SOURCE: Packaged Home Solutions, Inc.

October 10, 2006 09:00 ET

PHS Home Services, Inc. Formed With the Goal to Increase Market Penetration and Recognition of the Packaged Home Solutions Brand Name

PHS Home Services Introduces the "Designed to Sell" Inspection & Evaluation Program, Which Includes Financing Improvements Needed to Increase the Value and Shorten the Time to Sell Homes

CINCINNATI, OH -- (MARKET WIRE) -- October 10, 2006 -- Packaged Home Solutions, Inc. (PINKSHEETS: PKGH) -- ("PHS" or "The Company"), which announced last week its entry into the public market, is today announcing that it has formed PHS Home Services, Inc. ( as a subsidiary. This subsidiary has introduced an innovative "Designed to Sell" (DTS) package of services for selling homeowners to increase the value on sale and time to sell their homes.

PHS Home Services has completed a 6-month test market on a package of services targeted to assist homeowners to properly prepare their homes to sell faster and at a higher price based on the current soft market conditions. Today, PHS Home Services is unveiling its "Designed to Sell" (DTS) Inspection & Consultation Services to professional Real Estate Agents, Brokers and the For Sale by Owner (FSBO) community. The "Designed to Sell" Inspection & Consultation Service is FREE to qualifying homeowners. However, the innovative DTS package of services generates substantial fees to PHS Home Services when the homeowner implements the recommendations targeted to sell the home faster and for more money. In addition, a significant number of kitchen & bath updates will be generated for Packaged Home Solutions' Interior division, since the remodeling of kitchens and baths have historically proven to be the best improvements to help sell a house faster and create a higher resale value.

The new subsidiary associates itself with the leading home inspection companies in each market, as well as the leading real estate brokerage firms in order to offer a complete free DTS home analysis and evaluation. The DTS includes a pre sale home inspection to a selling homeowner as a prelude to marketing their home. Since normally, only a buyer orders a home inspection when the house is under contract, the free home inspection for the seller, prior to contract, is a quantum leap in services provided to homeowners. Furthermore, the Designed to Sell package of services is transportable to every market that PHS expands into -- and offers a value added service to generate core business for PHS -- with virtually no competition.

Brad Cousino, President of PHS Home Services Inc., stated: "When we started Packaged Home Solutions three years ago, our desire was not only to be the first national home improvement services company, but also to introduce totally unique approaches to the market. This is the first such program we are announcing, but it certainly will not be the last. There is a void in the market, which is the preparation of a home for sale, as opposed to reacting to a home inspection report commissioned by the buyer. In a soft real estate market, which we are presently in, our DTS program will inform each selling homeowner what they must do to make sure that their house sells at the highest value and in the shortest period of time. The DTS program also creates a marketing relationship in each market with seasoned home inspectors, real estate brokers and quality preferred service providers who provide repairs and improvements that are beyond the scope of the services provided by PHS. The DTS package of services allows us to penetrate each new market quicker and more effectively, which is vitally important to us, as we expand into 30 markets."

The Designed to Sell package of services is comprised of the following components:

--  Professional Home Inspection Companies: PHS Home Services interviews
    and then contracts with experienced, local home inspection companies in
    each market.  Each inspection company signs a marketing agreement to
    provide Pre Sale Home Inspections, a detailed written report and
    consultative service on behalf of PHS Home Services. The 10 to 25 page
    written report & evaluation includes professional recommendations, which if
    implemented, would position a home to sell faster and at a higher price
    resulting in a net gain to the homeowner.
--  Real Estate Professionals (Real Estate Agents / Brokerage Houses):
    Meetings are set with local real estate agents to explain the "Designed to
    Sell" program. The real estate agents recognize the value of the Designed
    to Sell Inspections & Evaluations (DTS) especially now that it is a
    "buyers" market.
--  Zero "Out-of-Pocket" Financing Program Provided: Homeowners who have
    positive equity qualify to have the recommended DTS improvements made on
    their home and not pay anything until the home sells. If the house does not
    sell in the 120 to 180 day period after the improvements have been
    completed, the loan is then amortized over three to five years.
--  Preferred Service Providers: 98% of buyers' home inspections come back
    with various items that need to be corrected. PHS Home Services, with the
    assistance of local home inspectors, assembles a "swat team" of local
    Preferred Service Providers (PSPs) so that homeowners have a list of PSPs
    to choose from to assist in getting their houses ready to sell.  PSPs cover
    the following categories; Roof, Chimney & Brick Repair, Gutters, Windows &
    Siding, Entry Doors, Landscaping, Electricians, Plumbers, HVAC, Handymen,
    Foundations, Carpet, Flooring, etc. The PSP pays a Referral Marketing Fee
    to PHS Home Services, thereby generating additional bottom line income for
    PHS. This mutual relationship generates "cross marketing" opportunities
    with PSPs who have customers that want kitchen & bathroom remodeling work.
--  Packaged Home Solutions Kitchen & Bath: A targeted "client" base for
    Packaged Home Solutions' concept is "remove & replace" kitchens and baths
    in older homes that were built prior to 1995 with a value of greater than
    $100,000.  The ultimate reason the "Designed to Sell" package of services
    was created because it targets an ideal customer base for PHS. PHS directly
    benefits when the DTS program involves a home that is in good condition,
    but due to age of the home, has dated kitchen or bathrooms.  It is proven
    that a new kitchen or bathroom will help sell a home better than any other
    improvement -- and often get 100% of the money back. These demographics
    also represent tens of thousands of homes that are either on the market, or
    soon to be on the market to be sold.
--  Professional Home Staging Option: If the recommended Designed to Sell
    work is completed by PHS Home Services Preferred Service Providers or
    Packaged Home Solutions, then PHS Home Services will provide a professional
    home stager that will make final preparations to prepare the home for the
    sale process.
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 $500,000, 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 (2) and Miami, Florida. The Company's intention is to open a regional office in Tampa, Florida prior to the year's end, as well opening additional satellite offices in Cincinnati and Miami. The Company will be opening 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 end of 2007, 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.

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