Published: May 01, 2006
Cornerstone Expands Distribution Network and Closes Acquisition
Cornerstone Industries International Inc. (the "Company") (TSX VENTURE:CIA)(FRANKFURT WKN:A0HFXV) is pleased to announce that the Company, through its 20-year Exclusive Supply Agreement with Home Solutions of America Inc. (AMEX: HOM), has increased its specialty retail distribution network by 20 percent to 150 store locations. Home Solutions of America Inc., via one of its wholly owned subsidiaries, has been awarded contracts by the world's largest home improvement specialty retailer to provide, fabricate and install granite countertops for 25 additional stores. The distribution network now encompasses the states of Alabama, Florida, Georgia, Louisiana, Mississippi and South Carolina. The Company looks forward to supplying its specialty products and services to the additional stores.
In addition, the Company is pleased to announce that, through its wholly owned subsidiary, Cornerstone Granite and Marble Wholesale Inc. ("CGMW"), it has completed the acquisition, subject to TSX Venture final acceptance, of Cornerstone Building and Remodeling Inc. ("B&R") effective March 31, 2006. The acquisition is expected to be cash flow accretive in 2006 and strengthens the Company's position in the building and remodeling business. B&R has experienced an average 57 percent annual revenue growth over the past 3 years. With a concerted effort to maintain B&R's growth, the Company anticipates that B&R could potentially increase the Company's 2006 revenue significantly.
About Cornerstone Industries International
Cornerstone Industries International (CIA) is a Canadian holding corporation in the business of vertically integrating the Building Industry through acquisitions of wholesale suppliers, building contractors, remodeling companies and other affiliated industries. The Company operates through two wholly owned subsidiaries: Cornerstone Granite and Marble Wholesale ("CGWM") and Cornerstone Building and Remodeling ("B&R").
B&R is in the remodeling and restoration business; servicing commercial and residential properties in the US Gulf Coast area through one of the worlds two largest building supply retailers.
CGMW imports and supplies, on a wholesale basis, raw granite and marble slabs, sinks, tiles, hardware and fabrication supplies through the world's two largest building supply retailers and several national home builders in the United States.
The main operating offices are located at 5642 Enterprise Parkway, Fort Myers, FL 33905. Its public company and investor relations office is located at Suite 1304 - 925 West Georgia Street, Vancouver, B.C., Canada V6C 3L2.
ON BEHALF OF THE BOARD OF DIRECTORS
Cornerstone Industries International Inc.
This press release contains "forward-looking statements" which reflect Cornerstone Industries International Inc.'s current expectations regarding the future results of operations, performance and achievements. The Company has tried, wherever possible, to identify these forward-looking statements by, among other things, using words such as "anticipate", "believe", "estimate", "expect" and similar expressions. The statements reflect the current beliefs of the management of the Company, and are based on currently available information. Accordingly, these statements are subject to known and unknown risks, uncertainties and other factors, which could cause the actual results, performance, or achievements of the Company to differ materially from those expressed in, or implied by, these statements. The Company undertakes no obligation to publicly update or review the forward-looking statements whether as a result of new information, future events or otherwise. Historical results of operations and trends may not necessarily indicate future results from operations.
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