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Home Solutions Announces Record Second Quarter Results; Company Reports 143% Increase in Revenues and EPS of $0.02 DALLAS, Aug. 16 /PRNewswire-FirstCall/ -- Home Solutions of America, Inc. (AMEX:HOM), a niche provider of specialty residential services, announced today financial results for its second quarter ended June 30, 2004. The Company recorded second quarter revenues of approximately $7.4 million, a 143% increase versus $3.1 million for the year earlier period, and net income of $0.02 per share versus a net loss of $(0.02) per share for the 2003 second quarter. The Company generated $579,000 in net income and $1,098,000 in EBITDA (which includes $892,000 of operating income plus $206,000 of depreciation and amortization) in the 2004 second quarter versus a net loss of $(176,000) and $3,000 in EBITDA (which includes $(184,000) of operating loss plus $187,000 of depreciation and amortization) for the prior year's period. The Company generated 11% sequential revenue growth in the second quarter versus the first quarter. For the six months ended June 30, 2004, the Company recorded revenues of $14.1 million, a 102% increase versus $7.0 million for the year earlier period, and net income of $1,006,000 or $0.05 per share versus a net loss of $(162,000), or a net loss of $(0.01) per share for the six months ended June 30 2003. During this period, the Company generated $1,759,000 in EBITDA (which includes $1,336,000 of operating income plus $423,000 of depreciation and amortization) versus $288,000 in EBITDA (which includes $(25,000) of operating loss plus $313,000 of depreciation and amortization) for the same period in 2003. As announced on July 13th, Home Solutions has signed a definitive agreement to acquire a home warranty company in California. This acquisition is expected to close within the next few months but is subject to regulatory approvals and other conditions. "The results we generated for the first six months demonstrate that we are able to acquire and integrate niche residential services businesses," said Rick O'Brien, Chief Financial Officer of Home Solutions. "Each of our operating units performed extremely well during the second quarter, highlighting the strong demographic trends occurring in our current target markets of California, Texas and Florida. Upon completion of regulatory review and other related conditions, we believe the acquisition of RAM Home Warranty will create powerful cross selling opportunities in our existing markets. We expect to be able to sell home warranty service to many of our existing residential service customers and to market our existing services to our new home warranty customers." The Company's executives will hold a conference call to discuss these results and the business outlook. The conference call will take place at 4:30 PM EDT today. Interested participants should call (888) 554-9234 and reference Conference ID 9357189. There will be a playback available as well. To listen to the playback, please call (800) 642-1687. Please use conference ID 9357189 for the replay. The replay will be available beginning at 5:30 pm the day of the call and will be accessible for two weeks. The Company will also webcast the call. Investors may access the webcast by going to the Company's website http://www.homcorp.com/ . The webcast will be available until August 30th. Home Solutions is a niche provider of specialty residential services including Restoration Services and Specialty Interior Services. The Company has operations in the California, Texas and Florida markets and is rapidly growing its core business through both an internal and an acquisition strategy. For more information on Home Solutions, please see our 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. 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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