SOURCE: Packaged Home Solutions, Inc.

February 14, 2007 09:00 ET

Packaged Home Solutions, Inc. Completes the Acquisition of Al-Vent Architectural Products, Inc.

Al-Vent Anticipates Gross Revenues of $3,900,000 in 2007 and $5,800,000 in 2008

CINCINNATI, OH -- (MARKET WIRE) -- February 14, 2007 -- Packaged Home Solutions, Inc. (PINKSHEETS: PKGH) -- ("PHS" or "the Company") today announced its acquisition of Al-Vent Architectural Products, Inc., a North Carolina-based manufacturer of hurricane windows and doors. Al-Vent Architectural Products, Inc. was formed in 1992, the same year Hurricane Andrew devastated the southern portion of Florida causing in excess of $30 billion in damage and leaving tens of thousands homeless. With over 48 years of window design and manufacturing experience, the former owners worked on new, innovative designs that could withstand the forces of an intense category 5 hurricane, without the need for additional shutters. Al-Vent now has 9 patents and offers the strongest Hurricane windows in the world.

PHS completed the acquisition of Al-Vent in the middle of January, and is now operating it as a wholly owned subsidiary. PHS is now implementing plans for the introduction of new private label products, as well as investing in wholesale distributor relationships that will result in an immediate increase in gross sales revenue and net profits.

As part of the acquisition, the Company acquired over $125,000 of equipment and $300,000 of work in progress and inventory. Current orders to be filled for the hurricane windows exceeds $400,000, which result in gross margins of $200,000 and net profits of approximately $150,000. Since the production of the windows and doors are fully automated and not labor intensive, the overhead of the company is approximately $30,000 per month, which PHS intends to keep stable for the next 4 months.

Marketing is just kicking off due to transition to new ownership, yet new orders amounted to $210,000 in the last half of January, 2007.

Al-Vent presently produces two patented windows (Twin Vent and Awning Windows) and door products that have been certified to withstand a category 5 Hurricane with wind speeds of up to 237 miles per hour. Both of these hurricane window offerings exceed the new Florida building code requirements, as well as the enhanced building codes recently implemented in Louisiana and Texas, and are easily installed on existing window frames. Al-Vent also offers a patented door and geared-hinge system, which is designed to provide more strength and durability than the conventional door and hinge methodology of its competitors, without sacrificing aesthetics.

Special Features of the Al-Vent Patented Awning Window that make it the best in the world:

--  Patented positive locking rail at the joints of the vents when closed.
    The locking system allows for the ventilators to lift and "lock" into place
    when closed.
--  Locking pins on the sides of each Awning Window vent to complete the
    force entry resistance, and the negative pressure resistance required to
    meet the new Florida Code.
--  Meets the air infiltration of 24# per square foot testing of the new
    Florida code.
--  Meets the water infiltration testing of 12# per square foot (8" per
    hour horizontal rain) with no leakage.
--  Available with large missile laminated glass with variable thickness
    dependent on structural requirements and design perimeters.
--  Available with small missile impact glass dependent on the height of
    the window installation, (above 30 feet per the Florida Code).
--  Provides full ventilation.
--  Provides security resistance from break-in with the patented locking
    system and large missile glass when closed.
--  Available in white paint and anodized aluminum finish which resists
    salt air degradation of the aluminum.
--  Heavy duty mullions available for joining windows together in large
    openings for all Al-Vent windows
--  Can be combined with fixed glass, (high impact or small missile), as
    can the Twin Vent window.
--  Insect Screens of extruded aluminum with charcoal color aluminum mesh
    are standard.
Since acquiring the ownership of Al-Vent, PHS has signed or extended distributor agreements in the Caribbean, Hawaii and Florida, and is in the early stages of opening up new distributor relationships in Texas, Louisiana, Georgia, California Mississippi and Alabama.

Even though PHS acquired a manufacturing company -- PHS knows that its strengths are in sales & marketing. As such, PHS has formed a working relationship with Tutamen, (HK) Inc., to oversee the manufacturing of the Hurricane Windows in the US and off shore in China. This allows each company to maximize their core competency. PHS intends to have the patented product to be manufactured at a significantly lower cost, and yet increase the overall quality. Even with the additional cost of shipping, the expected cost savings from offshore production is 40% less than current production.

The products produced by Al-Vent will also be introduced into the subsidiaries owned by the Company in Florida & South Georgia as well as the regional offices that will be opened in Atlanta and Dallas\Fort Worth in 2007.

PHS intends to manufacture at Al-Vent's facilities, as well as offshore, a complete line of patented sunrooms, which will be offered in more diverse geographic areas than the markets for hurricane windows and doors. Since 85% of a sunroom design consists of windows, screens and doors, which the Al-Vent existing equipment can manufacture, the line extension to produce sunrooms will provide an excellent line extension and will not cause a disruption in the manufacturing process. PHS estimates that its present offices in four states will be able to sell a minimum of $1,400,000 of sunrooms in 2007.

Danny Smith, CEO of Packaged Home Solutions, Inc., in explaining how the acquisition makes sense in relation to the overall PHS expansion plans, stated: "Al-Vent is proving to be a great acquisition because we not only own the patents and manufacturing rights to the best Hurricane Window and Door available in the market...but also can gain additional traction by offering private label products such as windows, doors, sunrooms & four season rooms to our current group of companies and our future acquisitions of remodeling and installation companies. We will cross-market the acquisition's various proprietary products through the existing customer base of PHS, its future customer base, plus the customer base of each acquisition. Considering that little if any marketing has ever been done with Al-Vent -- we feel strongly that we will enhance the gross revenues of Al-Vent, by a minimum of 70% in 2007."

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 offices located in Cincinnati and Dayton Ohio, Indianapolis, Indiana, Jacksonville, FL & South Georgia. The Company's intention is to open a regional office in Atlanta, Dallas, Phoenix, Denver and Southern California prior to the year's end. 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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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