August 24, 2006 (Dallas, TX) – Home Solutions of America, Inc. (NASDAQ: HSOA; the “Company” or “Home Solutions”), a provider of recovery, restoration and rebuilding/remodeling services, today announced, that its subsidiary, Home Solutions Restoration of Louisiana, Inc. (HSRLA) and a strategic partner have been awarded a contract valued at $5 million for restoration and rebuilding services in the historic French Market of New Orleans.
At 215 years old, the historic New Orleans French Market is billed as America’s oldest and best loved public market. Traditionally a favorite destination of tourists visiting the city, it remains a vibrant local market selling to both wholesalers as well as individual buyers.
“We are excited to see the continuance of project backlog associated with the rebuilding efforts in New Orleans and the surrounding Gulf Coast area,” said Frank J. Fradella, Chairman and Chief Executive Officer of Home Solutions and a New Orleans native. “This is one of many contracts in progress, just beginning to be serviced and still to be awarded for the post-Katrina rebuilding. Our work in the French Market represents additional work beyond our previously announced agreements. We continue to see clear indications of rapidly increasing work and billings for our rebuilding and restoration services in New Orleans and the surrounding areas, and we expect to announce additional contracts as we move through the year. More important is our relationship with Associated Contractors, LLC, who bid the project with HSRLA based on our project management skills as well as the financial strength of Home Solutions.”
Groundbreaking and ribbon cutting ceremonies for this marquee project will take place today at the French Market in New Orleans at 10:30 a.m. Attending will be the members of the City Council, the French Market Corporation, local and State elected officials, and the Office of the Mayor. Home Solutions Chairman and CEO, Frank Fradella, and Scott Sewell, Managing Partner of Associated Contractors, LLC will attend. Work will commence immediately after the ceremony.
“The restoration, renovation, and modernization of the Farmers Market Sheds are an integral part of the rebirth of the Riverfront of New Orleans. We plan to help preserve the heart and soul of the French Quarter by bringing the open air market back to its former glory,” said Sewell. “Associated Contractors is honored to receive this contract award for such a historic site together with our partner on this project, Home Solutions Restoration of Louisiana. This project adds to our current backlog of $15 million that we will share with HSOA. We continue to bid on additional meaningful projects with HSOA.”
About Home Solutions of America, Inc.
Home Solutions 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 through its five subsidiaries, Cornerstone Building and Remodeling, Southern Exposure, P.W. Stephens, Home Solutions Restoration of Louisiana and Fiber Seal Systems. Cornerstone is a leading supplier and installer of granite materials for kitchens and baths to national home centers, as well as national builders and remodeling companies, in the southeastern United States. Southern Exposure and related companies is a provider of cabinet and countertop installation services in the Florida marketplace. P.W. Stephens provides mold and asbestos remediation services, and fire and water restoration services in California, Florida and Louisiana. Home Solutions Restoration of Louisiana provides Recovery Restoration Services in Florida, Louisiana, Mississippi and Texas and Fiber Seal Systems is a national licensor of cleaning and fabric protection businesses.
For more information on Home Solutions, please see the Company’s website at http://www.homcorp.com/
About Associated Contractors, LLC
Associated Contractors, LLC is a Louisiana general contractor and one of the leading construction companies helping to rebuild New Orleans in the aftermath of Hurricane Katrina. S. Scott Sewell is the LLC’s managing partner. Mr. Sewell served in a variety of positions at the Secretarial level as an appointee of the last four Presidents and is a resident of New Orleans.
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, contracts to be performed, and new opportunities associated with the anticipated rebuilding of the New Orleans area , 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..
