SPRINGFIELD, Mo., May 12, 2006 (PRIMEZONE) -- Decorize, Inc. (AMEX:DCZ), a leading supplier and manufacturer of home accents, announced today that they have entered into an agreement securing a revolving line of credit of up to $750,000. Quest Commercial Finance, LLC will provide the line of credit which will be used for production expansion and marketing initiatives. The Company is experiencing an explosive increase in demand for its products which exceeds its current production capacity. With the additional capital the Company will double its production output. Steve Crowder, President and Chief Executive Officer commented, "We anticipate the increased production capacity combined with the dramatic rise in customer demand will position our Company to generate positive financial results in its fiscal year beginning July 1, 2006."
In conjunction with the financing, two shareholders converted $900,000 of debt into the 3,333,333 of the Company's common stock. "This financing with major shareholders is a strong vote of confidence in the improvements which have been implemented and the direction the Company is headed," said Brent Olson, Vice President of Finance.
About Decorize, Inc.
Decorize, Inc. has developed a sourcing and logistics model that reduces various costs that have traditionally been channeled into the home furnishings category. Decorize has served more than 2,000 small and large retail accounts, including national brand names such as Dillard's, Hancock Fabrics, May/Federated Stores, Neiman Marcus, Rooms To Go, and Sears -- The Great Indoors. Additional information on the company and its products can be found at http://www.decorize.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements about the future performance of Decorize, economic trends, and other forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including and without limitation, continued acceptance of Decorize's products, increased levels of competition for the company, new products and technological changes, Decorize's dependence on third-party suppliers, and other risks detailed from time to time in Decorize's periodic reports filed with the Securities and Exchange Commission. Decorize provides no assurance regarding the actual outcome of the events contemplated by any forward-looking statements included in this release.