U.S. Home Systems Extends Two Pilot Programs with The Home Depot for Two Additional Years

Business Wire, May 10, 2004

Business Editors

DALLAS--(BUSINESS WIRE)--May 10, 2004

U.S. Remodelers Subsidiary and The Home Depot Modify Service

Provider Agreements to Add Two New Markets

U.S. Home Systems, Inc. (Nasdaq:USHS) today announced that its U.S. Remodelers, Inc. subsidiary (USR) and The Home Depot have amended their kitchen cabinet refacing service provider agreement in order to extend the program, which was to expire in August 2004, to a new two-year term ending May 2006. Additionally, the agreement was amended to add the greater Detroit and Minneapolis-St. Paul markets to the Company's The Home Depot kitchen cabinet refacing coverage area. These new markets will add approximately 83 stores to the 240 stores originally included in the pilot agreement.

USR and The Home Depot have also amended their service provider agreement for bathtub liners and wall surrounds to provide for an additional two-year term, which expires in May 2006. The amended agreement also expands the bathtub liner program into an additional 193 The Home Depot stores.

Under these amended agreements, USR will offer both its kitchen cabinet refacing products and bathtub liners and related accessories in approximately 323 The Home Depot stores in designated markets.

Murray H. Gross, Chairman, President & CEO of USHS, stated, "The Home Depot's extension of these two pilot programs to more permanent agreements demonstrates its confidence in us. The Home Depot is a strong and reputable brand. It provides USHS with an excellent channel of distribution for our products and installation services while complementing our strategic growth plans. We are committed to providing our own customers and those of The Home Depot with high quality products."

Peter Bulger, President and CEO of USR, stated, "USR currently operates sales and installation centers in California, Michigan, Minnesota, Oregon, Washington and Colorado. We plan to use these existing facilities and to open new facilities to serve The Home Depot designated markets for our kitchen refacing, bathroom products and related accessories and installation services."

About U.S. Home Systems, Inc.

U.S. Home Systems, Inc. (www.ushomesystems.com) is engaged, through direct consumer marketing, in the manufacture, design, sale and installation of custom quality specialty home improvement products, marketed under nationally recognized brands such as Renewal By Andersen(R) and The Home Depot(R) "At Home Services" and Century 21 Home Improvements. The Home Depot is a Federally Registered Trademark of Homer TLC, Inc. The Company's product lines include kitchen cabinet refacing, bathroom refacing, wood decks, deck enclosures and replacement windows. The Company manufactures its own cabinet refacing products, bathroom cabinetry and wood decks. The Company's financing subsidiary purchases retail installment obligations from remodeling contractors throughout the United States, including contracts originated by our own home improvement operations.

This press release may contain forward-looking statements that are based on a number of assumptions, including expectations for continued market growth and anticipated revenue levels. Although the Company believes these assumptions are reasonable, no assurance can be given that they will prove correct. The Company's ability to continue to grow sales and to expand geographically and through new products and acquisitions will be key to its success in the future. If the industry's or the Company's performance differs materially from these assumptions or estimates, U.S. Home Systems' actual results could vary significantly from the estimated performance reflected in any forward-looking statements.