SOURCE: Packaged Home Solutions

March 28, 2007 09:00 ET

Packaged Home Solutions, Inc. Expands and Refines Projections for '07 and '08, Focused on Achieving $8MM Monthly Gross Revenue by July 2008

PHS Centralizing Operations, Dramatically Reduces Fixed Costs, Procures Substantial Funds for Acquisitions and Prepares for Marked Growth and Expansion Through Adjacent Market Acquisition Strategy and Geographically Broadening SER Subsidiary Installation Services to National Retailers

CINCINNATI, OH -- (MARKET WIRE) -- March 28, 2007 -- Packaged Home Solutions, Inc -- (PINKSHEETS: PKGH) -- www.PHSTeam.com -- ("PHS" or "The Company"), announced today the procurement of Substantial Investment Funds attained and allocated specifically for the Purpose of Safely Accelerating Growth through a Strategy of Adjacent Market Acquisitions as well as the Expansion of the Geographical Coverage Area currently provided to National Retailers by the PKGH Service and Installation Subsidiary Southeastern Renovations, Inc.

The Company has slightly modified its acquisition strategy to emphasize expansion through adjacent markets, first, beginning in the Midwest and Southeast Regions of the country, where they have a strong management presence. This allows the Company to more cost-effectively Cross-Manage the subsidiary network, while driving growth at a higher and more controllable rate, with subsidiaries able to share management and marketing resources with geographically adjacent companies within the PKGH Subsidiary Network.

After weeks of analysis, Senior Management and Outside Consultants determined that a model of regional growth toward national coverage made far more sense, financially and otherwise, than to sparsely cover the country from coast to coast, with the intention of uniting the major markets in a secondary phase through regional acquisitions. With expected acquisitions in March and April, the Company is projecting Monthly Revenues of close to $1MM by the end of June 2007, a substantial increase from the projected Q1 Revenues that will approach $1MM. With further acquisitions throughout the year, beyond those currently targeted, PHS is committed to reaching $8MM in Gross Monthly Revenues by January 2008, with a strong Net Profit return in the 15%-18% range.

Danny Smith, Chief Executive Officer of PHS, comments, "Once we refined our plans, investment sources became prevalent. An Adjacent Market Acquisition Strategy is not a complicated one. Fundamentally, every company within the Subsidiary Network is able to Enhance Revenues at virtually no fixed cost, while reducing their own fixed expenses, both made possible by the symbiotic relationship of their neighboring subsidiaries within the PKGH network and from the central support provided by the parent company."

Smith adds, "We knew that we could go out and drive this business to $100MM annually, but as we have gone through this process of analysis and debate, we realized that with some slight tooling we could get there virtually as quick, but in a far more manageable and profitable state, which just strengthens stockholder position."

Todd Medina, Chief Operating Officer of PHS, added, "At the end of the day that is where our responsibility is. We have pulled from our experience at the conglomerate level, ridding ourselves of their inefficiencies, identifying and embracing the industry niches that no one attacks, to realize a comfortable and profitable blend of the strengths offered by both big business and the successful American small business entrepreneur."

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 two primary regions of the country, the Midwest and the Southeast. The Company's intention is to open regions in adjacent markets to include the South, the Northeast, the Southwest and ultimately, the Western region. The Company also owns Al-Vent Architectural Systems (Hurricane Window Manufacturer) and is exploring various acquisition opportunities to continue to vertically integrate its structure. The Company will be expanding into these regions in 2007 establishing a subsidiary network of regional companies, adding 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
    772-219-7525
    http://www.wallstreetresources.net

    Packaged Home Solutions:
    Mike Klieber, COO
    513-733-1800
    888-818-4172
    www.phsteam.com