Avatech Solutions Inc.

Avatech Solutions Inc.

(OTC BB: AVSO)

(OTC BB: AVSO)

Scotty Walsh

CHIEF EXECUTIVE

OFFICER

George Davis

EXECUTIVE VICE

CHAIRMAN

Lawrence

Rychlak

CHIEF FINANCIAL

OFFICER

December 2006

Exhibit 99.2

2

Forward-Looking Statement

Forward-Looking Statement

Statements

contained

herein

and

the

information

incorporated

by

reference

herein

may

be

forward-looking

statements

within

the

meaning

of

Section

21E

of

the

Securities

Exchange

Act

of

1934

(the

"Exchange

Act").

Forward-looking

statements

can

be

identified

by

the

use

of

forward-looking

terminology

such

as,

but

not

limited

to,

"may,"

"will,"

"expect,"

"anticipate,"

"estimate,"

"would

be,"

"believe,"

or

"continue"

or

the

negative

or

other

variations

of

comparable

terminology.

We

intend

such

forward-looking

statements

to

be

covered

by

the

safe

harbor

provisions

applicable

to

forward-looking

statements

contained

in

Section

21E

of

the

Exchange

Act.

Such

statements

(none

of

which

is

intended

as

a

guarantee

of

performance)

are

subject

to

certain

assumptions,

risks

and

uncertainties,

which

could

cause

our

actual

future

results,

achievements

or

transactions

to

differ

materially

from

those

projected

or

anticipated.

Such

risks

and

uncertainties

are

set

forth

herein.

Forward-looking

statements

include

statements

concerning

plans,

objectives,

goals,

strategies,

future

events,

or

performance

and

underlying

assumptions

and

other

statements,

which

are

other

than

statements

of

historical

facts.

These

statements

are

subject

to

uncertainties

and

risks

including,

but

not

limited

to,

product

and

service

demands

and

acceptance,

changes

in

technology,

economic

conditions,

the

impact

of

competition

and

pricing,

and

government

regulation

and

approvals.

Avatech

Solutions

cautions

that

assumptions,

expectations,

projections,

intentions,

or

beliefs

about

future

events

may,

and

often

do,

vary

from

actual

results

and

the

differences

can

be

material.

Our

expectations,

beliefs

and

projections

are

expressed

in

good

faith

and

are

believed

to

have

a

reasonable

basis,

including

without

limitation,

our

examination

of

historical

operating

trends,

data

contained

in

our

records

and

other

data

available

from

third

parties.

There

can

be

no

assurance,

however,

that

our

expectations,

beliefs

or

projections

will

result,

be

achieved,

or

be

accomplished.

Readers

are

cautioned

not

to

place

undue

reliance

on

these

forward-looking

statements,

which

speak

only

as

of

the

date

hereof.

We

undertake

no

duty

to

update

these

forward-looking

statements.

3

Mission

To be the recognized leader in delivering

solutions and services that drive product

innovation, productivity and collaboration

in target vertical markets.

4

Investment Highlights

Investment Highlights

Dominant provider in the U.S. Design Automation software and services

market.

•

Installed base of 25,000+ customers; 90% repeat purchasers.

•

Largest U.S. Autodesk VAR.

Favorable industry dynamics creating strong Product and Service growth

opportunities.

•

Next generation Autodesk products driving conversion to 3D.

•

Accelerating SMB market adoption.

Targeting $100MM revenue run rate over 3-5 years.

•

Leverage installed base to offer diversified set of software solutions

and services.

•

Expand geographic footprint through opportunistic acquisitions.

Expanding Service revenues.

•

Focus on increasing service revenues from 19% in FY2006 to 30-40%

over 3-5 years.

Turned the corner on profitability in FY2005.

Proven management team supported by strong Board of Directors.

5

As the largest U.S. VAR of Autodesk (ADSK) software, Avatech

provides high-end software solutions and value-added engineering

consulting services…

…enabling businesses to optimize productivity and innovation with

a

fully integrated solution.

Enabling Productivity and Innovation

Enabling Productivity and Innovation

SOLUTIONS

SERVICES

•

Design Automation

•

Product Lifecycle Mgmt

•

Facilities Mgmt

•

Training

•

Installation/Integration

•

Consulting

•

Custom Software Devl.

6

Enabling Customers In:

Enabling Customers In:

Building

Infrastructure

Manufacturing

•

Automotive

•

Aerospace

•

Building and Plant

Machinery

•

Consumer Prod

•

Architecture

•

Engineering

•

Construction

•

Utilities

•

Public Works

•

Transportation

7

Market Opportunities

Market Opportunities

•

Gov’t-driven

Infrastructure

Improvements

•

Improve Site

Development

$1.5BN

CAD Solutions

•

Collaboration

•

Urban Renewal

•

Suburban

Expansion

$3BN

CAD Solutions

•

Globalization +

Collaboration

PDM

•

Shorter Product

Lifecycles

•

2D to 3D

•

PLM

•

FM

$12BN

PLM Solutions

$8BN

CAD/CAM Solutions

Sector

Drivers

Market

Drivers

Global

Market Size*

Building

Infrastructure

* Source: Daratech

and Autodesk Internal Research

Manufacturing

8

Avatech Solutions Overview

Avatech Solutions Overview

Avatech is the leading design automation and

engineering systems integrator in the U.S.

Avatech enables organizations to more effectively

design, develop and manage projects, products and

facilities.

Typical projects include:

•

Implementation of Design Automation, Product Lifecycle

Management and Facilities Management Software.

•

Design and development of business rules, workflows and

design standards for major projects in

architecture/building, civil development and manufacturing.

•

Enterprise-level education and training for designers,

engineers and architects.

9

Strong Customer Base

Strong Customer Base

25,000+ customers with 90% repeat business.

No customer represents more than 2% of revenues.

Prominent customers include:

10

Avatech’s

Avatech’s

History

History

* Excluding Proprietary Software Sale of $1.9MM

$0

$10

$20

$30

$40

$50

$60

$70

FY03

FY04

FY05

FY06

FY07 (Est.)

$23MM

$28MM

$32MM*

$40MM

$55-60MM

11

Largest Integrator of Autodesk Solutions in the U.S.

Largest Integrator of Autodesk Solutions in the U.S.

21 Offices Nationwide

30 Training Centers and Mobile Labs

Focused Vertical Industry Teams

•

Manufacturing

•

Infrastructure/Civil

•

Building Solutions

National Technical Support Center

Autodesk Authorized Training Center

175+ Sales and Service Personnel

12

The Opportunity

The Opportunity

Conversion to

3D Modeling

The Computer-Aided Design (CAD) Market is

growing driven by the need for 3D conversions.

Diversification

The Facilities Management (FM) and Product

Lifecycle Management (PLM) markets are high

growth with the potential for high service blends.

Shortage of

Solutions

Integrators

There is an extreme shortage of solutions

integrators with scale to serve the market.

Avatech is well positioned to become the leading

solutions integrator to Small and Medium Businesses

(SMB).

13

Computer Aided Design -

Computer Aided Design -

CAD

CAD

Convert

to

3D

to

Compete

–

Customers

who

used

2D

design

software products are converting to 3D solutions to compete.

Conversion to 3D systems will drive at least half of all CAD software

spending and produce substantial new revenues and services

opportunities.

The CAD and Collaborative Design software market exceeds

$7.5BN in revenues and needs more services companies to drive

growth.

3D solutions allow designers

to picture how the finished

product will look and perform

before it is built.

14

Product Lifecycle Management –

Product Lifecycle Management –

PLM

PLM

PLM is the process of collecting, integrating and managing all the data

related to a product over its lifecycle.

PLM expected to equal ERP solutions in importance for manufacturers

in multiple vertical industries over the next decade.

Services revenues expected to equal 1.5-2X software revenues.

The SMB market will account for a majority of the PLM spending

through Avatech’s

planning horizon.

Avatech is converting manufacturing clients today.

15

Facilities Management -

Facilities Management -

FM

FM

FM solutions provide an organization with the capability to track and

manage their fixed assets and human capital.

High growth practice. Value Added

Services generate 2-5X more revenue

than software.

Customers include NASA, NIH, Auburn

University.

MARKET TRENDS

Allows access to facilities data for emergency situations

and to share that data with emergency services.

Homeland

Security

Enable Corporations to make decisions that optimize

ROI and increase overall productivity and profitability.

Corporate Real

Estate

Public grants require organizations to submit detailed

facilities reports to maintain funding.

Educational/

Government

16

Case Study:  Baltimore Gas & Electric Company

Case Study:  Baltimore Gas & Electric Company

Company Profile:

A premier utility service provider in Maryland, BGE serves

more than one million business and residential electric customers and more

than 600,000 gas customers.  It is a division of Constellation Energy (NYSE:

CEG), the #1 supplier of energy in competitive markets and the largest

wholesale power provider in North America.

Challenge

Results

Scope of AVSO’s

Services

•

Develop a streamlined, error-free

process for BGE’s

Real Estate

Facilities Services division to

manage the company’s extensive

real estate assets.

•

Meet CEG’s

application and

database requirements.

•

Facilitate importation of financial

and personnel data.

•

Business and implementation

planning for replacement of

Aperture system with

Archibus/FM and OSIS

Enterprise.

•

Needs analysis and consulting

services for systems integration

of Archibus/FM, OSIS and Map

Guide applications.

•

Pilot site development for testing

and validation.

•

Application training and project

management.

•

Improved access to facility and

infrastructure information.

•

Reduced errors and eliminated

data maintenance issues

between multiple systems.

•

Conformed  to all CEG standards.

•

Facilitated access of financial and

accounting data.

•

Open information project.

17

Growth Strategy

Growth Strategy

Focuses on expanding our products, geography and people with a

clear emphasis on growing our Services business.

Profitable operations in new geographic regions and the

potential

to

be

accretive

to

Avatech’s

Service

revenues

(e.g., Sterling acquisition in May 2006).

Opportunistic

Acquisitions

Add new software manufacturers, offer additional

services and continue development of new proprietary

software products to fill voids in existing markets.

Diversification

Organic expansion into underserved geographic areas

where Avatech can profitably provide value added

solutions and services.

Organic/

Geographic

Expansion

18

Financials

19

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

FY2003

FY2004

FY2005

FY2006

Product

Services

Commission

12.4

5.9

4.2

17.7

5.5

4.8

20.7

6.1

5.5

25.4

7.4

6.9

$22.5

$28.0

$32.2

$39.6

Revenue Growth from FY2003

Revenue Growth from FY2003

23%

19% of

Revs

* Services

22% of Revenues, Q1 2007

20

Earnings Trend

Earnings Trend

$(3.8)

$(0.9)

$2.2

$0.1*

$(5.0)

$(4.0)

$(3.0)

$(2.0)

$(1.0)

$-

$1.0

$2.0

$3.0

FY2003

FY2004

FY2005

FY2006

* Excludes one-time proprietary software sale to Autodesk.

21

$1.06

$0.96

$0.04

$0.05

$0.04

$-

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

Q1'06

Q2'06

Q3'06

Q4'06

Q1'07

Long-term debt has been

reduced…

…while shareholder’s equity has

improved to $4.9MM.

$(1.3)

$(0.3)

$1.1

$4.7

$4.9

$(2.0)

$(1.0)

$-

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

Q1'06

Q2'06

Q3'06

Q4'06

Q1'07

Enhanced Balance Sheet

Enhanced Balance Sheet

22

Financial Highlights

Financial Highlights

23% Annual Revenue Growth from FY2005

•

14.8% CAGR since FY2003

2

nd

Profitable Year

•

8

th

Sequential Quarter of Operating Profit

Enhanced Balance Sheet

•

Reduction of Long Term Debt

•

$4.9MM positive Shareholder’s Equity as of Q1 FY2007 vs.

$1.3MM deficit in Q1 FY2006.

$4.4MM in Cash Flow from Operating Activities

in FY2006

23

Future Direction

Future Direction

Our financial goals include:

10-20% annual revenue growth to achieve a $100MM revenue run

rate in the next 3-5 years.

Increasing net income to 10-12% of total revenues.

Increasing Services revenues to 30-40% of total revenues and raising

the Services gross margin by 4-5%.

•

Offer other non-CAD

software solutions

and services to

existing customers.

•

Continue FM and

PLM Divisions

expansion.

•

Increase variety of

value added

services.

DIVERSIFICATION

•

Leverage extensive

customer base to

sell add’l

services.

•

Increase utilization

of technical

personnel.

•

Opportunistically

acquire companies

with the potential of

increasing services.

SERVICES

Growth Drivers

24

Investment Highlights

Investment Highlights

Dominant provider in the U.S. Design Automation software and services

market.

•

Installed base of 25,000+ customers; 90% repeat purchasers.

•

Largest U.S. Autodesk VAR.

Favorable industry dynamics creating strong Product and Service growth

opportunities.

•

Next generation Autodesk products driving conversion to 3D.

•

Accelerating SMB market adoption.

Targeting $100MM revenue run rate over 3-5 years.

•

Leverage installed base to offer diversified set of software solutions

and services.

•

Expand geographic footprint through opportunistic acquisitions.

Expanding Service revenues.

•

Focus on increasing service revenues from 19% in FY2006 to 30-40%

over 3-5 years.

Turned the corner on profitability in FY2005.

Proven management team supported by strong Board of Directors.