SOURCE: Packaged Home Solutions, Inc.

December 07, 2006 09:10 ET

Packaged Home Solutions, Inc., Announces Innovative Cross Marketing Agreement with GMCC Financial

PHS Has Partners With GMCC Financial, an Agent for Global Mortgage, Inc., to Provide In-House Financing Programs

Marketing Relationship Will Continue to Expand Into Each PHS Market in 2007

CINCINNATI, OH -- (MARKET WIRE) -- December 7, 2006 -- Packaged Home Solutions, Inc -(PINKSHEETS: PKGH) -- -- ("PHS" or "The Company") , is today announcing a cross marketing program that will provide an exclusive in-house financing program with GMCC Financial, an agent for Global Mortgage, Inc. which operates in over 37 States. This program will provide easy access to PHS clients for a variety of financing programs for the home improvement packages offered by PHS. It is the intention of both companies to expand this relationship to each market that Packaged Home Solutions has a regional branch or satellite office, and to the additional markets that PHS is expanding into in 2007. This cross marketing program represents another innovative "outside the box" marketing approach that will create new kitchen, bath and exterior remodeling business for the Company, as compared to the traditional marketing methods utilized by competing remodeling companies.

Through this value-added industry relationship, PHS will work on cross marketing opportunities for products and services offered by both companies. GMCC Financial is a full service mortgage broker that has built a strong reputation for serving the lending needs of home owners, real estate professionals, and homebuyers nationwide. GMCC Financial, through its relationship to Global Mortgage, offers expertise in every area of mortgage lending -- from home improvement programs to purchase, refinance or construction lending -- as Global Mortgage is the one of the largest and fastest growing mortgage brokerage firms in the industry. GMCC Financial will be able to offer a finance program for virtually any type of credit client that Packaged Home Solutions works with. As an agent of Global Mortgage, Inc., GMCC Financial is able to offer approved lending with more than 260 of the leading wholesale lenders throughout the United States.

The reason for PHS to team up with GMCC Financial makes good business sense for both companies. GMCC Financial and Packaged Home Solutions have hundreds of existing clients that they will be able to cross market each of their services. They have access to a full range of finance sources and their loan officers are lending specialists dedicated to finding the right loan -- with the best rates, terms and costs -- to meet the clients' unique needs.

In an industry first, GMCC Financial has agreed to place one or more of their loan officers in every PHS branch & satellite office. These loan officers will provide an "in-house" finance specialist for Packaged Home Solutions without the associated overhead expense. In addition, these loan officers will be aggressively marketing their financial services to homeowners considering refinancing and / or home buyers that need first mortgages, second mortgages, home equity line of credit (HELOC) loans, debt consolidation loans, hard money loans, signature loans, etc. Each of those clients will be exposed to Packaged Home Solutions and their interior & exterior remodeling services. Furthermore, all homeowners utilizing the services of PHS will be able to know their best financing alternatives immediately, which should accelerate the time period for PHS from design on home improvements to closing of a contract with the client.

Mr. Joe Callahan, a partner of GMCC Financial, stated, "The key to a successful cross marketing campaign is to gain and maintain the trust of the homeowner 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. As an example, GMCC Financial will provide PHS with customized financing programs that offer "Zero-Out-of-Pocket" Money Down to each PHS client. This innovative program will allow the homeowner to put $0 money out of pocket until the entire remodeling project is completed. We intend to train a key strategic selling point to every PHS sales person -- not to sell a $30,000 kitchen remodel, but instead to be "SELLING" a small monthly payment option -- (example: they can get their $30,000 dream kitchen for only $315 per month). Furthermore, in a softening real estate and mortgage loan environment, GMCC will give the homeowner numerous financing alternatives, instead of the customer relying solely on his or her local banking sources for financing."

In discussing this cross marketing program, Mr. Dan Smith, CEO of PHS: "We look forward to developing a strong working relationship with GMCC Financial 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 homeowners who want and need the products and services offered by our respective companies. We intend to build "win / win" relationships with other similar organizations in order to gain exposure for PHS to a substantial amount of homeowners who may be considering improvements to their home, at less of a customer acquisition cost than the traditional advertising venues used in our industry. This is our third unique joint marketing relationship -- and more will be coming in the future. We look forward to expanding this relationship with GMCC Financial 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 homes that range from $150,000 to $700,000, 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 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 Dallas by the end of January 2007, as well opening additional satellite offices in Cincinnati and Columbus. The Company also is exploring various acquisition opportunities to vertically integrate its structure. The Company will be opening regional offices in 2007 in Atlanta, 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, 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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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

    Packaged Home Solutions:
    Mike Klieber, COO