='height:6.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>
  </td>
  <td width="4%" valign=top style='height:6.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>
  </td>
  <td width="80%" valign=top style='height:6.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>
  </td>
 </tr>
 <tr>
  <td width="16%" valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>Exhibit No.</b></p>
  </td>
  <td width="4%" valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>
  </td>
  <td width="80%" valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>Description</b></p>
  </td>
 </tr>
 <tr style='height:6.5pt'>
  <td width="16%" valign=top style='border:medium none;height:6.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center'>&nbsp;</p>
  </td>
  <td width="4%" valign=top style='height:6.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>
  </td>
  <td width="80%" valign=top style='border:medium none;height:6.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:26.95pt'>
  <td width="16%" valign=top style='height:26.95pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>99.1</p>
  </td>
  <td width="4%" valign=top style='height:26.95pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>
  </td>
  <td width="80%" valign=top style='height:26.95pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif"; margin-left:0in; margin-right:0in; margin-top:0in'>Letter
  to Stockholders, dated February 3, 2014, by James M. Lindstrom, Chairman and
  Chief Executive Officer of the Company.<b> </b></p>
  </td>
 </tr>
</table>

</div>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif";margin-left:1.0in;text-align:justify;text-indent:
-1.0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>

<hr>

<p style="font-family: 'Times New Roman',serif; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
&nbsp;</p>
<div style="margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;;text-align:center">
&nbsp;</div>
<p style="margin-bottom:.0001pt;font-size:12.0pt;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;;line-height:1.0pt; margin-right:0in; margin-top:0in">
&nbsp;</p>
<font face="Times New Roman,serif">
<p style="page-break-before:always">&nbsp;</p>
</font>
<p style="margin-bottom:.0001pt;font-size:12.0pt;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;;line-height:1.0pt; margin-right:0in; margin-top:0in">
&nbsp;</p>
<p style="margin-bottom:.0001pt;font-size:12.0pt;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;;line-height:1.0pt; margin-right:0in; margin-top:0in">
&nbsp;</p>
<p style="font-size: 12.0pt; font-family: 'Times New Roman',serif; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
&nbsp;</p>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>SIGNATURES</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify;text-indent:.5in; margin-left:0in; margin-right:0in; margin-top:0in'>Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>

<table class=MsoNormalTable border=0 cellpadding=0
 style='border-collapse:collapse' width="100%">
 <tr>
  <td width=301 valign=top style='width:50%;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>
  </td>
  <td width=330 valign=top style='width:50%;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>INTEGRATED ELECTRICAL SERVICES, INC.</b></p>
  </td>
 </tr>
 <tr style='height:29.25pt'>
  <td width=301 valign=bottom style='width:50%;height:29.25pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif"; margin-left:0in; margin-right:0in; margin-top:0in'>Date:&nbsp;
  February
  3, 2014</p>
  </td>
  <td width=330 valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; width:50%;border-bottom:
  1.0pt solid windowtext;height:29.25pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif"; margin-left:0in; margin-right:0in; margin-top:0in'><i>/s/
  Gail D. Makode</i></p>
  </td>
 </tr>
 <tr>
  <td width=301 valign=top style='width:50%;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>
  </td>
  <td width=330 valign=top style='width:50%;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>Gail D. Makode</p>
  </td>
 </tr>
 <tr>
  <td width=301 valign=top style='width:50%;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>
  </td>
  <td width=330 valign=top style='width:50%;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>Senior Vice President and General
  Counsel</p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>

</div>

<hr>

<p style="font-family: 'Times New Roman',serif; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
&nbsp;</p>
<p style="margin-bottom:.0001pt;font-size:12.0pt;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;;line-height:1.0pt; margin-right:0in; margin-top:0in">
&nbsp;</p>
<font face="Times New Roman,serif">
<p style="page-break-before:always">&nbsp;</p>
</font>
<p style="margin-bottom:.0001pt;font-size:12.0pt;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;;line-height:1.0pt; margin-right:0in; margin-top:0in">
&nbsp;</p>
<p style="margin-bottom:.0001pt;font-size:12.0pt;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;;line-height:1.0pt; margin-right:0in; margin-top:0in">
&nbsp;</p>
<p style="font-size: 12.0pt; font-family: 'Times New Roman',serif; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
&nbsp;</p>
&nbsp;<div style='page:WordSection2;'>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif"; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>

<p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>EXHIBIT INDEX</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>

<div align=center>

<table class=MsoNormalTable border=0 cellpadding=0 width=624
 style='width:100%;border-collapse:collapse'>
 <tr>
  <td width=102 style='border-left:medium none; border-right:medium none; border-top:medium none; width:16%;border-bottom:1.0pt solid windowtext;
  padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Exhibit No.</b></p>
  </td>
  <td width=18 valign=top style='width:4%;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>
  </td>
  <td width=504 valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:80%;border-bottom:1.0pt solid windowtext;
  padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>Description</b></p>
  </td>
 </tr>
 <tr style='height:6.5pt'>
  <td width=102 valign=top style='width:16%;border:medium none;height:6.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:center'>&nbsp;</p>
  </td>
  <td width=18 valign=top style='width:4%;height:6.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>
  </td>
  <td width=504 valign=top style='width:80%;border:medium none;height:6.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:26.95pt'>
  <td width=102 valign=top style='width:16%;height:26.95pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>99.1</p>
  </td>
  <td width=18 valign=top style='width:4%;height:26.95pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif";text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>
  </td>
  <td width=504 valign=top style='width:80%;height:26.95pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"CG Times","serif"; margin-left:0in; margin-right:0in; margin-top:0in'>Letter
  to Stockholders, dated February 3, 2014, by James M. Lindstrom, Chairman and
  Chief Executive Officer of the Company.<b> </b></p>
  </td>
 </tr>
</table>

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>

<hr>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>

<p style="font-family: 'Times New Roman',serif; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
&nbsp;</p>
<div style="margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;;text-align:center">
&nbsp;</div>
<p style="margin-bottom:.0001pt;font-size:12.0pt;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;;line-height:1.0pt; margin-right:0in; margin-top:0in">
&nbsp;</p>
<font face="Times New Roman,serif">
<p style="page-break-before:always">&nbsp;</p>
</font>
<p style="margin-bottom:.0001pt;font-size:12.0pt;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;;line-height:1.0pt; margin-right:0in; margin-top:0in">
&nbsp;</p>
<p style="margin-bottom:.0001pt;font-size:12.0pt;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;;line-height:1.0pt; margin-right:0in; margin-top:0in">
&nbsp;</p>
<p style="font-size: 12.0pt; font-family: 'Times New Roman',serif; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
&nbsp;</p>
&nbsp;<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman","serif";margin:0in;margin-bottom:.0001pt;text-align:right'><b>Exhibit 99.1</b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman","serif";margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman","serif";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman","serif";margin:0in;margin-bottom:.0001pt;text-align:center'><b>&nbsp;</b></p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman","serif";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Letter to Stockholders</b></p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman","serif";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman","serif";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>James M. Lindstrom</p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman","serif";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>Chairman and Chief Executive Officer</p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman","serif";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>February 3, 2014</p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman","serif";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman","serif";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman","serif";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman","serif";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman","serif";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman","serif";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman","serif";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman","serif";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman","serif";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

</div>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>es99-1.htm
<TEXT>
<html>

<head>
<!-- Document Prepared With EDGARSTAR Software-->
<!-- Copyright 2007 EDGARSTAR TRADEMARK-->
<!-- All rights reserved EDGAR2.com -->



<title>Exhibit 99.1</title>


</head>

<body lang=EN-US>

<div style='page:WordSection1;'>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'><b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%' align="right">
<b>Exhibit 99.1</b></p>

<b><font size="4">Integrated Electrical Services, Inc.</font></b><p><b>
<font size="4">Letter to Shareholders </font> </b></p>
</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>February 3, 2014</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>Dear Fellow Shareholders:</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>I am pleased to report that we made substantial progress in
2013 toward delivering superior long-term returns to shareholders.&nbsp; We improved
the financial performance at the IES operating divisions and continued to
pursue strategic acquisitions to help accelerate the use of IES&#146;s net operating
loss carry-forwards (NOLs).&nbsp; We completed our first such acquisition, and we
saw improved underlying performance and profitability in our divisions.&nbsp; </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>The year was far from perfect.&nbsp; We had a net loss from
continuing operations of $2.2 million, which included a $1.3 million reserve
against a receivable due from a surety, and $3.0 million of acquisition costs.&nbsp;
However, despite this GAAP net loss, we believe our focus &#150; yours and mine &#150; on
building intrinsic value will enable us to continue taking the appropriate
steps toward accomplishing our ambitious goals for your company.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'><b>Building On a Foundation for Sustained Growth</b></p>

<p align="left" style="line-height: 150%">Our 2013 achievements are part of a multi-year strategy
to reposition and grow IES that started in late 2011.&nbsp; Before discussing them, I
believe it is worth looking back to present a clear vision of where we are
headed.&nbsp; We experienced a series of devastating losses dating to 2008, and by
mid-2011 our stock price had dropped below $2 per share.&nbsp; The need to stem our
operating and cash losses and swing to profitability was about as urgent as it
gets.&nbsp; We had to move quickly, and I am proud to say that our people were up to
the challenge.&nbsp; Over the subsequent two years we committed to reinvesting in
IES and to building a stronger electrical-infrastructure service company.&nbsp; We made
strategic changes not only to survive in a difficult environment, but also to build
a foundation that ultimately would enable us to wring value out of the NOLs &#150;
primarily by acquiring profitable businesses whose management philosophy and
culture were consistent with ours.&nbsp; This was and still is integral to our
growth strategy.&nbsp; </p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&#8209;1&#8209;</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">
<p style="page-break-before:always">&nbsp;</p>
</font>
&nbsp;<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>Our 2011 and 2012 transformational actions focused on
four key areas:</p>

<ol>
	<li>
	<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
line-height:150%'><b>Strategy.&nbsp; </b>We
focused our limited resources on growth in our best markets and support for our
strongest leadership teams.&nbsp; We heightened our sensitivity to risk and to
returns on capital when choosing projects and operations to which we would commit
resources.&nbsp; We moved resources closer to our end markets &#150; closer to where they
were needed most and where they would provide the greatest leverage.</p></li>
	<li>
	<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
line-height:150%'><b>Governance.&nbsp; </b>We
implemented incentive plans that tie compensation to results that are under
managers&#146; control and that drive shareholder value.&nbsp; We moved toward a
decentralized environment where managers were clearly accountable for their
actions but where rewards could be significant for superior performance.&nbsp; In
light of this decentralization, we also implemented improved data analysis,
benchmarking, reporting metrics and risk controls.&nbsp; </p></li>
	<li>
	<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
line-height:150%'><b>Operations.&nbsp; </b>We
implemented stringent cost-reduction measures and controls.&nbsp; We reinvested in
areas such as training and employee benefits to ensure that we attracted and
retained the best talent in our industries.&nbsp; We enhanced the quality of our
revenue, earnings and balance sheet through more service offerings &#150; and more
consistent revenue streams &#150; and by reducing our exposure to anything but the
best construction opportunities.&nbsp; </p></li>
	<li>
	<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
line-height:150%'><b>Capital.&nbsp; </b>We
reduced our working-capital requirements by improving our asset use and cash-conversion
cycle.&nbsp; We also refinanced our senior credit arrangement and eliminated our
subordinated debt, resulting in more favorable terms.&nbsp; </p></li>
</ol>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>With these actions taken, and with invaluable
contributions from key leaders and employees throughout our company, we emerged
from this ominous period a very different &#150; and more robust &#150; company.&nbsp; You can
see this in the turnaround in revenues, cash flow and losses over the past three
years:&nbsp; </p>

<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;&#8209;2&#8209;</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">
<p style="page-break-before:always">&nbsp;</p>
</font>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>&nbsp;</p>

<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0
 style='margin-left:22.85pt;border-collapse:collapse;border:none' width="90%">
 <tr style='height:23.35pt'>
  <td valign=top style='border-left:1.0pt solid white; border-right:1.0pt solid white; border-top:1.0pt solid white; border-bottom:3.0pt solid white; background:#205372; height:23.35pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:150%'>
	<font color="#FFFFFF"><b><i>(dollars in millions)</i></b></font></p>
  </td>
  <td valign=top style='border-top:1.0pt solid white;
  border-left:medium none;border-bottom:3.0pt solid white;border-right:1.0pt solid white;
  background:#244F76;height:23.35pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>
	<font color="#FFFFFF"><b>2009</b></font></p>
  </td>
  <td valign=top style='border-top:1.0pt solid white;
  border-left:medium none;border-bottom:3.0pt solid white;border-right:1.0pt solid white;
  background:#244F76;height:23.35pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>
	<font color="#FFFFFF"><b>2010</b></font></p>
  </td>
  <td valign=top style='border-top:1.0pt solid white;
  border-left:medium none;border-bottom:3.0pt solid white;border-right:1.0pt solid white;
  background:#244F76;height:23.35pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>
	<font color="#FFFFFF"><b>2011</b></font></p>
  </td>
  <td valign=top style='border-top:1.0pt solid white;
  border-left:medium none;border-bottom:3.0pt solid white;border-right:1.0pt solid white;
  background:#244F76;height:23.35pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>
	<font color="#FFFFFF"><b>2012</b></font></p>
  </td>
  <td valign=top style='border-top:1.0pt solid white;
  border-left:medium none;border-bottom:3.0pt solid white;border-right:1.0pt solid white;
  background:#244F76;height:23.35pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>
	<font color="#FFFFFF"><b>2013</b></font></p>
  </td>
 </tr>
 <tr style='height:26.5pt'>
  <td valign=top style='border-top:medium none;border-left:
  1.0pt solid white;border-bottom:medium none;border-right:3.0pt solid white;
  background:#205372;height:26.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>
	<font color="#FFFFFF"><b>Revenues</b></font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>
	<font color="#FFFFFF"><b>&nbsp;</b></font></p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #A7BFDE;height:26.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>$516.1</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #A7BFDE;height:26.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>$382.4</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #A7BFDE;height:26.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>$406.1</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #A7BFDE;height:26.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>$456.1</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #A7BFDE;height:26.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>$494.6</p>
  </td>
 </tr>
 <tr style='height:36.85pt'>
  <td valign=top style='border-top:1.0pt solid white;
  border-left:1.0pt solid white;border-bottom:medium none;border-right:3.0pt solid white;
  background:#205372;height:36.85pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>
	<font color="#FFFFFF"><b>Income (Loss) from Operations</b></font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>
	<font color="#FFFFFF"><b>&nbsp;</b></font></p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #D3DFEE;height:36.85pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>(9.2)</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #D3DFEE;height:36.85pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>(19.4)</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #D3DFEE;height:36.85pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>(17.2)</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #D3DFEE;height:36.85pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>(0.4)</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #D3DFEE;height:36.85pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>0.4</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='border-top:1.0pt solid white;
  border-left:1.0pt solid white;border-bottom:medium none;border-right:3.0pt solid white;
  background:#205372;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>
	<font color="#FFFFFF"><b>Net Income (Loss) from Continuing Operations</b></font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>
	<font color="#FFFFFF"><b>&nbsp;</b></font></p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #A7BFDE;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>(15.6)</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #A7BFDE;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>(22.6)</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #A7BFDE;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>(19.6)</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #A7BFDE;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>(2.7)</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #A7BFDE;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>(2.2)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='border-left:1.0pt solid white; border-top:1.0pt solid white; border-bottom:1.0pt solid white; border-right:3.0pt solid white; background:#244F76; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>
	<font color="#FFFFFF"><b>Net Cash Provided by (Used in) Operating Activities</b></font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>
	<font color="#FFFFFF"><b>&nbsp;</b></font></p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #D3DFEE;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>9.7</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #D3DFEE;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>(13.2)</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #D3DFEE;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>(11.9)</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #D3DFEE;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>(7.4)</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #D3DFEE;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>2.0</p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>We learned our fair share of lessons along the way.&nbsp; For
example, during an early stage of our transformation in late 2011, one of our
division&#146;s commercial branches had high hopes for growth and in a short time
increased its backlog of large, long-duration projects.&nbsp; As the projects closed
over the past 12 months, harsh reality tempered that early optimism.&nbsp; Various
operational issues led to project delays, and we incurred $2.1 million of
additional costs in 2013 on just four of this branch&#146;s large projects.&nbsp; This
was a costly &#150; but in the end valuable &#150; lesson that only reinforced our need
for discipline in a historically low-margin environment.&nbsp; The experience also
confirmed our view that stable, high-performing managers, who have reliable
relationships and intimate knowledge within their markets, are a key element of
our strategy and will yield the biggest benefit for all stakeholders.&nbsp; </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'><b>2013 Performance: The Rewards of a Disciplined Approach </b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>In 2013 our successes were greater and our missteps
smaller than in any recent year.&nbsp; Our improvement has been valuable, and our
share price reflects that.&nbsp; It recovered from a low of $1.88 on September 22,
2011 to reach $5.39 on December 31, 2013.&nbsp; </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>Here are a few of the year&#146;s highlights:</p>

<ul>
	<li>
	<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
line-height:150%'>We acquired MISCOR Group, Ltd. (MISCOR), which adds a
profit stream unrelated to the historically cyclical construction industry, offers
further margin improvement with low capital requirements and expands our future
acquisition capacity by improving our financial profile.</p></li>
</ul>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:7.0pt;line-height:5.0pt'><font style="font-size: 5.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>

<p align="center">&#8209;3&#8209;</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">
<p style="page-break-before:always">&nbsp;</p>
</font>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:1.0pt'>&nbsp;</p>

<ul>
	<li>
	<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
line-height:150%'>Adjusted EBITDA increased 84 percent to $8.0 million.&nbsp; While
we are generally skeptical of adjusted EBITDA as a meaningful tool to evaluate
our investments, this non-GAAP metric provides insight into our divisions&#146;
performance and excludes corporate costs related to new acquisitions and
unrelated legacy items.&nbsp; A reconciliation of this measure to GAAP net income (loss)
from continuing operations is included in our year-end press release.</p></li>
	<li>
	<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
line-height:150%'>We fully retired our $10 million senior subordinated notes
with proceeds from a new term loan from Wells Fargo bank, an important partner.&nbsp;
We also received increased commitments throughout the year from Wells Fargo that
improved our financial capabilities.&nbsp; </p></li>
	<li>
	<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
line-height:150%'>We entered into new and expanded surety facilities with AIG and Suremerica as a further testament to our disciplined approach to the
construction market.</p></li>
</ul>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'><i>IES Communications</i></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>Our IES Communications division, under the leadership of
Don Fishstein since 1996, increased operating income 111 percent to $10.2
million through improved project execution and increased activity from Fortune
100 customers.&nbsp; This division continued to offer new services in a rapidly and
constantly changing market in which customers&#146; margin for error is virtually
zero.&nbsp; In addition, the division required an incredibly small commitment of IES
capital.&nbsp; We do not disclose our divisions&#146; net tangible assets, but you can
see in the capital-efficiency table below that Don and his team have generated
enormous profitability with a modest amount of capital.</p>

<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0
 style='margin-left:79.1pt;border-collapse:collapse;border:none' width="75%">
 <tr style='height:23.35pt'>
  <td valign=top style='border-left:1.0pt solid white; border-right:1.0pt solid white; border-top:1.0pt solid white; border-bottom:3.0pt solid white; background:#244F76; height:23.35pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:150%'>
	<font color="#FFFFFF"><b><i>(dollars in millions)</i></b></font></p>
  </td>
  <td valign=top style='border-top:1.0pt solid white;
  border-left:medium none;border-bottom:3.0pt solid white;border-right:1.0pt solid white;
  background:#244F76;height:23.35pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>
	<font color="#FFFFFF"><b>2011</b></font></p>
  </td>
  <td valign=top style='border-top:1.0pt solid white;
  border-left:medium none;border-bottom:3.0pt solid white;border-right:1.0pt solid white;
  background:#244F76;height:23.35pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>
	<font color="#FFFFFF"><b>2012</b></font></p>
  </td>
  <td valign=top style='border-top:1.0pt solid white;
  border-left:medium none;border-bottom:3.0pt solid white;border-right:1.0pt solid white;
  background:#244F76;height:23.35pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>
	<font color="#FFFFFF"><b>2013</b></font></p>
  </td>
 </tr>
 <tr style='height:26.5pt'>
  <td valign=top style='border-top:medium none;border-left:
  1.0pt solid white;border-bottom:medium none;border-right:3.0pt solid white;
  background:#244F76;height:26.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>
	<font color="#FFFFFF"><b>Operating Income</b></font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>
	<font color="#FFFFFF"><b>&nbsp;</b></font></p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #A7BFDE;height:26.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>$2.8</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #A7BFDE;height:26.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>$4.8</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #A7BFDE;height:26.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>$10.2</p>
  </td>
 </tr>
 <tr style='height:36.85pt'>
  <td valign=top style='border-left:1.0pt solid white; border-top:1.0pt solid white; border-bottom:1.0pt solid white; border-right:3.0pt solid white; background:#244F76; height:36.85pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>
	<font color="#FFFFFF"><b>Total Assets</b></font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>
	<font color="#FFFFFF"><b>&nbsp;</b></font></p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #D3DFEE;height:36.85pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>23.1</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #D3DFEE;height:36.85pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>29.6</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #D3DFEE;height:36.85pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>24.9</p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:7.0pt;line-height:5.0pt'><font style="font-size: 5.0pt">&nbsp;</font></p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:justify; line-height:150%; margin-left:0in; margin-right:0in; margin-top:0in'>We owe a lot of thanks to the IES Communications team for
their continued performance and service on several mission-critical projects
for Fortune 100 corporations.&nbsp; Many of these corporations have been repeat
customers for several years &#150; tangible evidence of our commitment to sustaining
our relationships.&nbsp;&nbsp; &nbsp;&nbsp;</p>

<p align="center">&#8209;4&#8209;</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">
<p style="page-break-before:always">&nbsp;</p>
</font>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>
<i>IES Commercial &amp; Industrial</i></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>Our IES Commercial &amp; Industrial division, under Tom
Santoni&#146;s leadership since late 2011, experienced a solid year in many of its
locations.&nbsp; Unfortunately, this success was offset by higher projected costs of
$3.0 million incurred on a large legacy project that started in 2009.&nbsp; While
Commercial &amp; Industrial has improved its performance dramatically in a
difficult environment, this level of profitability leaves us unsatisfied with current
operating results.&nbsp; </p>

<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0
 style='margin-left:79.1pt;border-collapse:collapse;border:none' width="75%">
 <tr style='height:23.35pt'>
  <td valign=top style='border-left:1.0pt solid white; border-right:1.0pt solid white; border-top:1.0pt solid white; border-bottom:3.0pt solid white; background:#244F76; height:23.35pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:150%'>
	<font color="#FFFFFF"><b><i>(dollars in millions)</i></b></font></p>
  </td>
  <td valign=top style='border-top:1.0pt solid white;
  border-left:medium none;border-bottom:3.0pt solid white;border-right:1.0pt solid white;
  background:#244F76;height:23.35pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>
	<font color="#FFFFFF"><b>2011</b></font></p>
  </td>
  <td valign=top style='border-top:1.0pt solid white;
  border-left:medium none;border-bottom:3.0pt solid white;border-right:1.0pt solid white;
  background:#244F76;height:23.35pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>
	<font color="#FFFFFF"><b>2012</b></font></p>
  </td>
  <td valign=top style='border-top:1.0pt solid white;
  border-left:medium none;border-bottom:3.0pt solid white;border-right:1.0pt solid white;
  background:#244F76;height:23.35pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>
	<font color="#FFFFFF"><b>2013</b></font></p>
  </td>
 </tr>
 <tr style='height:26.5pt'>
  <td valign=top style='border-top:medium none;border-left:
  1.0pt solid white;border-bottom:medium none;border-right:3.0pt solid white;
  background:#244F76;height:26.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>
	<font color="#FFFFFF"><b>Operating Income</b></font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>
	<font color="#FFFFFF"><b>&nbsp;</b></font></p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #A7BFDE;height:26.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>$(8.6)</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #A7BFDE;height:26.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>$2.1</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #A7BFDE;height:26.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>$1.2</p>
  </td>
 </tr>
 <tr style='height:36.85pt'>
  <td valign=top style='border-left:1.0pt solid white; border-top:1.0pt solid white; border-bottom:1.0pt solid white; border-right:3.0pt solid white; background:#244F76; height:36.85pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>
	<font color="#FFFFFF"><b>Total Assets</b></font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>
	<font color="#FFFFFF"><b>&nbsp;</b></font></p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #D3DFEE;height:36.85pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>79.5</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #D3DFEE;height:36.85pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>65.9</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #D3DFEE;height:36.85pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>55.3</p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>Even with this setback, Tom and his team are doing a
great job managing the remaining stages of the legacy project.&nbsp; They are maintaining
effective cost controls, developing new analytical abilities and staying
disciplined in an undisciplined competitive environment.&nbsp; They are also striving
to build recurring revenues.&nbsp; Unfortunately, improving his customers&#146; economic
environment and ensuring that competitors exercise the same degree of discipline
are beyond Tom&#146;s &#150; or anyone&#146;s &#150; control.&nbsp; These factors make for a difficult
environment.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>While we intend to continue growing IES Commercial &amp;
Industrial despite the construction industry&#146;s inherent risks, we will focus on
higher-quality construction work and rely less on the types of long-duration &#150;
and higher-risk &#150; construction projects that cut into our 2013 income.&nbsp; </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'><i>IES Residential </i></p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:justify; line-height:150%; margin-left:0in; margin-right:0in; margin-top:0in'>Our IES Residential division, led by Dwayne Collier since
2011, provides electrical installation services to major builders of
single-family-home developments and multi-family complexes.&nbsp; The division had
strong revenue growth and modest margin expansion in both segments.&nbsp; </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>

<p align="center">&#8209;5&#8209;</p>
<p>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">
<p style="page-break-before:always">&nbsp;</p>
</font>
&nbsp;<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:1.0pt'>&nbsp;</p>

<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0
 style='margin-left:79.1pt;border-collapse:collapse;border:none' width="75%">
 <tr style='height:23.35pt'>
  <td valign=top style='border-left:1.0pt solid white; border-right:1.0pt solid white; border-top:1.0pt solid white; border-bottom:3.0pt solid white; background:#244F76; height:23.35pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:150%'>
	<font color="#FFFFFF"><b><i>(dollars in millions)</i></b></font></p>
  </td>
  <td valign=top style='border-top:1.0pt solid white;
  border-left:medium none;border-bottom:3.0pt solid white;border-right:1.0pt solid white;
  background:#244F76;height:23.35pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>
	<font color="#FFFFFF"><b>2011</b></font></p>
  </td>
  <td valign=top style='border-top:1.0pt solid white;
  border-left:medium none;border-bottom:3.0pt solid white;border-right:1.0pt solid white;
  background:#244F76;height:23.35pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>
	<font color="#FFFFFF"><b>2012</b></font></p>
  </td>
  <td valign=top style='border-top:1.0pt solid white;
  border-left:medium none;border-bottom:3.0pt solid white;border-right:1.0pt solid white;
  background:#244F76;height:23.35pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>
	<font color="#FFFFFF"><b>2013</b></font></p>
  </td>
 </tr>
 <tr style='height:26.5pt'>
  <td valign=top style='border-top:medium none;border-left:
  1.0pt solid white;border-bottom:medium none;border-right:3.0pt solid white;
  background:#244F76;height:26.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>
	<font color="#FFFFFF"><b>Operating Income</b></font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>
	<font color="#FFFFFF"><b>&nbsp;</b></font></p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #A7BFDE;height:26.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>$0.1</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #A7BFDE;height:26.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>$1.0</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #A7BFDE;height:26.5pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>$1.8</p>
  </td>
 </tr>
 <tr style='height:36.85pt'>
  <td valign=top style='border-left:1.0pt solid white; border-top:1.0pt solid white; border-bottom:1.0pt solid white; border-right:3.0pt solid white; background:#244F76; height:36.85pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>
	<font color="#FFFFFF"><b>Total Assets</b></font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>
	<font color="#FFFFFF"><b>&nbsp;</b></font></p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #D3DFEE;height:36.85pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>23.6</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #D3DFEE;height:36.85pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>33.9</p>
  </td>
  <td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid white;border-right:1.0pt solid white;background:
  #D3DFEE;height:36.85pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:center;line-height:150%'>36.8</p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>Margins were tempered by costs associated with our expansion
into the California solar market in late 2012 and early 2013, efforts that we scaled
back significantly in late 2013.&nbsp; We expect strong returns on net assets and continued
growth from our Residential division in 2014 as its markets continue to
improve.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'><b>Seeking a Prudent Balance</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>As I mentioned earlier, we owe a great deal to our
division leaders and employees for our emergence from a difficult period.&nbsp; I
would like to thank them for their contributions in 2013, another year of
highly competitive markets and historically weak margins.&nbsp; We believe we will
continue to emerge from these difficult conditions.&nbsp; </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>There are times when you should be more aggressive when
bidding on construction projects and times when patience and discipline should
prevail.&nbsp; Unfortunately, many construction players rush to bid jobs when they are
emerging from a prolonged difficult environment.&nbsp; This eagerness, particularly
in the early stage of a recovery, can leave one exposed to increasing labor and
material costs, also typical of a recovery.&nbsp; Over the last year, input costs
have increased, and we do not see this changing, particularly in the labor market.&nbsp;
U.S. construction unemployment has decreased from 20.6 percent in 2010 to 11.3
percent in 2013.&nbsp; We have seen pricing start to reflect these changes in
certain markets and are optimistic about the rest of our markets. &nbsp;But now it
is more important than ever to remain disciplined in our bidding practices even
as margins creep back to their historical norms.&nbsp; </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:7.0pt;line-height:5.0pt'><font style="font-size: 5.0pt">&nbsp;</font></p>
<p align="center">&#8209;6&#8209;</p>

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</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">
<p style="page-break-before:always">&nbsp;</p>
</font>
&nbsp;<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>This does not mean we are sitting on our hands waiting
for the market to come back.&nbsp; Instead, we are offering new services, expanding
into new geographies and concentrating on the best quality construction
projects.&nbsp; Regarding fixed-price contracts with longer durations, we are ready
to become more aggressive about increasing these volumes when pricing reflects
risks incurred.&nbsp; </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'><b>2013 Strategic Activity</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>We acquired MISCOR in 2013 &#150; a transformational event for
IES in many ways.&nbsp; First, MISCOR adds a profit stream unrelated to the
historically cyclical construction industry.&nbsp; Second, MISCOR offers further
margin improvement with low capital requirements.&nbsp; Both factors increase the
potential for above-average returns on our invested capital.&nbsp; Finally, the merger
expands our future acquisition capacity by improving our financial profile.&nbsp; The
support of our bank and sureties, solid governance practices at the board
level, and the endorsement from an overwhelming percentage of our shareholders
&#150; along with our improving financials &#150; made the MISCOR acquisition possible.&nbsp; We
are grateful for this vote of confidence.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>While the acquisition pipeline is still robust, we remain
selective about those investments we choose to pursue.&nbsp; We look for businesses
that meet our fundamental investment criteria and whose valuations are
justified by fundamentals.&nbsp; Our most promising candidates are typically solid
businesses with good returns on capital that will benefit from our NOLs.&nbsp; Owners
and management teams who appreciate IES&#146;s sense of partnership, empowerment
with accountability, a long-term perspective, an internal drive for continuous
improvement, and the growth of fundamentals-based intrinsic value would likely
fit with IES&#146;s culture.&nbsp; </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'><b>Future Actions to Generate Higher Returns</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>We expect to continue growing in a controlled and
risk-focused manner.&nbsp; Though our profits to date have been modest, we are
confident that the continuation of the following strategies will enable us to
attain our long-term goal of generating superior returns for our shareholders:&nbsp;
</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:7.0pt;line-height:5.0pt'><font style="font-size: 5.0pt">&nbsp;</font></p>
<p align="center">&nbsp;&#8209;7&#8209;</p>

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</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">
<p style="page-break-before:always">&nbsp;</p>
</font>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:1.0pt'>&nbsp;</p>

<ul>
	<li>
	<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
line-height:150%'>As I mentioned previously, some of our current divisions are
still exposed to risks inherent in the construction market.&nbsp; We expect industry
bidding dynamics to improve and in the meantime are focusing on enhancing
recurring revenues and returns on capital.</p></li>
	<li>
	<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
line-height:150%'>We seek to increase the value of our businesses by
focusing on appropriate governance procedures, continuously improving our
operations and generating superior returns on capital.&nbsp; &nbsp;&nbsp;</p>
	</li>
	<li>
	<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
line-height:150%'>Finally, we remain focused on maximizing the value of our NOLs.&nbsp; We will continue to pursue sizeable acquisitions that meet our criteria
of superior returns on capital, an established market position, sustainable
competitive advantages, proven management with a willingness to continue post-transaction
and, ideally, reinvestment opportunities.&nbsp; IES offers a great platform for the
right partner who is not just looking to monetize his or her ownership, but who
wants to find a permanent home for the company.&nbsp; </p></li>
</ul>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>Simply providing capital does not give us a competitive advantage
in today&#146;s marketplace.&nbsp; We will likely not offer the highest cash price to
sellers in this environment, where there is ample access to leverage and
capital.&nbsp; However, unlike the majority of financial partners, we do not have a
fixed investment time horizon and do not face pressure to sell our investments
within a given time period.&nbsp; We also offer significant autonomy to the right
management teams.&nbsp; Most significantly, we can offer our partners the benefits of
our sizeable NOLs.&nbsp; </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-bottom:12.0pt;line-height:150%'>We wish to thank our shareholders for their acquisition
ideas to date.&nbsp; We welcome any referrals that adhere to our investment criteria.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:150%'>I look
forward to updating you on our progress throughout the year.&nbsp; On behalf of the
entire Board and the IES employees, we thank you for your continued support and
your confidence.&nbsp; </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:150%'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:150%'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:150%'>&nbsp;</p>

<p>&nbsp;</p>
<p align="center">&#8209;8&#8209;</p>

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<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">
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</font>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:150%'><b><i>Forward-Looking
Statements</i></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:12.0pt'><i>Certain statements in this document
are &#147;forward-looking statements&#148; within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934,
all of which are based upon various estimates and assumptions that the Company
believes to be reasonable as of the date hereof. In some cases, you can
identify forward-looking statements by terminology such as &#147;may,&#148; &#147;will,&#148;
&#147;could,&#148; &#147;should,&#148; &#147;expect,&#148; &#147;plan,&#148; &#147;project,&#148; &#147;intend,&#148; &#147;anticipate,&#148;
&#147;believe,&#148; &#147;seek,&#148; &#147;estimate,&#148; &#147;predict,&#148; &#147;potential,&#148; &#147;pursue,&#148; &#147;target,&#148;
&#147;continue&#148; or the negative of such terms or other comparable terminology. These
statements involve risks and uncertainties that could cause the Company&#146;s
actual future outcomes to differ materially from those set forth in such
statements. </i></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:12.0pt'><i>Such risks and uncertainties
include, but are not limited to, the ability of our controlling shareholder to
take action not aligned with other shareholders; the sale or disposition of the
shares of our common stock held by our majority shareholder, which, under certain
circumstances, would trigger change of control<a name=eolPage8></a> provisions
in our severance plan or financing and surety arrangements; the possibility
that certain tax benefits of our net operating losses may be restricted or
reduced in a change in ownership; limitations on the availability of sufficient
credit or cash flow to fund our working capital needs, capital expenditures and
debt service; difficulty in fulfilling the covenant terms of our credit
facilities; competition in our respective industries, from both third parties
and former employees, which could result in the loss of one or more customers
or lead to lower margins on new projects; the inability to achieve, or
difficulties and delays in achieving potential benefits of the acquisition of
MISCOR Group, Ltd.; challenges integrating other new businesses into the
Company or new types of work, products or processes into our divisions;
fluctuations in operating activity due to downturns in levels of construction,
seasonality and differing regional economic conditions; a general reduction in
the demand for our services; a change in the mix of our customers, contracts
and business; our ability to successfully manage projects; possibility of
errors when estimating revenue and progress to date on percentage-of-completion
contracts; additional closures or sales of facilities could result in
significant future charges and a significant disruption of our operations;
inaccurate estimates used when entering into fixed-priced contracts; the cost
and availability of qualified labor; increased cost of surety bonds affecting
margins on work and the potential for our surety providers to refuse bonding or
require additional collateral at their discretion; increases in bad debt
expense and days sales outstanding due to liquidity problems faced by our
customers; the recognition of potential goodwill, long-lived assets and other
investment impairments; credit and capital market conditions, including changes
in interest rates that affect the cost of construction financing and mortgages,
and the inability for some of our customers to retain sufficient financing,
which could lead to project delays or cancellations; accidents resulting from
the physical hazards associated with our work and the potential for accidents;
our ability to pass along increases in the cost of commodities used in our
business, in particular, copper, aluminum, steel, fuel and certain plastics;
potential supply chain disruptions due to credit or liquidity problems faced by
our suppliers; loss of key personnel and effective transition of new
management; success in transferring, renewing and obtaining electrical and
construction licenses; uncertainties inherent in estimating future operating
results, including revenues, operating income or cash flow; disagreements with
taxing authorities with regard to tax positions we have adopted; the
recognition of tax benefits related to uncertain tax positions; complications
associated with the incorporation of new accounting, control and operating
procedures; the financial impact of new or proposed accounting regulations; the
effect of litigation, claims and contingencies, including warranty losses,
damages or other latent defect claims in excess of our existing reserves and
accruals; warranty losses or other unexpected liabilities stemming from former
divisions which we have sold or closed; growth in latent defect litigation in
states where we provide residential electrical work for home builders not
otherwise covered by insurance; changes in the assumptions made regarding
future events used to value our stock options and performance-based stock
awards; the ability of IES to enter into, and the terms of, future contracts;
the inability to carry out plans and strategies as expected; future capital
expenditures and refurbishment, repair and upgrade costs; delays in
refurbishment and upgrade projects; and liabilities under laws and regulations
protecting the environment.</i></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:12.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:12.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:12.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";text-align:justify'>&nbsp;</p>

<p align="center">&nbsp;&#8209;9&#8209;</p>

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<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">
<p style="page-break-before:always">&nbsp;</p>
</font>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:12.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:12.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:12.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:12.0pt'><i>You should understand that the
foregoing, as well as other risk factors discussed in this document and in the
Company&#146;s annual report on Form 10-K for the year ended September 30, 2013,
could cause future outcomes to differ materially from those expressed in such
forward-looking statements. The Company undertakes no obligation to publicly
update or revise any information, including information concerning its
controlling shareholder, net operating losses, borrowing availability, or cash
position, or any forward-looking statements to reflect events or circumstances
that may arise after the date of this release.</i></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:12.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:12.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:12.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:12.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:12.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:12.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:12.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:12.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:12.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:12.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"CG Times","serif";margin-top:7.0pt;line-height:5.0pt'><font style="font-size: 5.0pt">&nbsp;</font></p>

<p align="center">&nbsp;</p>
<p align="center">&#8209;10&#8209;</p>

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