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Home Solutions of America Enters Into Letter of Intent to Purchase California Marble Company Acquisition Expected to Add $3 Million in Annual Revenue and $500,000 in EBITDA and Expand Remodeling Services Offerings DALLAS, Aug. 1 /PRNewswire-FirstCall/ -- Home Solutions of America, Inc. (AMEX:HOM), a niche provider of specialty residential services, announced today that its wholly owned subsidiary, P.W. Stephens, Inc., has entered into a Letter of Intent to acquire a granite and marble fabrication and installation company in southern California. The acquired company, whose name will be released upon completion of a definitive agreement, is expected to generate $3 million in annual revenue and $500,000 in EBITDA. The acquisition will be financed with internally generated cash. The acquisition, which should be completed by the end of the current quarter, is expected to be accretive to earnings in 2005. Commenting on the transaction, P.W. Stephens' President Scott Johnson said, "This 'tuck-in' transaction affords the Company an opportunity to utilize its sales infrastructure and grow a business that complements our current service segment of assisting homeowners that have kitchen and bath related problems. In the more than 500 individual homes that we provide services, we look to add the replacement materials in the home. Granite, marble, and other products will be the beginning of those services." Chairman and CEO Frank J. Fradella added, "Southern California's remodeling market will become one of the largest in the United States in the next 5 years due to the lack of land to continue building new homes. This, combined with our knowledge of kitchen and bath products as a result of our Southern Exposure and Cornerstone operations, opens new opportunities for our three locations in California, where last year alone we provided services in over 6,000 different homes. The potential to add these products and services to our building material retail customers is also one of our long-term objectives as we continue to diversify our service offering. We expect this acquisition to be accretive to earnings in 2005." Home Solutions is a niche provider of specialty residential services including Restoration and Specialty Interior Services. The Company has operations in the California, Texas, Florida, Alabama, Georgia and South Carolina markets through its four subsidiaries, Cornerstone Building and Remodeling, Southern Exposure, P.W. Stephens 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 and Florida, and Fiber Seal Systems is a national franchise of cleaning and fabric protection businesses. For more information on Home Solutions, please see the Company's website at http://www.homcorp.com/ . 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. HOME SOLUTIONS OF AMERICA, INC. CONTACT: Cormac Glynn, CEOcast, Inc. Phone: 212 732 4300 DATASOURCE: Home Solutions of America, Inc. CONTACT: Cormac Glynn of CEOcast, Inc., +1-212-732-4300, for Home Solutions of America, Inc. Web site: http://www.homcorp.com/

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