Home Solutions Withdraws Nasdaq Appeal.

DALLAS -- Home Solutions of America, Inc. (NASDAQ: HSOA; the "Company" or "Home Solutions"), a provider of restoration, construction and interior services to commercial and residential customers, announced that it has withdrawn its appeal to remain listed on the Nasdaq National Market and as a result its Common Stock would be delisted from the Nasdaq Stock Market effective with the opening of trading on January 7, 2008. The Company expects its shares will be eligible for quotation on the Pink Sheets Electronic Quotation System. Home Solutions expects its common stock will continue to trade under the ticker symbol HSOA.

On November 21, 2007, the Company announced it had received a Nasdaq Staff Determination indicating that its failure to timely file its Form 10-Q for the quarter ended September 30, 2007 with the Securities and Exchange Commission amounted to a failure to comply with a requirement under Nasdaq's Marketplace Rule 4310(c)(14) for continued listing. The Company requested a hearing before a Nasdaq Listing Qualifications Panel to appeal the Staff Determination and such hearing had been scheduled for January 10, 2008.

On November 9, 2007, the Company filed, on Form 12b-25, a Notification of Late Filing of the Quarterly Report. On November 14, 2007, the Company announced that it would further delay the filing of the quarterly report past the extended filing deadline. The delay in filing is due to a previously announced ongoing audit committee investigation into related party transactions and other matters. In addition, on December 14, 2007, the Company announced that it and its auditors had concluded that the Company's financial statements for the first two quarters of 2007 need to be restated and should no longer be relied upon. The Company is working diligently with the Audit Committee to complete the investigation and to file all required reports as soon as practicable.

About Home Solutions of America, Inc.

Home Solutions of America, Inc. is a provider of restoration, construction and interior services to commercial and residential customers. Its Fireline subsidiary is involved in providing construction services, rebuilding, catastrophic storm response and contents restoration for commercial, industrial and residential properties. Based in Tampa, Fireline is certified in multiple aspects of the restoration industry, including smoke, fire, water and mold. The Company has operations in California, Texas, Florida, Alabama, Georgia, Louisiana, Mississippi and North Carolina. Home Solutions Restoration of Louisiana, Inc., which does business as Associated Contractors ("Associated"), is a Louisiana based commercial, industrial and residential contractor working in the governmental and private arenas. Associated has been one of the larger players in redeveloping public schools in the aftermath of Hurricane Katrina. Its clients include the State of Louisiana, the City of New Orleans, the Louisiana National Guard, the historic French Market and Louis Armstrong International Airport. For additional information, please visit the Company's Web site at http://www.hsoacorp.com.

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Cautionary Notice: This press release contains forward-looking statements made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws. Such forward-looking statements are based on the beliefs of the Company's management as well as assumptions made by and information currently available to them. The Company has no obligation to update such forward-looking statements. Actual results may vary significantly from these forward-looking statements based on a variety of factors. These risks and uncertainties include, but are not limited to, the Company's future financial performance, business prospects, ability to win new contracts, the performance under existing contracts, the timing of completion of projects, ability to secure bonding, ability to secure labor in markets where it does not have a labor force, performance of subcontractors and the ability to collect accounts receivable. In addition, there can be no assurance that the actions taken or to be taken by the Company as described herein will result in increased revenues. Other important factors are described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2006 in the section entitled "Risk Factors."