American Homestar Acquires Additional Interests in Platinum Homes LLC.

HOUSTON -- American Homestar Corporation (Pink Sheets: AHMS) today announced that it has acquired an additional 65% interest in Alabama-based Platinum Homes, LLC. American Homestar was a founding member of Platinum in January 2006, with an initial 25% interest. It now owns a total of 90%.

American Homestar Chief Executive Officer, Finis Teeter, said, "We are enthusiastic about this strategic opportunity for a number of reasons. In addition to Platinum's very experienced management and staff, its 200,000-square-foot plant adds substantial production capacity in an important new regional market for us. We now have more capacity to supply the needs of independent dealers, builder-developers and our pilot program with The Home Depot. The acquisition allows American Homestar to serve several new states like Mississippi, Alabama, Tennessee, Georgia and northern Florida. With our existing South Central operations and heightened focus on the Gulf Coast recovery, Platinum is a great geographic fit, while the financial, marketing and systems support we provide will make Platinum a much stronger competitive force in its market area."

American Homestar produces modular and HUD-code factory-built homes from its two plants in the Dallas/Ft. Worth area and, now, from its majority-owned Platinum Homes plant in Lynn, Alabama. In addition, the Company operates 28 retail locations in Texas, Louisiana and Oklahoma and provides financing, insurance and transportation services to its customers.