NANNACO, Inc. Signs Letter of Intent With Genie Services.

Business Editors

SAN ANTONIO--(BUSINESS WIRE)--Oct. 15, 2002

NANNACO, INC. (OTCBB:NNCO), today announced that the company has signed a letter of intent to acquire Genie Services of San Antonio, Texas. Genie Services is a full-service commercial and residential construction company that has been in business for seventeen years earning an excellent reputation as a preferred service provider in the South Texas region. Genie Services has consistently produced annual revenues of $1-2 million dollars, and is undertaking continuing projects with clients such as Johnson Controls, COSTCO, and the United States Veteran's Administration, in addition to its usual schedule of residential and commercial construction and remodeling.

"We believe that Genie Services is a perfect fit to become a member of the NANNACO, Inc. family of service providers," said Andrew DeVries, III, President and CEO of NANNACO. "Our initial service company, Surface Pro, has worked with Genie on several projects, and the synergy between us is obvious; I'm convinced that the merger of our capabilities will propel both divisions into even greater profitability," stated DeVries.

Genie Services has recently consolidated all of its South Texas operations into one centrally located facility in San Antonio. Genie owner Brian Muzny believes that this new location will greatly facilitate the company's growth due to higher visibility, expanded facilities for on-site construction of fabricated items, and centralization of management.

"Genie Services is the first of what we anticipate to be a long series of mergers and acquisitions," explained DeVries. "We want to build NANNACO into a parent corporation of wholly-owned subsidiaries in diverse markets, which will increase shareholder value over the long term. I feel fortunate that Brian and his organization are confident enough in this effort to place themselves at the forefront of NANNACO'S expansion process," added DeVries.

NANNACO, Inc., with its headquarters in San Antonio, Texas, is poised to become a holding company through the acquisition of like-minded entities in the service, manufacturing, retail, wholesale and finance sectors through the diversity of its subsidiary companies.

Statements in this news release that are not historical facts, including statements about plans and expectations regarding products and opportunities, demand and acceptance of new or existing products, capital resources and future financial results are forward-looking. Forward-looking statements involve risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from those expressed. These uncertainties and risks include changing consumer preferences, lack of success of new products, loss of the Company's customers, competition and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission.