SOURCE: U.S. Dry Cleaning Corporation

September 27, 2007 08:00 ET

U.S. Dry Cleaning Corporation Receives Updated Research Coverage and "Buy" Rating From Pro-Active Research Group

PALM SPRINGS, CA--(Marketwire - September 27, 2007) - U.S. Dry Cleaning Corporation (OTCBB: UDRY) ("U.S. Dry Cleaning"), the first mover in consolidating the nation's dry cleaning industry, has received an updated research report and a reiterated "Buy" rating from Pro-Active Research Group, which initiated coverage of U.S. Dry Cleaning in April 2007.

The report focuses on three important recent developments:

--  U.S. Dry Cleaning's IPO completed on July 19, 2007, which raised
    approximately $6.1 million;
--  U.S. Dry Cleaning's third quarter results reported on August 14, 2007
    showing revenues up 50% year over year; and
--  U.S. Dry Cleaning's pending acquisition of the largest dry cleaning
    business in the Central California Valley, announced on September 6, 2007.
    

Based on the successful completion of these milestones, which advance U.S. Dry Cleaning's growth-through-acquisition strategy, the report projects a share price of $4.00 in the intermediate term and $5.00 in the long term.

Robert Y. Lee, CEO of U.S. Dry Cleaning, said, "We are pleased to make this report readily available for all our current shareholders as well as potential investors. We believe the report presents balanced and detailed insight that will enhance understanding of our business strategy, our achievements and our potential."

Mr. Lee added, "Our management team is highly experienced in retail consolidation, and we believe that the 'first mover' consolidating any market is able to acquire market-leading businesses at the most favorable prices, ahead of potential competition. We believe it is the early stage of consolidation that reaps the greatest financial rewards for all parties. We think our recent achievements testify to that belief and our momentum will increase as planned in the coming year."

U.S. Dry Cleaning's strategy is to be the first business to consolidate a premier national dry cleaning chain that will provide high quality and service to its customers, good wages and working conditions for its employees, and increased equity value for its shareholders. U.S. Dry Cleaning is acquiring profitable dry cleaning companies that are Number 1 in their markets and generate more than $5 million in annual revenues. Upon the closing of its recently announced fourth acquisition, U.S. Dry Cleaning's retail outlets will increase from 32 to 52 and the annualized run rate will rise to just under $17 million, nearly triple that of 2006.

The research report offers a full description of U.S. Dry Cleaning's business model, and states, "Very importantly, besides using acquisitions to build the company and their revenues, the co. is also targeting increased bottom line profitability from a variety of sources including economies of scale, branding, hub & spoke systems, etc."

The report, which was commissioned by Consulting for Strategic Growth 1 on behalf of U.S. Dry Cleaning, also examines the company's financial strength and discusses industry trends and the competitive environment in which there are few if any comparable companies.

To view and download the Pro-Active Research Report, please visit www.cfsg1.com and click on U.S. Dry Cleaning logo; or go to www.usdrycleaning.com and click on Investor Relations.

About U.S. Dry Cleaning Corporation

U.S. Dry Cleaning Corporation's mission is to create the premier national chain in the dry cleaning industry. Over the last year and half, U.S. Dry Cleaning has completed acquisitions with combined annual revenues of more than $9 million. U.S. Dry Cleaning combines a management team with extensive experience in retail consolidations and premier dry cleaning operations, with a proven operating model.

U.S. Dry Cleaning intends to acquire profitable, positive cash flow operations at accretive valuations. Each acquisition target is expected to be self-sufficient and field management is expected to remain in place to ease the assimilation. U.S. Dry Cleaning is focused on acquiring profitable businesses that hold a leading share in their individual markets.

U.S. Dry Cleaning management believes that the current absence of extensive competition to acquire the larger dominant operators will change as the industry consolidates. Management believes that the greatest value achieved in any consolidation occurs during the earliest phases and U.S. Dry Cleaning intends to grow as rapidly as possible to deliver shareholder value.

This release is provided for informational purposes only and should not be construed as a solicitation to invest. U.S. Dry Cleaning Corporation's future operation results are dependent upon many factors, including but not limited to: (i) U.S. Dry Cleaning's ability to obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) U.S. Dry Cleaning's ability to build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond U.S. Dry Cleaning's control; and (iv) other risk factors discussed in U.S. Dry Cleaning's periodic filings with the U.S. Securities and Exchange Commission, which are available for review at http://www.sec.gov/ under "Search for Company Filings."

In accordance with a December 5, 2006 agreement, Consulting For Strategic Growth 1, Ltd. ("CFSG1") provides U.S. Dry Cleaning Corporation with consulting, business advisory, investor relations, public relations and corporate development services. CFSG1 receives only restricted stock as compensation from U.S. Dry Cleaning. CFSG1 may also choose to purchase U.S. Dry Cleaning's common stock and thereafter liquidate those securities at any time it deems appropriate to do so. For more information, please visit www.cfsg1.com.

Contact Information

  • Company Contact:
    Rick Johnston
    Director of Shareholder Communications
    Tel: 760-668-1274
    Email: Email Contact
    www.usdrycleaning.com

    Investor Relations:
    Stanley Wunderlich
    CEO
    Consulting For Strategic Growth 1
    Tel: 800-625-2236
    Email: Email Contact
    www.cfsg1.com

    Media Relations:
    Daniel Stepanek
    Consulting For Strategic Growth 1
    Tel: 212-896-1202
    Fax: 212-697-0910
    Email: Email Contact