DALLAS, March 27, 2008 (PRIME NEWSWIRE) -- Home Solutions of America, Inc. (Pink Sheets:HSOA), a provider of restoration, construction and interior services to commercial and residential customers, announced today a favorable legal ruling in proceedings initiated by Scott Sewell, who was terminated for cause by the company.

As announced on January 14, 2008, Home Solutions of America Inc. (the "Company") and Home Solutions Restoration of Louisiana, Inc., the Company's wholly owned subsidiary ("HSRLA"), terminated the employment of Mr. Scott Sewell for "cause," and the Company removed Mr. Sewell as a director of HSRLA. The Company terminated Mr. Sewell for a continued course of misconduct, insubordination and breach of his Employment Agreement, culminating in the improper retention of counsel on behalf of HSRLA and use of HSRLA funds to initiate a Petition for Concursus by HSRLA against the Company, and others, including Mr. Sewell himself, in the Civil District Court for the Parish of Orleans, State of Louisiana. The purpose of the suit was to, in effect, confess judgment against the Company for up to several million dollars on personal claims by Mr. Sewell and others which the Company vigorously disputes. Mr. Sewell and others, including BNOB Construction Services LLC ("BNOB"), also filed an arbitration demand against the Company and HSRLA.

On March 20, 2008, a five judge panel of the Court of Appeal, Fourth Circuit, State of Louisiana vindicated the Company's position when it held that Mr. Sewell had an "undeniable conflict of interest" when he initiated the concursus proceeding because he was both an officer and director of HSRLA and had personal claims against the Company and HSRLA. The Court further found that the concursus proceeding essentially confessed judgment against HSRLA so that Mr. Sewell had to show that he had specific authority to file the suit, such as by resolution of the Board of Directors of HSRLA, which Mr. Sewell failed to do. The Court dismissed the Petition for Concursus.

The Company continues to pursue all available legal remedies against Mr. Sewell for his improper actions. In the arbitration proceeding, the Company has asserted counterclaims against Mr. Sewell and BNOB. The Company has also filed a Petition against Mr. Sewell and BNOB in the Civil District Court for the Parish of Orleans, State of Louisiana. The Petition outlines Mr. Sewell's ongoing and flagrant course of intentional misconduct against the Company and HSRLA that began before his termination and was intended to wrongfully advantage Mr. Sewell in breach of his fiduciary and contractual obligations to the Company and HSRLA. The suit alleges that beginning at least as early as November 14, 2007, when Mr. Sewell learned his termination was imminent, and while Mr. Sewell was still in the position of Chief Executive Officer of HSRLA as well as a member of the Boards of both HSRLA and the Company, Mr. Sewell embarked on a course of conduct designed to promote his self-interest at the expense of the companies wherein he served. The suit further alleges that, in addition to initiating the concursus proceeding in an attempt to tie up millions in company assets, Mr. Sewell commercially disparaged and defamed HSRLA, as well as the Company and its officers and directors, told subcontractors and customers that HSRLA would not perform its obligations because it was allegedly going into bankruptcy, began to compete with HSRLA, soliciting and hiring HSRLA employees of HSRLA for that purpose, solicited HSRLA's customers, and took over ongoing HSRLA projects. The Company seeks to enjoin Mr. Sewell and BNOB from what it alleges to be continuing violations of contractual obligations and covenants prohibiting them from soliciting and diverting business opportunities away from the Company, raiding HSRLA employees, interfering with the business operations of the Company and HSRLA, and wrongfully competing against the Company and HSRLA in the New Orleans marketplace.

On November 9, 2007, the Company filed on Form 12b-25, a notification of late filing of its quarterly report for the third quarter of 2007. On November 14, 2007, the Company announced that it would further delay the filing of the quarterly report past the extended filing deadline. On December 14, 2007, the Company announced that it and its auditors had concluded that the Company's financial statements for the first two quarters of 2007 need to be restated and should no longer be relied upon. On March 21, 2008, the Company filed, on Form 12b-25, a notification of late filing of its Annual Report on Form 10-K for 2007. The delays arose due to the Audit Committee investigation, which has now ended. The Company is working diligently to file all required reports as soon as practicable.

About Home Solutions of America, Inc.

Home Solutions of America, Inc. is a provider of restoration, construction and interior services to commercial and residential customers. 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 North Carolina. Home Solutions Restoration of Louisiana, Inc., which does business as Associated Contractors ("Associated"), is a Louisiana based commercial, industrial and residential contractor working in the governmental and private arenas. Associated has been one of the larger players in redeveloping public schools in the aftermath of Hurricane Katrina. Its clients include the State of Louisiana, the City of New Orleans, the Louisiana National Guard, the historic French Market and Louis Armstrong International Airport. For additional information, please visit the Company's Web site at http://www.hsoacorp.com.

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Cautionary Notice:

This press release contains forward-looking statements made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws. Such forward-looking statements are based on the beliefs of the Company's management as well as assumptions made by and information currently available to them. The Company has no obligation to update such forward-looking statements. Actual results may vary significantly from these forward-looking statements based on a variety of factors. These risks and uncertainties include, but are not limited to, the Company's future financial performance, business prospects, ability to win new contracts, the performance under existing contracts, the timing of completion of projects, ability to secure bonding, ability to secure labor in markets where it does not have a labor force, performance of subcontractors and the ability to collect accounts receivable. In addition, there can be no assurance that the actions taken or to be taken by the Company as described herein will result in increased revenues. Other important factors are described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2006 in the section entitled "Risk Factors."

Home Solutions of America, Inc.
Matt Kreps