EXHIBIT 99.1


(INTEGRATED ELECTRICAL SERVICES LOGO)                           NEWS RELEASE


                                 Contacts:  Jeffrey Pugh, CFO
                                            Integrated Electrical Services, Inc.
                                            713-860-1500

                                            Ken Dennard / ksdennard@drg-e.com
                                            Karen Roan / kcroan@drg-e.com
                                            DRG&E / 713-529-6600


            INTEGRATED ELECTRICAL SERVICES RECEIVES NOTICE OF DEFAULT
            FROM THE TRUSTEE FOR THE SENIOR SUBORDINATED NOTE HOLDERS


         HOUSTON - SEPTEMBER 7, 2004 - Integrated Electrical Services, Inc.
(NYSE: IES) announced today that it has received notice of default from the
trustee for a series of its senior subordinated notes under an indenture dated
January 28, 1999, with CUSIP number 45811EAB9 totaling $62.9 million that a
default has occurred because IES failed to file its fiscal 2004 Third Quarter
Report on Form 10-Q with the Securities and Exchange Commission.

         The company announced on September 2, 2004 that it had received notice
of default from the trustee for a different series of its senior subordinated
notes under an indenture dated May 29, 2001, with CUSIP number 45811EAE3
totaling $110.0 million. Both series of these bonds total $172.9 million and
share substantially the same terms. IES has 30 days to obtain a waiver from a
majority in interest of its subordinated note holders to resolve the default,
and IES is in the process of seeking those waivers.

         The company currently anticipates that its delayed Third Quarter Report
on Form 10-Q will be filed concurrently with the filing of its year-end
financial statements.


         Integrated Electrical Services, Inc. is the leading national provider
of electrical solutions to the commercial and industrial, residential and
service markets. The company offers electrical system design and installation,
contract maintenance and service to large and small customers, including general
contractors, developers and corporations of all sizes.


This press release includes certain statements, including statements relating to
the Company's expectations of its future operating results that may be deemed to
be "forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are based on the Company's
expectations and involve risks and uncertainties that could cause the Company's
actual results to differ materially from those set forth in the statements. Such
risks and uncertainties include, but are not limited to, the inherent
uncertainties relating to estimating future results, potential consequences of
late filing of the Company's quarterly report on Form 10-Q and associated
defaults under the Company's debt, potential difficulty in addressing material
weaknesses in the Company's accounting that have been identified to the Company
by its independent auditors, the possible need for a restatement of prior year
periods if amounts are determined to be material, the inability to obtain
waivers from a majority of its senior subordinated note holders, the inability
to obtain a waiver of default from its lenders under its credit facility,
litigation risks and uncertainties, fluctuations in operating results because of
downturns in levels of construction, incorrect estimates used in entering into
and executing contracts, difficulty in managing the operation of existing
entities, the high level of competition in the construction industry, changes in
interest rates, general level of the economy, increases in the level of
competition from other major electrical contractors, increases in cost of labor,
steel, copper and gasoline, availability and costs of obtaining surety bonds
required for certain projects, inability to reach agreement with its surety
bonding company to provide sufficient bonding capacity, loss of key personnel,
difficulty in integrating new types of work into existing subsidiaries, errors
in estimating revenues and percentage of completion on contracts, and weather
and seasonality. The foregoing and other factors are discussed and should be
reviewed in the Company's filings with the Securities and Exchange Commission,
including the Company's Annual Report on Form 10-K for the year ended September
30, 2003.


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                                  END OF FILING