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DALLAS, Sept. 15 /PRNewswire-FirstCall/ -- Home Solutions of America, Inc. (AMEX:HOM), a niche provider of specialty residential services, announced today that its newly formed subsidiary, Home Solutions Restoration of Louisiana, Inc., has signed an agreement with Florida Environmental Remediation Contractors, Inc. (FERS), a minority owned Pompano Beach-based restoration company, to initially provide 100 workers in the South Mississippi area to assist in the clean-up effort from those areas affected by Hurricane Katrina. The Company has also expanded in the Louisiana area, adding a new location in Mandeville, approximately 25 miles from New Orleans, which will serve as an initial base for work in the surrounding areas. As a result of the increase in work, which will initially involve removal of debris at many of the hurricane-affected locations prior to commencing restoration services, the Company today announced that it would discuss any impact on 2005 full-year guidance when it reports third quarter results for the period ended September 30, 2005 in early November. The Company previously expected to generate record 2005 full-year revenue of $57.0 to $61.0 million, EBITDA of $9.0 to $9.9 million, and fully-diluted earnings per share of $0.18 to $0.20. "Unfortunately, a series of natural disasters has created substantial opportunities for Home Solutions to provide its services to impacted areas," said Frank Fradella, Chairman and CEO of Home Solutions. "Last year's hurricanes in Florida continue to create more opportunities to provide our services. Hurricane Katrina has created far greater damage than occurred in Florida. We intend to respond to Katrina in the same way we did to last year's Florida disasters. FERS employees and P.W. Stephens, Inc., Home Solutions' restoration company, worked closely together last year in Florida and now FERS will be a key member in our Louisiana Group. We also expect P.W. Stephens, Inc., as well as our Fiber Seal of New Orleans franchisee, to participate as well. As a long-time resident of New Orleans who has personally been impacted by the devastation, I am committed to do everything possible to accelerate the recovery of this area." "We are pleased to work together with Home Solutions and their group in Louisiana," stated Fernando Nava, FERS President. "The enormity of the damage will take a very long time to clean up. With the time period to restore the area expected to be measured in years, not months, FERS is committed to work closely with Home Solutions to play an important role in rebuilding this area." 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. 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. CONTACT: Michael Wachs, CEOcast, Inc. PHONE: 212-732-4300 DATASOURCE: Home Solutions of America, Inc. CONTACT: Michael Wachs of CEOcast, Inc., +1-212-732-4300, for Home Solutions of America, Inc. Web site: http://www.homcorp.com/

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