SOURCE: Packaged Home Solutions

November 16, 2006 09:00 ET

Packaged Home Solutions, Inc. Announces Agreement to Acquire Hurricane Window, Shutters and Door Manufacturer Al-Vent Architectural Products, Inc.

PHS' First Vertical Acquisition Expected to Add $3.5 Million in Gross Revenues in 2007 With Projected Net Profits of $630,000

CINCINNATI, OH -- (MARKET WIRE) -- November 16, 2006 -- Packaged Home Solutions, Inc. (PINKSHEETS: PKGH) ("PHS" or "the Company") today announced that it has signed an agreement to acquire Al-Vent Architectural Products, Inc., a Salem, North Carolina-based hurricane shutters, windows, and doors manufacturer. This represents the first acquisition by PHS in its strategy of acquiring certain niche manufacturers of home improvement products, which can be sold in its regional and satellite offices, as well as through domestic and international distributors.

Al-Vent Architectural Products, Inc., which will become a wholly owned subsidiary of PHS, manufactures two patented window products that can withstand wind speeds of up to 237 miles per hour, or the strength of category five hurricane winds or a maximum strength tornado. Both of these products exceed the new Florida building code requirements, as well as the strengthened building codes in Louisiana and Mississippi. The window products manufactured by Al-Vent are easily installed on existing window frames. Al-Vent Architectural Products, Inc. also offers a patented door and geared-hinge system which is designed to provide more strength and durability than the conventional door and hinge methodology, without sacrificing aesthetics.

Al-Vent Architectural Products, Inc. has existing distributor agreements in Florida, the Eastern Seaboard and in the Caribbean, which will be expanded by PHS to include new distributor agreements covering the Gulf Coast, Texas, California and Hawaii. These products would also be available in all Packaged Home Solutions present offices in four states, and all future offices, as Packaged Home Solutions, Inc. continues to implement its national expansion.

Dan Smith, CEO of PHS, in discussing the acquisition of Al-Vent, which should close no later than December 1, 2006, stated: "The acquisition of Al-Vent is the first example of our strategic plan to acquire small to medium-sized manufacturers of patented and proprietary products with existing domestic and international distribution. We will expand the distribution base of Al-Vent through our contacts in the industry, as well offer the windows, shutters and doors through our seven existing offices, and the thirty offices planned for 2007. This allows us to expand beyond just the design and installation of home improvements for our customers, but to also provide proprietary products to our offices, which exceed the quality of the products offered by our competitors. Also, our overall gross revenues and net profits will increase due to our transition to being a manufacturer, distributor and retailer of these products. We anticipate announcing similar manufacturing acquisitions in the near future, which will enhance our overall valuation and competitive position."

About Packaged Home Solutions

Packaged Home Solutions, Inc., formed in 2004, has created a systematized approach that makes remodeling fast and as "customer-friendly" as possible. The Company's executives have over 138 years of experience in the home improvement business, including senior positions with several of the largest retail home improvement chains in the US. The Company was established to provide consumers with reliable, attractive home improvement solutions, including kitchens, bathrooms, basement and exterior improvements that provide the best in product selection and installation services. The Company focuses on the middle market home in range of $100,000 to $600,000, specializing in improvements to increase the value of the home, and maximizing value of the home for sale in a softening real estate market.

PHS currently has seven offices located in Cincinnati and Dayton, Ohio, Indianapolis, Indiana, Louisville, Kentucky, Jacksonville and Miami, Florida. The Company's intention is to open a regional office in Tampa, Florida prior to the year's end, as well as opening additional satellite offices in Cincinnati and Miami. The Company will be opening regional offices in 2007 in Atlanta, Dallas, Phoenix, Denver and Southern California. These regional offices will then open satellite offices as each market matures. By the end of 2008, the Company plans to have 30 operational offices, making it one of, if not the largest, home improvement services company in the United States. At that time, the management of the Company will consider various options to maximize shareholders' value, including a sale to an industry participant.

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Statements about Packaged Home Solutions, Inc.'s expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Litigation Reform Act of 1995. Packaged Home Solutions' actual results could differ materially from expected results. Packaged Home Solutions undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this press release; Packaged Home Solutions will appropriately inform the public.

Contact Information

  • Contacts:

    Investor Relations Contact:
    Gerald Kieft
    Ryan Audin
    Wall Street Resources, Inc.
    2646 SW Mapp Road, Suite 303
    Palm City, Florida 34990

    Packaged Home Solutions:
    Mike Klieber