Home Solutions Comments on Relationship With American Renaissance Homes.

DALLAS -- Home Solutions (AMEX: HOM), a provider of recovery, restoration and rebuilding/remodeling services, commented today on its relationship with American Renaissance Homes (ARH), a provider of affordable housing. On May 23rd, the Company announced through a press release that it had been

awarded a contract by ARH. The Company has assumed, for purposes of its 2006 business outlook, that this relationship will generate $5 million in revenue, largely in the fourth quarter, representing a small portion of its 2006 financial guidance of revenue of $160 million to $165 million as ARH is a start-up company. In addition, Home Solutions has entered into an agreement with ARH, under which it would loan up to $800,000, upon ARH meeting certain performance criteria, to support ARH's working capital requirements, secured by ARH's ownership in modular homes and land. The parties have been in discussions regarding Home Solutions taking an ownership position in the Company, but no agreement has been consummated and Home Solutions does not, at the present time, have an ownership stake in ARH.

"We believe this relationship is very strategic for the Company, and as the rebuilding of New Orleans accelerates it will, in future years, become a more important component to our revenue base," said Frank J. Fradella, Chairman and CEO of Home Solutions. "The demand for affordable housing is expected to be significant, however, we have anticipated that much of that work will contribute to 2007 results."

Currently, many New Orleans area residents live in 200 square foot trailers provided by FEMA. ARH will provide homes between 1,200 and 2,300 square feet at a fraction of the cost of construction in the area, which is currently approaching $150 per square foot.

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 manufacturer and installer of cabinet and countertop 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.

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.