American Renaissance Homes Addresses Misleading Internet Report

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."