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Home Solutions of America Converts $2.2 Million in Debt to Equity Note Holders Express Confidence in Company Through Conversion at a Premium To Market HOUSTON, Dec. 18 /PRNewswire-FirstCall/ -- Home Solutions of America, Inc. , a niche provider of specialty residential services, announced today that it has converted $2.2 million in long term debt, incurred as part of the PW Stephens acquisition, into the Company's common stock. The Noteholders received 1.1 million shares of common stock, representing a price equal to $2.00 per share. In addition, the Company received an option to repurchase a separate PW Stephens seller note in the face amount of $1.5 million for a prepayment of $400,000 in cash. This option expires in January 2004. In June 2003, Home Solutions converted $2.2 million in debt to equity at $2.60 per share. If the Company exercises its option, Home Solutions will have retired approximately $6 million in debt in the last twelve months. "The conversion of an additional $2.2 million in debt to equity, at prices above market, will significantly enhance our balance sheet and simplify our capital structure," said Frank Fradella, Chairman and CEO of Home Solutions. "Our niche residential services strategy, including the recently announced Letter of Intent with the Florida specialty interior installation company, is taking shape. Furthermore, the opportunity to repurchase $1.5 million in debt for a cash prepayment of $400,000 will radically improve our balance sheet- reducing debt by approximately $6 million in the last twelve months. These actions, together with the planned closing of the Florida acquisition, will allow Home Solutions to rapidly grow its revenue base and quickly reach profitability within calendar year 2004." Home Solutions is a niche provider of specialty residential services including Restoration Services, Cleaning and Fabric Protection Services and Residential Renovation Sales. Home Solutions closed its first acquisition, PW Stephens, in November of 2002 and has subsequently closed two additional acquisitions in July 2003 as part of this strategy. In addition, Home Solutions currently has two letters of intent outstanding. 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: 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.hsoacorp.com/

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