SOURCE: Packaged Home Solutions, Inc.

January 23, 2007 09:00 ET

Packaged Home Solutions, Inc., Partners With GMCC Financial by Signing Cross Marketing Agreement

PHS Partners With GMCC Financial, an Agent for Global Mortgage, Inc., to Provide In-House Financing Programs for All PHS Clients

CINCINNATI, OH -- (MARKET WIRE) -- January 23, 2007 -- Packaged Home Solutions, Inc -- (PINKSHEETS: PKGH) -- -- ("PHS" or "The Company"), completed an industry first cross marketing program that provides an exclusive in-house financing program with GMCC Financial, an agent for Global Mortgage, Inc., which operates in over 37 States. GMCC Financial is a full service mortgage broker that has built a strong reputation for serving the lending needs of home owners, real estate professionals, and homebuyers nationwide. GMCC Financial, through its relationship to Global Mortgage, offers expertise in every area of lending -- from home improvement programs to purchase, refinance or construction lending -- as Global Mortgage is the one of the largest and fastest growing mortgage brokerage firms in the industry. As an agent of Global Mortgage, Inc., GMCC Financial is able to offer approved lending with more than 260 of the leading wholesale lenders throughout the United States.

Making affordable financing options available to homeowners wanting home improvements is a critical component of PHS business model. This key aspect will increase sales for PHS and its various subsidiaries, because GMCC Financial will be able to offer a finance program for virtually any type of credit homeowner that Packaged Home Solutions works with.

This innovative program was structured to provide easy access to future PHS clients to a variety of financing programs for the home improvement packages offered by PHS. PHS and GMCC Financial will expand this relationship to each market that Packaged Home Solutions has a regional branch or satellite office in and to the additional markets that PHS expands into in the future.

Through this value-added relationship, PHS benefits by receiving cross marketing opportunities for home improvement projects from past and future mortgage & refinance customers of GMCC Financial. The relationship with GMCC Financial has already produced 5 projects within the last month that PHS may not have gotten through its normal marketing channels.

Mr. Jim Cottington, President of GMCC Financial, stated, "The reason for PHS to team up with GMCC Financial makes good business sense for both companies. As an example, GMCC Financial will provide PHS with customized financing programs that offer 'Zero-Out-of-Pocket' Money Down to PHS clients. This will allow the homeowner to put $0 money out of pocket until the entire remodeling project is completed. We believe that a better strategic selling point for PHS is not to focus on selling $30,000 kitchen remodeling projects, but instead to give the homeowner the kitchen of their dreams based on 'SELLING' a small monthly payment option -- (example: they can get their dream kitchen for only $355 per month). Once the home improvement loan is in place and the project completed, the our GMCC Financial consultant will have earned the right to 'up-sell' the homeowner on decreasing their monthly outlay by consolidating his or her loan via a full range of finance sources dedicated to finding the right loan -- with the best rates, terms and costs -- to meet the clients' unique needs."

Some key points that will benefit PHS directly:

--  GMCC Financial will place one or more of their loan officers in every
    PHS branch & satellite office.
--  These GMCC loan officers will be an "in-house" finance specialists for
    PHS without the associated overhead expense.
--  The GMCC loan officers will aggressively market their financial
    services to homeowners outside of PHS clients who are considering
    refinancing and / or home buyers that need first mortgages, second
    mortgages, home equity lines of credit (HELOC) loans, debt consolidation
    loans, hard money loans, signature loans, etc.  Therefore, enlarging the
    potential customer base of PHS in each market.
--  Each client of GMCC Finance will be exposed to Packaged Home Solutions
    and their interior & exterior remodeling services.
In discussing this relationship with GMCC Financial, Mr. Mike Klieber, COO of PHS: "We look forward to developing a strong working relationship with GMCC Financial in all the markets that PHS is presently servicing and will be expanding into in the near future. We intend to build "win / win" relationships with GMCC Financial in order to gain additional exposure for PHS to other homeowners who may be considering improvements to their home, at less of a customer acquisition cost than the traditional advertising venues used in our industry. Although this is a first for both companies, it is an ideal relationship, since both companies have direct access to homeowners who want and need the products and services offered by our respective companies."

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 Cincinnati and Dayton Ohio, Indianapolis, Indiana, Jacksonville and Miami, Florida. The Company's intention is to open regional offices in Atlanta, Dallas, Denver, Phoenix, & Southern California in 2007, as well as opening additional satellite offices in Cincinnati, Indianapolis and Columbus. The Company also acquired Al-Vent Architectural Systems (Hurricane Window Manufacturer) and is exploring various acquisition opportunities to continue to vertically integrate its structure. The Company will be opening regional offices in 2007. 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