SOURCE: Packaged Home Solutions

February 08, 2007 13:01 ET

Packaged Home Solutions, Inc. Subsidiary Announces Acquisition of South Georgia Home Improvement Company to Broaden Geographical Coverage Area and Further Expand Product and Service Offering

CINCINNATI, OH -- (MARKET WIRE) -- February 8, 2007 -- Packaged Home Solutions, Inc. (PINKSHEETS: PKGH) -- ("PHS" or "The Company") is today announcing that its direct subsidiary, Southeastern Renovations, Inc., ("Subsidiary"), has acquired Creative Exteriors, a Savannah, Georgia-based Home Services Company.

Creative Exteriors is a successful exterior home renovation company that has offered its customer base a multiple brand and product selection for several years. In addition, Creative has been a front-line vendor in the greater Savannah area for two National Home Improvement Retailers. Over the years, Creative has developed an impeccable reputation in the marketplace and is known by its clientele to provide a level of high quality exterior products, backed by an excellent customer service process and warranty record.

Creative Exteriors will be merged into the existing Southeastern Renovations network of niche markets and clientele, which offers to both their residential customers and those of their National Retailers', a full home product and service line covering a steadily growing geographical coverage area in the Southeastern U.S, coverage which now extends into South Carolina, Georgia and Florida. With the acquisition, the Subsidiary gains two more key managers and industry veterans that bring with them over 35 years of expertise, creating an even more well-rounded management team at Southeastern, which is already noted for their 100+ years of management experience, led by Officers with extensive Big Box Retail senior management experience at the national, divisional and regional levels.

As a result of the acquisition, the Subsidiary is projecting a 20% increase to their 2007 Projections, which were about $5MM in Total Revenue prior to the acquisition. Southeastern believes the acquisition will greatly impact overall Net Revenues, due to the fact that resources and fixed expenses will be merged and consolidated, reducing the cost of doing business, coupled with the huge opportunities that will be taken in the vital growth areas offered through cross-selling and geographical expansion of services and products.

Southeastern Renovations is an integral component of the PHS strategy of building a network of interrelated business entities in the Building and Trades industry that reduces costs by sharing resources and enhances revenues through cross-selling, as well as product and service expansion within the growing network of entities.

Dan Smith, CEO of the parent company, Packaged Home Solutions, states, "Southeastern's growth is an exciting and dynamic initiative within the PHS network. They are continuing to grow their business, picking up key managers, reducing costs as businesses are brought into the fold and building a strong and disciplined installation workforce. They run a lean company, from the top down, which sets the example for our companies. Southeastern continually demonstrates the ability to provide maximum return on investment and PHS will continue to support their efforts."

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 and South Georgia. 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 the 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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