May 31, 2007, Dallas, TX - (Business Wire) - Home Solutions of America, Inc. (NASDAQ: HSOA; the “Company” or “Home Solutions"), a provider of recovery, restoration and rebuilding/remodeling services, announced today that its Fireline Restoration, Inc. subsidiary ("Fireline") has been awarded a contract valued at approximately $100 million to provide construction management, general contracting and development services for a 600,000 plus square foot retail center and corporate office site located in Hillsborough County, Florida. The project is being developed by a Tampa Bay-based real estate development firm. Fireline is expected to complete approximately $10 million in work under the contract this year, which was not included in the Company’s previously announced backlog. Preliminary engineering and site work is expected to commence during the latter part of the third quarter. The project is anticipated to be completed over a 30-48 month period.
“We are pleased to have been selected for another major construction management project,” said Brian Marshall, President of the Company’s Restoration and Construction Services Division. “This contract to provide services for the development of a large mixed-use property represents the second major construction project we have been selected for this month. These contracts demonstrate that our efforts to diversify our mix of business to a more stable and predictable revenue base are yielding results.”
Recently, the Company announced that it had entered into a joint venture agreement with Blue Diamond Construction, Inc., a New York-based construction management firm, to provide construction services to Blue Diamond in connection with the development and construction of 339 residential condominiums and 160,000 square feet of mixed use retail space located in the boroughs of Brooklyn, Manhattan and Queens, New York. The value of the Blue Diamond contracts to Fireline exceeds $100 million.
About Home Solutions of America, Inc.
Home Solutions of America, Inc. is a provider of restoration, construction and interior services to commercial and residential customers. Its Fireline subsidiary is involved in providing construction services, rebuilding, catastrophic storm response and contents restoration for commercial, industrial and residential properties. Based in Tampa, Fireline is certified in multiple aspects of the restoration industry, including smoke, fire, water and mold. The Company has operations in California, Texas, Florida, Alabama, Georgia, Louisiana, Mississippi and North Carolina. Home Solutions Restoration of Louisiana, Inc., which does business as Associated Contractors ("Associated"), is a Louisiana based commercial, industrial and residential contractor working in the governmental and private arenas. Associated has been one of the larger players in redeveloping public schools in the aftermath of Hurricane Katrina. Its clients include the State of Louisiana, the City of New Orleans, the Louisiana National Guard, the historic French Market, Louis Armstrong International Airport and the N.A.S.A. Stennis Space Center in Mississippi. For additional information, please visit the Company’s Web site at http://www.hsoacorp.com.
Cautionary Notice
This press release contains forward-looking statements made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws. Such forward-looking statements are based on the beliefs of our management as well as assumptions made by and information currently available to them. The Company has no obligation to update such forward-looking statements. Actual results may vary significantly from these forward-looking statements based on a variety of factors. These risks and uncertainties include our future financial performance, business prospects, ability to win new contracts, our performance under existing contracts, the timing of completion of projects, as well as our future revenues and our ability to collect accounts receivable. In addition, there can be no assurance that the actions taken or to be taken by the Company as described herein will result in increased revenues. Other important factors are described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2006 in the section entitled “Risk Factors”.
