Home Solutions Of America Inc fka HSOA

[eastunder]

Home Solutions of America Updates New York Projects

Thursday , September 06, 2007 13:06ET

DALLAS, Sep 06, 2007 (BUSINESS WIRE) -- Home Solutions of America, Inc. (Nasdaq: HSOA, the "Company" or "Home Solutions"), a provider of restoration, construction and interior services to commercial and residential customers, provided an update on the transactions that its Fireline Restoration, Inc. subsidiary ("Fireline") announced on May 18, 2007 in connection with entering into a joint venture agreement with Blue Diamond Group, Corp. ("Blue Diamond Group"), a New York-based construction management firm. The joint venture, Blue Diamond Ventures, LLC ("Blue Diamond Ventures"), intends to develop and construct approximately 339 residential condominiums and approximately 160,000 square feet of mixed use retail space located in the boroughs of Brooklyn, Manhattan and Queens, New York. The aggregate revenue to Fireline under the joint venture is expected to exceed $100 million. Fireline is expected to complete and recognize revenue of approximately $12 million in work by virtue of its ownership in the joint venture this calendar year.

Construction on the first project, N6th Street, is currently underway. This project includes ground up development of 44 residential condominiums located in Brooklyn at 142 N6th Street. The construction contract for this project between the owner of the property and Blue Diamond Ventures, is expected to generate $15.6 million in construction services revenue to Fireline during the life of the project. Work currently underway at the property includes excavation and foundation work.

The second Blue Diamond Ventures project, located in Queens, New York, involves the joint venture providing manager/contractor services for the project. The proposed project will be located on approximately a two-acre parcel and under current plans will involve the construction of a 350,000 square foot mixed use development that is expected to generate a minimum of approximately $85 million in revenue to Fireline's interest Development work under the project began during the 2007 third quarter and initially includes pre-construction and development services. Blue Diamond Ventures is in the process of obtaining the necessary zoning and engineering approvals and pursuing other pre-construction activities. The project is expected to be completed between the 2009 fourth quarter and the 2010 third quarter. The project is subject to certain conditions including, but not limited to, zoning and financing and other conditions customary in for projects of this nature.

The third Blue Diamond Ventures project is located on the Upper East Side of Manhattan and is anticipated to generate revenue to Fireline's interest of approximately $38 million. Blue Diamond Ventures is currently in advanced stages of negotiations with the project owner and is expected to provide construction management services, including new construction of a 20-story mixed-use building. The joint venture has secured a bonding commitment letter for the availability of $40 million bonding capacity to cover the work that would be performed on this project. Work is expected to commence during the fourth quarter of 2007 and be completed during the winter of 2008. The project is subject to certain conditions including, but not limited to, the issuance of the final bond and finalization of the contracts related to work to be performed and other conditions customary for projects of this nature.

"Since announcing the joint venture in mid-May, we are pleased by the progress we have made in advancing many of the tasks required during the early stages of large construction projects," said Brian Marshall, President of the Company's Restoration and Construction Services Division. "Construction has resumed on the property in Brooklyn, and our joint venture with Blue Diamond has made progress in zoning, engineering and site work in Queens. Although Fireline has not completed projects of this size in New York, as a private company it completed a condominium project of over 1,500 units and four clubhouses, another condo community of 246 units and clubhouse, as well as several other condominium and commercial projects. Rick Holowchak, the President of Blue Diamond, has extensive development and construction experience in both commercial and residential properties in the tri-State New York area, giving us the experience and confidence to complete these significant projects in the New York market."

Completion of these projects is subject to certain conditions including, but not limited to zoning, financing, bonding, permitting, contracts relating to work to be performed and other conditions customary for projects of this nature.

The Company expects to hold a conference call to update investors on these projects and other corporate developments on Thursday, September 20th. Details on the conference call will be provided at a later date.