Home Solutions of America Subsidiary Joint Venture Awarded $50 Million Government Restoration Services Contract.

Company Expected to Complete $15 Million in Work in 2007

DALLAS -- Home Solutions of America, Inc. (NASDAQ: HSOA; the "Company" or "Home Solutions"), a provider of recovery, restoration and rebuilding/remodeling services, announced today that its Fireline Restoration, Inc. subsidiary ("Fireline") is part of a joint venture that was awarded a $50 million contract to provide a wide range of engineering services to the Naval Facilities Engineering Command Southwest (NAVFAC SW). Work will commence at the beginning of April and will be supported by the new Fireline joint venture offices in Seattle, Washington. Home Solutions' portion of the work is $15 million, which is expected to be completed during 2007. The work is not included in the Company's previously announced backlog.

The joint venture between St. George Chadux Corporation (SGC), a Native American corporation, Fireline and a third contractor, will support the U.S. Navy's Installation Restoration Program (IRP) and the Base Realignment and Closure (BRAC) Program under the firm-fixed price, indefinite delivery/indefinite quantity contract. Under the contract, the joint venture will provide a wide range of engineering, environmental science, and other technical services at U.S. Navy and U.S. Marine Corps installations located primarily in the western United States. SGC have participated in a number of government contracts and has completed more than $600 million in work on government projects since 1989. Fireline will perform environmental and restoration services work at Naval and Marine Corps installations principally in California, as well as Arizona, Nevada, Utah, New Mexico, and other Department of Defense installations nationwide.

"We are pleased to work with St. George Chadux Corporation on this government contract," said Brian Marshall, President of the Company's Restoration and Construction Services Division. "We are beginning what we hope to be a long future on governmental projects, and are pleased that we were able to meet the high performance standards necessary to meet the Navy's requirements. Fireline is in the process of bidding on nearly $680 million of such opportunities in the next year that will potentially, if awarded, provide revenue opportunities over the next five years."

About St. George Chadux Corporation

St. George Chadux Corporation is a rapidly growing professional services company specializing in engineering and environmental services. St. George Chadux Corporation is an SBA-certified 8(a) Small Disadvantaged Business and Alaskan Native Corporation Owned Firm that specialize in providing cost-effective solutions for both commercial and government clients.

About Home Solutions of America, Inc.

Home Solutions of America, Inc. 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. 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 South Carolina. For additional information, please visit the Company's Web site at http://www.homcorp.com .

Cautionary Notice

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, contracts to be performed, and new opportunities associated with the anticipated rebuilding of the New Orleans area, 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.