American Renaissance Homes Addresses Misleading Internet Report.

NEW ORLEANS -- American Renaissance Homes (ARH), a provider of affordable modular housing, responded today to a posting on an Internet blog site characterizing information provided via a conversation with one of its officers. The posting, which purported to describe the Company and its relationship with Home Solutions of America, Inc. (Amex: HOM), contained significant distortions and misstatements.

ARH was recently created by group of 5 senior executives with broad experience in housing development including modular housing, banking and project finance, and architectural design. Three of the Partners have recently completed work for FEMA in New Orleans and St Bernard Parish working on long term recovery planning. Another Partner recently retired from HUD as an economic development and Community Development Block Grant specialist after a 4-month assignment in New Orleans working on disaster relief. The skills and background of the Partners has led them to the conclusion that the Southern Louisiana Region needs a well-organized and professional provider of viable housing solutions in the storm-ravaged areas.

The Internet blog posting distorted the nature of the short conversation it had with Alan Nazzaro, Chief Operating Officer of ARH. It omitted Mr. Nazzaro statements that ARH has negotiated an agreement with a modular home manufacturing company to be their exclusive provider of that company's products in St. Bernard Parish. Additionally, Mr. Nazzaro stated that "ARH has received a significant number of contacts from customers interested in purchasing homes and expects to receive its first orders shortly." ARH has also been actively involved in establishing the business infrastructure to support these activities, and has been working closely with officials in the St. Bernard Parish area.

The Internet blog site also distorted its conversation with Mr. Nazzaro on the Company's relationship with Home Solutions. The Internet report incorrectly either misunderstood or mischaracterized Mr. Nazzaro's comments regarding the relationship between ARH and Home Solutions. The newsletter claims that Mr. Nazzaro told the caller that Home Solutions owns 40% of ARH. This is false. Mr. Nazzaro was not a party in discussions with Home Solutions and was unaware of the details of the contractual relationship between ARH and Home Solutions of America at the time he made his comments. ARH has not agreed to provide an ownership stake to Home Solutions at this time. The Company is owned exclusively by the 5 member partnership. But, as part of the contractual agreement for assisting ARH with a loan up to $800,000 for working capital, ARH has agreed to make Home Solutions the exclusive provider of contracting and installation services for modular housing in New Orleans and surrounding areas. ARH believes that this relationship with Home Solutions provides ARH a strong competitive edge in its ability to deliver large number of modular homes throughout the areas devastated by Hurricanes Rita and Katrina.

"We are disappointed that an Internet blog site has chosen to distort a conversation that it conducted with someone who was not fully aware of the contractual status of the Home Solutions agreement and whose comments were distorted for unknown reasons," said Steven Richards, CEO of ARH. "We have worked hard, in a relatively short time period, to develop significant strategic relationships with major corporations that should make ARH the predominant modular home builder in this region in an effort to address the urgent unmet housing needs in New Orleans and the surrounding areas. As former FEMA employees, we have experienced first-hand the devastation that storms of this magnitude can create. We have received the support of local officials, secured the supply of modular homes and have been responding to interested customers from around the region, all in a very short time period. We are doing all we can to provide viable solutions to the enormous housing crisis in the Gulf Coast region where so many homes were under salty water for more than two weeks."

Richards further went on to say, "The business plan we are putting in place requires a great deal of work and planning before it can be implemented. ARH has made great strides in this effort and we expect to start selling homes very soon." ARH will have four model homes completed in St. Bernard Parish, one of the areas hardest hit by Hurricane Katrina, in early July and be fully engaged in sales and marketing at that time.

According to Mr. Richards, "It is unfortunate, that this Internet blog site, whose comments are mostly inaccurate and distorted and which has no address or telephone number, decided to use these distortions and misstatements to 'report' fiction as fact and malicious opinion as 'news'. This despite the fact that its owners are currently subject to litigation in courts in at least two states for defamation based on false, misleading and damaging allegations published on its site. We intend to evaluate and pursue all available legal remedies to protect our Company."