SOURCE: U.S. Dry Cleaning Corporation

January 25, 2008 11:58 ET

U.S. Dry Cleaning Reports Acquisition of Stock by Director, Following Purchases by CEO

PALM SPRINGS, CA--(Marketwire - January 25, 2008) - U.S. Dry Cleaning Corporation (OTCBB: UDRY) ("U.S. Dry Cleaning"), the nation's first consolidator of dry cleaning stores, announced today that Martin J. Brill, a Director of U.S. Dry Cleaning, has acquired 61,539 shares of the company's common stock at a price exceeding the per-share average market price of the stock on the date of acquisition.

Mr. Brill's transaction follows the purchase of 188,510 shares by the company's CEO, Robert Y. Lee, announced on January 23, 2008. Mr. Brill converted Series A Convertible Debentures in the amount of $80,000 into 61,539 shares of common stock at $1.30 each. The Series A Convertible Debentures were issued during the initial capital stages in December 2006. The transaction was reported to the SEC on Form 4 filed on January 10, 2008.

Mr. Brill stated, "U.S. Dry Cleaning is vigorously pursuing its ambitious business plan to be the first consolidator of the U.S. Dry Cleaning industry. Mr. Lee is a skilled strategist with a powerful vision. He has built an extraordinary acquisition pipeline of market-leading dry cleaning chains across the United States. I am confident that the company will meet its goals and see significant growth in 2008."

U.S. Dry Cleaning is the first publicly traded company in the country to consolidate the highly fragmented dry cleaning industry, estimated at approximately $9 billion by IBISWorld. The company to date has acquired three chains in Hawaii and Southern California with consolidated revenues of $10 million per year. It also has signed Definitive Purchase Agreements with two additional chains and Memorandums of Understanding with 3 other businesses, as announced on December 10, 2007. The five acquisitions, when completed, are expected to add $27 million in revenue to the company's growing revenue base. Following completion of these acquisitions, U.S. Dry Cleaning's annualized revenue is expected to total over $37 million. The company also has an extensive pipeline of further acquisition candidates. U.S. Dry Cleaning does not disclose where acquisition candidates are located. However, management indicated that these acquisitions, if completed, will expand U.S. Dry Cleaning beyond the current markets of Hawaii and Southern California, marking a significant step toward the company's goal of being the first nationwide premier dry cleaning chain.

The dry cleaning industry is extremely stable, with a history of surviving economic downturns, fads, changes in fashion, wars, depression and natural disasters. Market leading operations are highly profitable, maintaining a loyal customer base and solid operating margins. Most are family owned and are entering a phase where older proprietors and recent inheritors are seeking greater returns on their longstanding businesses. U.S. Dry Cleaning offers the multiple economic advantages of a nationwide public company.

About U.S. Dry Cleaning

U.S. Dry Cleaning Corporation's mission is to create the premier national chain in the dry cleaning industry. U.S. Dry Cleaning's management team has extensive experience in retail consolidations and premier dry cleaning operations with a proven operating model. The company 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 leading share in their markets. U.S. Dry Cleaning's 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 as a result, U.S. Dry Cleaning 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) the company's ability to obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) the company'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 the company's control; and (iv) other risk factors discussed in the company's periodic filings with the Securities and Exchange Commission, which are available for review at 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

Contact Information

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    Rick Johnston
    Director of Shareholder Communications
    Tel: 760-668-1274
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    Consulting For Strategic Growth 1
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    Daniel Stepanek
    Consulting For Strategic Growth 1
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