SOURCE: Packaged Home Solutions

November 30, 2006 09:00 ET

Packaged Home Solutions, Inc. Announces Agreement to Acquire Fidelity Builders, Inc., a 10-Year-Old Exterior Remodeling Company Based out of Indianapolis, IN

Acquisition to Add Approximately $4.3 Million to PHS' Gross Revenues in 2007

CINCINNATI, OH -- (MARKET WIRE) -- November 30, 2006 -- Packaged Home Solutions, Inc. (PINKSHEETS: PKGH) www.packagedhomesolutions.com ("PHS" or "the Company") today announced that it has signed an agreement to purchase one of Indiana's leading exterior remodeling companies with a core specialty of the installation of fiber cement siding.

PHS intends to acquire substantially all of the outstanding stock of Fidelity Builders, and its wholly owned subsidiary SideFX, LLC. (SideFX™). Fidelity Builders and SideFX are based out of Indianapolis, Indiana, and service the entire central Indiana marketplace. Fidelity Builders & SideFX have served thousands of customers in the Indianapolis and surrounding areas of Central Indiana with high-quality exterior home remodel and installation products and services for nearly 10 years.

Fidelity Builders is recognized as a premium exterior remodeling company specializing in high-quality fiber cement siding installations, high-end window & entry door replacements, gutters, etc. This represents the second acquisition by PHS announced in November in its strategy of acquiring certain niche remodeling companies in each targeted marketplace. PHS intends to introduce the SideFX products and services into all of its present offices and each office that PHS expands into, which will allow the Company to sell the siding products in its regional and satellite offices, and eventually through domestic and international distributors.

Fidelity Builders' SideFX subsidiary is approaching the $3.0 million gross revenue mark in 2006 and with additional product and service offerings to the Central Indiana marketplace and projects 2007 gross revenues from internal growth of $4.3 million. Gross margins exceed 40%. PHS will enhance this internal growth with the introduction of SideFX's products and services to all of its offices, and anticipates a significant increase in interior business in Indiana through cross-marketing the current PHS interior products and services to the customer base of SideFX.

Dan Smith, CEO of PHS, in discussing the acquisition of Fidelity Builders, Inc., which should close prior to the end of the year, stated: "The acquisition of Fidelity Builders is another example of our strategic plan to acquire medium-sized remodeling companies in each targeted market, at historically low prices. This allows us to expand beyond just the design and installation of home improvements for our interior customers, but to also provide proprietary products to our offices, which exceed the quality of the products offered by our competitors. Furthermore, each acquisition offers cross-market opportunities for our interior products and services, such as kitchens and baths, as well as cost synergies which will drive net income. Prior to the end of the year, we will be issuing our specific guidance for the first quarter of 2007 for all operations, and our consolidated projections for all of 2007. We believe that these projections will indicate why our acquisition strategy, coupled with our internal growth strategy will soon establish us as one of the largest home improvement service companies in the US."

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 $750,000, 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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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
    513-733-1800
    888-818-4172