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U.S. Home Systems Enters Canadian Market

DALLAS, May 21, 2012 /PRNewswire/ -- U.S. Home Systems, Inc. (NasdaqNGM: USHS) today announced that it has entered the Canadian market, contracting with an established retailer to deliver kitchen and bath refacing products to Canadian Tire customers in Canada under the business name Canadian Tire Home Services .

To facilitate the expansion, U.S. Home Systems formed a new Canadian subsidiary, Canadian Home Systems, Ltd. (CHS), which has entered into a three year Services Agreement with Canadian Tire Financial Services Limited (CTFS), a wholly owned subsidiary of Canadian Tire Corporation, Limited (TSX-CTC.a) (Tsx:CTC).

Murray Gross, Chairman and Chief Executive Officer, commented "This expansion represents another major step in the execution of our growth strategy.  The strength of the Canadian Tire brand in Canada is truly unique with instant recognition by Canadian shoppers. Canadian Tire has product offerings in automotive, living, fixing, playing, apparel and financial services. We believe that more than 90% of Canadians live within 15 minutes of one of Canadian Tire's 488 stores. We have strong expectations that the introduction of our kitchen and bath products and services will be well received by customers in Canada and we look forward to a long and mutually rewarding relationship with CTFS."

The rollout of the program to Canadian Tire customers will commence in early July 2012 with the initial phase in the Greater Toronto Area. To facilitate the expansion of U.S. Home Systems into the Greater Toronto Area market, CHS will initially open two sales and installation centers, one of which will also serve as its Canadian corporate administrative office. CHS and CTFS will expand the program throughout the Province of Ontario by December 31, 2012. If both CHS and CTFS agree that the initial phase is successful, the program will be fully implemented in the provinces of Ontario, British Columbia, Alberta, Manitoba and Quebec.  Management anticipates the roll out will be completed by December 2014.

USHS announced that the major terms of the agreement between CHS and CTFS included an exclusive arrangement between the parties in Canada under the business name Canadian Tire Home Services. Subject to certain conditions, the agreement can automatically be extended for successive two year terms.

Mr. Gross continued "Our Canadian operations will be similar to our current U.S. business activities in that our personnel will follow up leads generated by Canadian Tire Home Services or us with in-house visits with prospective Canadian Tire customers for our products. We will provide the products, labor and installation services necessary to complete customer orders and we will be required to make necessary repairs to address customer complaints or warranty claims."

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