Packaged Home Solutions (fka PKGH)

[Mr. Zen]

Packaged Home Solutions Completes Entry Into Public Market as Part of Its Continuing Growth Strategy
Thursday October 5, 1:30 pm ET


Home Improvement Company Presently Operating in Four States Will Use Public Status to Complete National Expansion


CINCINNATI, OH--(MARKET WIRE)--Oct 5, 2006 -- Packaged Home Solutions, Inc. -- (Other OTC:PKGH.PK - News) -- www.packagedhomesolutions.com -- ("PHS" or "The Company") announced today the completion of its entry into the public market as it begins trading under the symbol "PKGH.PK." The multi-faceted home improvement company, with offices in Ohio, Indiana, Kentucky and Florida, elected to enter the public market in order to utilize publicly traded stock for various acquisitions that it will be announcing in the near future, as well as its desire to attract additional top tier management to support its planned national expansion.

PHS was formed in 2004 by executives with 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 $150,000 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 time, the management of the Company will consider various options to maximize shareholders' value, including a sale to an industry participant.

The Company should achieve gross revenues in 2006 of $5 million, and due to its national expansion, expects a substantial increase in gross revenues in 2007. Average gross profit margins exceed 45% with net profit margins of 15%, before consideration of expansion and acquisition costs. The Company will release its specific guidance for 2007 prior to the end of this year.

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FORWARD-LOOKING STATEMENTS

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.