SOURCE: U.S. Dry Cleaning Corporation

September 25, 2007 08:00 ET

U.S. Dry Cleaning Corporation Issues Company "Roadmap" Outlining Growth Strategy

PALM SPRINGS, CA--(Marketwire - September 25, 2007) - U.S. Dry Cleaning Corporation (OTCBB: UDRY) ("U.S. Dry Cleaning"), the first mover in consolidating the nation's dry cleaning industry, has issued the following "roadmap" summing up the achievements of the last three months and outlining the U.S. Dry Cleaning's strategy for growth and development for the coming year.

The letter has been mailed to all shareholders of record as of September 21, 2007. It is available on the U.S. Dry Cleaning's Web site www.USDRYCLEANING.com, under "Investor Relations" and is being filed with the U.S. Securities and Exchange Commission as a Current Report on Form 8-K. The document can also be accessed by going to www.CFSG1.com and clicking on the U.S. Dry Cleaning logo.

U.S. DRY CLEANING ROADMAP: PERSPECTIVES FOR 2008

PALM SPRINGS, Calif., September 21, 2007

Dear Shareholders:

U.S. Dry Cleaning Corporation (UDRY) has made great progress in our plans to become the "first mover" in consolidating the dry cleaning industry. This letter sums up the strides we've made in the last three months and offers you a view of our plans going forward for 2007 and 2008.

I also urge you to go to our Web site (www.usdrycleaning.com) to stay abreast of new developments. In the near future, we will post a chart to show you how our Company's financial status compares to the early stages of previous successful historic consolidations such as Blockbuster, Inc. (BBI), VCA Antech, Inc. (WOOF), and Waste Management, Inc. (WMI). I think you will be impressed.

Achievements since June 2007:

--  Initial Public Offering, which raised $6.1 million, completed June 19,
    2007.
--  Trading on the OTCBB under the symbol UDRY began August 30, 2007.
--  Highly experienced Chief Financial Officer appointed. Announced on
    September 4, 2007.
--  Record Revenue for Quarter ended June 30, 2007 reported on September
    6, 2007.
--  Definitive purchase agreement signed for UDRY's fourth acquisition -
    the Number 1 dry cleaning business in California's Central Valley adding
    $6.5 million to our existing $10 million annualized run rate. Announced
    September 11, 2007.
    

Going forward, our plans are clear. Our business strategy is to rapidly acquire profitable companies that are Number 1 in their markets and generating more than $5 million in annual revenues. Our current acquisition, when finalized, will bring our annualized run rate to just under $17 million, nearly triple that of 2006. We have identified many more candidates in major markets across the continental U.S. and we are in advanced negotiations with them. Our short-term goal is to bring our annualized revenue run-rate to $50 million by mid 2008, subject to our obtaining new capital for expansion.

Our management team is highly experienced in retail consolidation and we believe that the "first mover" consolidating any market is able to acquire market-leading businesses at the most favorable prices, ahead of potential competition. We believe it is the early stage of consolidation that reaps the greatest financial rewards for all parties. We think our recent achievements testify to that belief and our momentum will increase as planned in the coming year.

While the dry cleaning industry has long been dominated by small, private, geographically diverse operations, it earns revenues estimated at over $9 billion annually. As second and third generation operators seek greater returns on their businesses, consolidation becomes a logical and timely strategy. Tom Jones (who operates our current acquisition candidate) stated when our agreement was announced: "My family and I are very pleased to join U.S. Dry Cleaning Corporation in creating the first national chain of premier dry cleaning businesses in the United States. We believe that, with the added corporate resources provided by U.S. Dry Cleaning, our company can take full advantage of the rapid residential and business expansion in this region and will continue to be number one in a large and growing market. In addition, U.S. Dry Cleaning's strategy will provide a new level of service and responsibility to our community and new opportunities for our employees."

U.S. Dry Cleaning management has commenced dialogue with other market leaders who would seamlessly integrate into UDRY's business model. Together, these potential acquisition candidates have more than $200 million in profitable revenues. In addition, we have been steadily building relationships within the financial industry to help fuel that growth. Most importantly, we appreciate the support of all our shareholders as we begin to execute our strategy and reshape the landscape of an old line industry.

What follows is a roadmap of our projected milestones for the coming year.

Priorities:

     1.  Substantially increase revenues

         As stated earlier, we plan to expand exponentially over the next
         year. This will be accomplished by executing acquisitions that
         have already been identified by management, as discussed above,
         subject to our obtaining new capital for expansion.

     2.  Materially increase 4-wall (single-store) EBITDA

         For retailers, the purest measure of operating performance is
         "4-wall (or single-store) EBITDA" (Earnings Before Interest,
         Taxes, Depreciation, and Amortization). The companies that we plan
         to acquire will agree to create meaningful increases to their
         4-wall EBITDA, thus enhancing the overall profitability of each
         operation.

     3.  Increase same-store sales by 5%.

         In the retail industry, there is one widely followed metric that
         demonstrates whether existing operations are growing or
         contracting: Same Store Sales. UDRY's aim is to ensure that each
         acquired company produces same-store sales growth in excess of 5%.
         The cornerstone of a solid operator is the ability to consistently
         increase the revenues of an existing operation over time. UDRY
         commits to accomplish this through excellent customer service,
         strategic marketing, and expansion of revenue streams.

     4.  Efficiently assimilate acquisitions

         The speed and ease with which acquisitions are folded into UDRY's
         existing platform is crucial to our growth trajectory and foothold
         as the first industry consolidator. Management intends to
         assimilate its acquisitions into the existing infrastructure
         within the relatively short timeframe of 3 quarters. We will
         accomplish this by paying strict attention to developing common
         procedures and having a scalable information technology and
         reporting platform. Quick assimilation of acquisitions will allow
         management to focus on additional acquisitions as well as
         enhancing the performance of the operations acquired.

     5.  Provide Superior Customer Service

         In a consumer services business, our employees are the critical
         interface with our customers. To assure the best customer
         experience, UDRY intends to increase the quality, productivity,
         benefits and pay of our labor force, yet achieve a lower
         percentage cost of labor. We are focused on providing the best
         possible customer service.

     6.  Increase Shareholder Value

         This is our commitment to you -- the Shareholder. Our vision for
         the company is aggressive but not without precedent. In the near
         future we will post information in the Investor Relations section
         of our Web site (www.usdrycleaning.com) comparing our current
         overall enterprise value to the values that were obtained by such
         prominent companies as Blockbuster, VCA Antech and Waste
         Management, Inc. when they were initiating their consolidations as
         we are today. I believe you will see that our stock value is
         consistent with theirs in the early stages of their development.
         Our vision is to become the newest retail consolidator in America
         to create greater financial opportunity for hard working business
         people and the shareholders who support the company.

         To achieve this we are continually communicating with the
         financial community and brokerage firms whose knowledge and
         support of our company can help accelerate the value for
         shareholders. For up-to-date alerts on our news and progress,
         please go to our Web site, www.usdrycleaning.com, and sign up for
         our Newsletter.

As we advance our strategy to become the premier operator and consolidator of dry cleaning operations in the United States, we will enlist additional management expertise in operations, finance and acquisitions to support our growing size and scale. Further, we plan to implement an IT strategy and invest in the technology to increase our productivity and enhance UDRY's growth tomorrow and beyond. We would like to thank our customers, employees and shareholders for their patronage, support and belief in our Company.

Sincerely yours,

Robbie Lee

Robbie Lee
Chief Executive Officer
U.S. Dry Cleaning Corporation

CAUTIONARY STATEMENT FOR FORWARD-LOOKING STATEMENTS

Statements in this document contain information that includes or is based upon certain "forward-looking statements" relating to our business. These forward-looking statements represent management's current judgments and assumptions as of the date of this document. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts, and are frequently accompanied by the use of such words as "may," "will," "anticipates," "plans," "believes," "expects," "hopes," "strives," "feels," "projects," "intends," "seeks" and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, including without limitation, our ability to implement our growth strategy may be limited and, even if implemented, there can be no assurance that future acquisitions will not have a material adverse effect on our company's operating results; our anticipated continued growth will depend in part on our ability to open and operate new stores on a profitable basis; we have a limited operating history and if we are not successful in continuing to grow our business, then we may have to scale back or even cease our ongoing business operations; we have a history of net operating losses; there can be no assurance that we will be able to generate or secure sufficient funding to support our growth strategy; our success depends on our management team; competition for acquisitions could adversely affect our ability to continue our growth; and the expenses we incur to comply with environmental regulations, including costs associated with potential environmental remediation, may prove to be significant and could have a material adverse effect on our results of operations and financial condition.

We caution readers not to place undue reliance on forward-looking statements, which speak only as of the date of this document. Any one of these or other risks, uncertainties, other factors or any inaccurate judgments and assumptions could cause actual results to be materially different from those described herein or elsewhere by us. Certain of these risks, uncertainties and other factors are described in greater detail in our filings from time to time with the U.S. Securities and Exchange Commission, which we strongly urge you to read and consider, including the "Risk Factors" as set forth in our Final Prospectus dated May 14, 2007, and our Annual Report on Form 10-KSB for the fiscal year ended September 30, 2006, which may be accessed from our website at www.usdrycleaning.com. Subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above and elsewhere in our reports filed with the U.S. Securities and Exchange Commission. We expressly disclaim any intent or obligation to update any forward-looking statements.

CONTACT:
Rick Johnston, Director of Shareholder Communications
Tel: 760-668-1274
rick@usdrycleaning.com

About U.S. Dry Cleaning Corporation

U.S. Dry Cleaning Corporation's mission is to create the premier national chain in the dry cleaning industry. Over the last year and half, U.S. Dry Cleaning has completed acquisitions with combined annual revenues of over $9 million. U.S. Dry Cleaning combines a management team with extensive experience in retail consolidations and premier dry cleaning operations, with a proven operating model.

U.S. Dry Cleaning intends to rapidly acquire profitable, positive cash flow operations at accretive valuations. Each acquisition target is expected to be self-sufficient and field management is expected to remain in place to ease the assimilation. U.S. Dry Cleaning is focused on acquiring profitable businesses that hold a leading share in their individual markets.

U.S. Dry Cleaning management believes that the current absence of extensive competition to acquire the larger dominant operators will change as the industry consolidates. Management believes that the greatest value achieved in any consolidation occurs during the earliest phases and intends to grow as rapidly as possible to deliver shareholder value.

This release is provided for informational purposes only and should not be construed as a solicitation to invest. U.S. Dry Cleaning Corporation's future operation results are dependent upon many factors, including but not limited to: (i) U.S. Dry Cleaning's ability to obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) U.S. Dry Cleaning's ability to build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond U.S. Dry Cleaning's control; and (iv) other risk factors discussed in U.S. Dry Cleaning's periodic filings with the U.S. Securities and Exchange Commission, which are available for review at http://www.sec.gov/ under "Search for Company Filings."

In accordance with a December 5, 2006 agreement, Consulting For Strategic Growth 1, Ltd. ("CFSG1") provides U.S. Dry Cleaning Corporation with consulting, business advisory, investor relations, public relations and corporate development services. CFSG1 receives only restricted stock as compensation from U.S. Dry Cleaning. CFSG1 may also choose to purchase U.S. Dry Cleaning's common stock and thereafter liquidate those securities at any time it deems appropriate to do so. For more information please visit www.cfsg1.com.

Contact Information

  • Company Contact
    Rick Johnston
    Director of Shareholder Communications
    Tel: 760-668-1274
    Email: Email Contact
    www.usdrycleaning.com

    Investor Relations:
    Stanley Wunderlich
    CEO
    Consulting For Strategic Growth 1
    Tel: 800-625-2236
    Fax: 212-337-8089
    Email: Email Contact
    Web site: www.cfsg1.com

    Media Relations:
    Daniel Stepanek
    Consulting For Strategic Growth 1
    Tel: 212-896-1202
    Fax: 212-697-0910
    Email: Email Contact