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HouseRaising Goes National Acquiring COBS Homes

With Home Depot as a Marketing Partner, COBS Has 175 Home Projects Currently Underway With Values of $90 Million

HRI Projects Consolidated Revenues of $100 Million and EBITDA of $10 Million in 2006

HouseRaising, Inc. ("HRI" or the "Company") announced today that it has entered into a binding agreement to acquire COBS Homes ("COBS"), a privately held national building management company operating in 46 states. Headquartered in Oceanside, California, COBS has distinguished itself as one of the nation's fastest-growing online homebuilder management companies. COBS is further supported by a marketing partnership with Home Depot, which is expected to continue following the completion of the merger.

COBS Current Business:

COBS reports 140 home projects closed in 2004, representing a total home value of more than $70 million. These projects generated fee revenues for COBS of just over $5,000,000 on an unaudited basis. One-third of the projects were located in California. As of March 2005, COBS has 175 projects underway. With the number of prospects in its sales pipeline, COBS expects to close approximately 215 home projects during 2005, ending the year with close to 300 projects underway going into 2006. The 215 projects COBS expects to close during 2005 represent $100 million in total home values and will create fee revenues close to $7 million. Once the acquisition of COBS is completed, revenues will immediately accrete to the earnings of HouseRaising, Inc.

Synergistic Growth of HouseRaising and COBS Businesses Combined:

After the integration of COBS' operations, HouseRaising projects that it will convert 25 of COBS pending management sales contracts into design/build projects, whereby HouseRaising will be retained as the turnkey homebuilder. Closing 15 of the 25 COBS projects by year-end, HouseRaising estimates that its revenues in 2005 on an as-completed basis combined with COBS will total $20 million with an EBITDA of close to $1 million. According to HouseRaising, these forecasts have a reasonable basis in fact when combining the operations of COBS and HouseRaising.

HouseRaising projects that in 2006 it will convert 100 of COBS' sales into design/build projects, producing consolidated revenues in excess of $100 million with EBITDA projected to be over $10 million. It is important to realize that these assumptions are based on the acquisition of COBS. The acquisition is contingent upon a satisfactory three-year audit of COBS' books and records, completion of a satisfactory due diligence investigation and obtaining four-year non-compete agreements from the principals of COBS Homes. Also, according to the contract, the merger must close by June 17th, 2005.

Charles Skibo, Chairman of HRI, commented, "We are proud that COBS Homes has decided to become part of our Company and participate in our growth. In addition to the operations of our respective companies being highly compatible, the synergies created with this acquisition allow us to immediately increase our revenue base. Expanding our geographic presence into California and nationally allows us to take advantage of our Internet-based homebuilding system. COBS has invested five years into developing a national marketing and support program while HouseRaising focused on developing a homebuilding company and management process that will increase COBS' profits while maintaining lower prices for their homebuyers. This acquisition represents a significant part of our goal to grow the company and allows us to open a HouseRaising Design Center in Southern California several years ahead of schedule."

"We began following COBS' progress close to two years ago," stated Robert V. McLemore, HouseRaising's Founder and President. "By integrating our System C into COBS' existing operation, HouseRaising will increase COBS' revenues and margins while maintaining lower costs to homebuyers. Through an excellent marketing program, thousands of prospective homebuyers contact COBS each year seeking assistance in planning and building custom home projects where the buyers manage the homebuilding process without a builder. For the right individuals, COBS' program offers a reasonable and sound way for homebuyers to save money. The combined companies will continue to provide these services to the public."

Revenue and EBITDA Projections are Based On HRI's Ability to Convert 25 Projects in 2005 and 100 Projects in 2006 and Successful Implementation of System C:

"HouseRaising bases its 2005 and 2006 projections in part upon increasing COBS' sales contracts due to the added value proposition provided by use of System C, its management platforms, affiliated vendors and design centers. Within 90 days of closing, COBS will begin utilizing HouseRaising's HomeBuyerDirect program that will provide contracts with alternate options where homebuyers act as General Contractor on the projects with varying degrees of direct support from HRI. System C provides a builder-manager to oversee the projects and provides affiliated vendors that represent predictable quality at savings to each home," said McLemore.

Based on historical data, for every 1,000 prospects contacting COBS homes, approximately 20 or 2% sign contracts for services. Another of the synergies in the acquisition is the belief that when HouseRaising contacts the 980 of the 1,000 prospects that did not commit to use COBS, reintroducing turn-key pricing options, where HouseRaising is financially responsible for building the home complete, the company will convert between 2% and 4% of the prospects into sales.

Costs of the Acquisition and Employment Contracts:

Cost of the acquisition and ongoing employee agreement is valued at just over $5 million and will be completed through an Agreement and Plan of Merger. HouseRaising will pay approximately $3.25 million in cash to acquire COBS and its management software and will issue approximately $1.75 million in restricted stock tied to a non-compete agreement and 4-year work-out plans with COBS' executive employees. Rob Mackle, COBS' President, will become President of HouseRaising's HomeBuyerDirect division, an Internet based home management company. COBS executive staff and support employees will continue working in the COBS organization as a HouseRaising subsidiary. Accordingly, the Company expects to file details of this transaction and complete the merger in the near future.

About HouseRaising, Inc.

HouseRaising, Inc.'s operations consists of three (3) wholly owned subsidiaries: HouseRaisingUSA (HR-USA); HR HomeBuyerDirect (HBD); and HouseRaisingAcademy (HRA). HR-USA manages regional companies that design and build homes for discriminating homebuyers. HR-HBD is an Internet-based company working for homebuyers desiring to act as the builder of their own home. COBS Homes will be a wholly owned subsidiary of HR-HBD. HRA is an Internet-based technology company providing management software and support structure for all HouseRaising activities. Each entity functions as a profit center for HouseRaising, Inc.

For more information, please visit the company's website at .

Certain information contained in these materials is "forward-looking" information, such as projections, estimates, pro formas, or statements of intentions, expectations or plans. All forward-looking information is subject to known and unknown risks and uncertainties, many of which are outside of the control of the company. Consequently, actual results may, and probably will, differ materially from the results contemplated in such forward-looking information. Final closing of the cobs transaction will be subject to final due diligence and closing of a private placement to fund the acquisition with HouseRaising's financial partners.

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