Home Solutions of America Receives Request from NASDAQ for Additional Information.

DALLAS -- Home Solutions of America, Inc. (AMEX: HOM), a provider of recovery, restoration and rebuilding/remodeling services, announced today that there will be a delay in listing its common stock on the NASDAQ National Market, due to the time it will take NASDAQ to review additional information provided by the Company last week. In the interim, the Company's common stock will continue to trade on the American Stock Exchange ("AMEX") under the symbol HOM.

"We understand the NASDAQ's request for additional information, which we have provided them on a timely basis," said Frank J. Fradella, Chairman and CEO of Home Solutions. "We expect the information we sent them will enable the listing process to move forward expeditiously, and will allow investors to again focus on the fundamentals of the business. Should the NASDAQ request additional information, we intend to respond promptly."

On June 12th, the NASDAQ Staff approved the listing of the Company's stock, which was to have become effective with the commencement of trading on June 27th (see Form 8-K http://www.sec.gov/Archives/edgar/data/855424/000100329706000260/ ex991.htm which contains a copy of the Letter from the NASDAQ). (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

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 provider of cabinet and countertop installation 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.