SOURCE: Packaged Home Solutions

January 17, 2007 09:01 ET

Packaged Home Solutions, Inc. Announces Agreement to Purchase a Jacksonville, Florida-Based Regional Home Services Company

Acquisition of J&Y Wheeler Inc. Expands the PHS Product and Service Offerings for Its Residential Customer Base, and Provides for Greater Installation Capabilities to Wheeler's National Home Improvement Retail Clientele

CINCINNATI, OH -- (MARKET WIRE) -- January 17, 2007 -- Packaged Home Solutions, Inc. (PINKSHEETS: PKGH) -- ("PHS" or "The Company") is today announcing that it has agreed to terms to purchase a 29-year-old residential home services company headquartered in Jacksonville, Florida. The acquisition will be completed later this week. PHS will be acquiring J & Y Wheeler, Inc., a regional company with market presence in Southern Georgia and Northeast Florida. The company has grown from a small family owned business started in 1978 to a diversified operation with retail locations in Jacksonville, FL and Hinesville, GA.

At present, Wheeler focuses on three areas of home improvement related products and services:

(1)  offering a full-line of exterior products in both of its retail
(2)  interior renovation; and
(3)  "installed only" services for national home improvement retailers
     and manufacturers throughout its current geographical coverage area.
In addition, PHS will be merging its own existing kitchen and bath division in Jacksonville with the acquired company's existing operations to produce a product and service offering in their entire regional coverage area, to include: Sunrooms, Screen Rooms, Vinyl and Hurricane Windows, Seamless Aluminum Gutters, Gutter Protection, Vinyl Siding, Design, Kitchen and Bath Remodeling, Roofing and Exterior/Interior Entry Doors.

Five key managers from Wheeler's have agreed to stay on with the company following its acquisition by PHS, bringing with them some 100+ years of industry experience, which include senior management positions with Sears, Home Depot and Owens Corning. Such continuity in personnel will allow for a deliberate and steady transition, giving the Company the ability to effectively blend all products and services throughout Wheeler's coverage area in 2007.

This acquisition further develops the Company's strategy of combining fixed expenses and resources with proven home improvement companies in certain geographical areas, while developing uniformed multiple income streams in multiple locations, thereby enhancing revenues through cross-marketing to their own end-users and those of national retailers, at a reduced cost stemming from the consolidation of fixed expenses. Wheeler, without consideration of further expansion and synergies, is projecting gross revenues of $4.5 million, with an expected net profit of 14% to 16% in 2007.

Dan Smith, President of PHS in announcing the acquisition stated, "The acquisition of a company such as this is exciting in that it brings three vital components to the table; strong, effective and proven management, a multi-faceted income stream approach that fits well with our one-stop shop objectives for our homeowners; as well as the enhancement of our installed only labor-based initiative aimed at providing various national home improvement retail chains with the best solution for their customers. It reduces our labor cost, which equates to an even more competitive price, while protecting and even improving our margins. As indicated by our recent announcements, we are in full implementation of our external acquisition strategy, as well as our internal growth program. The combination of both strategies should allow us to achieve our objective of being one of the largest, if not the largest, home improvement services companies in the United States by the end of 2007. We will be announcing our financial guidance for 2007 before the end of January, and we are sure that our shareholders will be pleased."

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 also has a manufacturing facility located in North Carolina. The Company's intention is to open 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 middle 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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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.

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