November 15, 2006 (Dallas, TX) – Home Solutions of America, Inc. (NASDAQ: HSOA; the “Company” or “Home Solutions”), a provider of recovery, restoration and rebuilding/remodeling services, announced today that it has increased its bonding capacity by securing a $25 million revolving surety bonding program through AIG Environmental®, a division of the general insurance subsidiaries of American International Group, Inc. (AIG). The increased bonding capacity will afford the Company a competitive advantage in the bidding process as it pursues projects in Louisiana and other key markets.
“As we continue to expand our business, Home Solutions has acquired greater needs for bonding capacity, and the agreement with the AIG companies frees cash that normally would secure surety bonds on construction projects,” said Jeff Mattich, Home Solutions of America’s Chief Financial Officer. “This increased bonding line clearly assists our expanded role in these projects, as both the contractor and the labor provider. Coupled with our recently announced $60 million credit facility, Home Solutions is now uniquely positioned to compete aggressively as a major player in the region. We look forward to continuing our role in helping New Orleans and the Gulf Region rebuild their communities.”
About Home Solutions of America, Inc.
Home Solutions of America, Inc. is a provider of recovery, restoration and rebuilding/remodeling services to commercial and residential areas that are (i) prone to flooding, hurricanes, tornados, fires or other naturally occurring and repetitive weather related emergencies; and/or (ii) experiencing robust housing development. The Company has operations in California, Texas, Florida, Alabama, Georgia, Louisiana, Mississippi and South Carolina. For additional information, please visit the Company’s Web site at www.homcorp.com.
Cautionary Notice
Statements included in this update that are not historical in nature are intended to be, and are hereby identified as, “forward-looking statements” for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended by Public Law 104-67. Forward-looking statements may be identified by words including “anticipate,” “believe,” “intends,” “estimates,” “expect,” and similar expressions. The Company cautions readers that forward-looking statements including, without limitation, those relating to the Company’s future business prospects are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements, due to factors such as those relating to economic, governmental, technological, and other risks and factors identified from time to time in the Company’s reports filed with the SEC.
