SOURCE: Packaged Home Solutions

October 12, 2006 09:00 ET

Packaged Home Solutions, Inc. Announces Innovative Cross Marketing Agreement

Relationship With Mary Kay Cosmetics® in Cincinnati to Be Expanded to Thirty Markets in 2007

CINCINNATI, OH -- (MARKET WIRE) -- October 12, 2006 -- Packaged Home Solutions, Inc. -- (PINKSHEETS: PKGH) -- www.PHSTeam.com -- ("PHS" or "The Company"), which announced last week its entry into the public market, is today announcing a cross marketing program with Beth Smith and Gigi Cimmarusti, Senior Beauty Consultants of Mary Kay Cosmetics® in Cincinnati, Ohio and surrounding markets, which is the corporate headquarters of PHS. It is the intention of both companies to expand this relationship to each market that Packaged Home Solutions has a branch or satellite office, and to the additional markets that PHS is expanding into. This cross marketing program represents another innovative marketing approach that will create new kitchen & bath remodeling business for the Company that is outside the thinking of the traditional remodeling company.

Through this first in the industry relationship, PHS will work on cross marketing opportunities for products and services from both companies with Business Consultants of Mary Kay Cosmetics®, which is recognized as a world leader in providing women a proven business model for those desiring to be independent business owners. Mary Kay Cosmetics® has over 650,000 independent business consultants, with a majority of those being in markets in which PHS already has offices or will have offices in 2007. At the same time, it is a fact that women are the primary decision makers when it comes to making improvements to the home, and this marketing relationship will build alliances with Mary Kay Cosmetics® Business Affiliates which is universally directed to women. The following bullet points detail how & why this association will direct new business into Packaged Home Solutions in its various markets:

1. When any PHS client has a bathroom remodeled, PHS will present that customer a special thank you gift, comprised of a large basket of Mary Kay Cosmetics® and a bath robe. This basket is a key aspect of the cross marketing opportunity for PHS and Mary Kay Cosmetics® Independent Consultants, since it will introduce the cosmetic lines to various women who may not have been exposed to the products before, while solidifying the relationship of PHS with that homeowner.

2. The beauty consultants in each city hold weekly business and training events where Directors of Mary Kay Cosmetics® will be exposed to the products and services of PHS. On a regular basis, such meetings will be held at the local offices of PHS. This provides PHS the opportunity to educate each Mary Kay® consultant on its various products and services, so those products and services may be introduced to the existing and future clients of those consultants.

3. A Mary Kay Cosmetics® Referral Partner program has been established, where Packaged Home Solutions will donate 2%, up to a maximum of $500 per referral, to the Mary Kay Ash Charitable Foundation. This will translate into a considerable amount of donations each year into this charity directed toward domestic abuse and medical research for cancer related to women.

4. Each quarter, Mary Kay® holds regional meetings where National Sales Directors, Directors, Consultants and guest speakers of Mary Kay Cosmetics® provide training and motivation to the rank & file. PHS will be a major sponsor for those events -- thus building brand recognition for Packaged Home Solutions at the local and regional level.

5. Each year, Mary Kay Cosmetics® holds a national meeting, where thousands in the organization are trained & motivated by the management of the company. PHS will be a sponsor and exhibitor at this national show -- thus continuing to build national brand recognition within this group.

6. Packaged Home Solutions intends to be "major sponsor" for many Mary Kay Cosmetics® events and a goodwill ambassador at these events which enables PHS employees to pass out marketing materials and information about PHS' Cross Marketing Referral Program, and its involvement in the Mary Kay Ash Charitable Foundation.

7. PHS will offer free kitchen and/or bath design ($400 value) to Mary Kay Cosmetics® affiliates in any market in which Packaged Home Solutions is operating.

In discussing this innovative program, Ms. Gigi Cimmarusti, a Senior Marketing Consultant for May Kay Cosmetics, stated: " We look forward to developing a strong working relationship with PHS not only in Cincinnati, but in all the markets that PHS is presently servicing and will be expanding into in the near future. Although this is a first in both industries, it is an ideal marketing relationship, since both companies have direct access to thousands of women who buy the products and services offered by our respective companies. The key to a successful marketing campaign is to gain and maintain the trust of the woman of the home, which both companies have established. We believe through these cross referrals we will better fulfill the needs of our clients, while enhancing the businesses of both companies." Mr. Dan Smith, CEO of PHS, stated: "This is the first joint marketing relationship that we are announcing, but is certainly not the last. Our relationship with the consultants of Mary Kay Consultants® and other similar relationships gain exposure for PHS to a substantial amount of homeowners who may be considering improvements to their home, at a substantially cheaper customer acquisition cost than the traditional advertising venues used in our industry. We look forward to expanding this relationship into all of our markets."

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 livability of the home today while maximizing the current and future value of the home in the marketplace.

PHS currently has seven offices located in Cincinnati and Dayton Ohio, Indianapolis, Indiana, Louisville, Kentucky, Jacksonville (2) and Miami, Florida. The Company's intention is to open a regional office in Tampa, Florida prior to the year's end, as well opening additional satellite offices in Cincinnati and Miami. The Company also is exploring various acquisition opportunities to vertically integrate its structure. 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 2007, the Company plans to have 30 operational offices, making it one, if not the largest, home improvement services company in the United States. At that the 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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FORWARD-LOOKING STATEMENTS

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
    772-219-7525
    http://www.wallstreetresources.net

    Packaged Home Solutions:
    Mike Klieber
    COO
    513-733-1800
    888-818-4172