Packaged Home Solutions (fka PKGH)

[Mr. Zen]

Packaged Home Solutions Subsidiary Announces an Agreement With Marketing Firm to Install Products Exclusively for Major Home Products Retailer
Initial Rollout Expected to Generate $1.5 Million in the Next 12 Months
Jun 29, 2007 9:00:00 AM
CINCINNATI, OH and JACKSONVILLE, FL -- (MARKETWIRE) -- 06/29/07 -- Packaged Home Solutions, Inc. (PINKSHEETS: PKGH) (www.packagedhomesolutions.com) ("PHS" or "the Company") announced today that its subsidiary, Southeastern Renovations ("SER"), has agreed to terms with Bildtec, Inc., a Houston-based national retailer of residential product and installation services. The agreement outsources to SER Bildtec's installations and warranty services, which Bildtec has been providing on an exclusive basis to a major national retailer of home products in over 120 locations throughout the U.S.

SER's Installation Division, headed by Chuck Horne, a former Lowe's senior executive in charge of installed sales, is providing similar estimating and installation services for other national retailers. This new contract will allow the Installation Division to achieve further market growth in its existing markets, as well as new market openings that fit into the Company's current regional market expansion strategy.

After many weeks of negotiations, Bildtec chose to outsource all of its installations and warranty work conducted on behalf of this national retailer to SER as a result of the proven operational experience of both SER's lead management as well as the company's historical performance. PHS projects to implement the SER-Bildtec relationship in 5-8 locations initially, forecasting approximately $1.5M in gross revenue over the next 12 months from these 5-8 stores involved in the initial rollout. Expected gross profit margins should exceed 25%. After the initial rollout is completed, SER will continue to service additional locations and markets for Bildtech.

Packaged Home Solutions Chief Executive Officer Todd Medina commented, "We are extremely pleased with the relationship which we are developing with Bildtec. As we expand into a market area to handle the needs of Bildtech, we will also be bringing into that market our other products and services. However the installation-only services that we are providing to Bildtec and other national home improvement retail chains gives us a base of income and profits on which to build our other operations. The installation-only services area allows us to ramp up much quicker than we had originally planned. This relationship with Bildtec will positively impact our 3rd Quarter Revenues, which we will publicize in early October. Most exciting are the long-term possibilities, in that stores such as these can easily generate $250K annually per store in installed sales. The potential, given the number of stores, is astronomical. This not only provides huge potential growth and return for our shareholders, but it is a stable and secure model that allows us to broaden our coverage areas, while enhancing overall revenues through the cross marketing of other products and services offered by our other PHS subsidiaries."

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 U.S. 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.

The Company's subsidiaries, Al-Vent Architectural Products Inc. and PHS Wholesale Inc., focus of providing hurricane windows and doors and general home improvement products manufactured in China. SER, another subsidiary of the Company, focuses on providing installations services directly to homeowners and large national home improvement retailers. By the end of 2008, the Company plans to have 30 operational offices, making it one of, 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.

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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.

Contacts:

Packaged Home Solutions:
Todd Medina
904-735-6092