Smart System Provides Savings of up to 40% in Materials and 25 Days in Labor Per Unit When Compared to First Generation Approach of Post Tension Slabs, Pier and Grade Beam, or Driven Piles

PLEASANT HILL, Calif. (February 24, 2005) — Pacific Housing Systems™, Inc. today introduced the first three components of its Smart System™ including the Winslow Geo Anchor™, Smart Floor™ and Smart Core™ products, the first-ever system comprised of foundation, floor and core elements designed especially for residential home developers building on areas of marginal soil.

Pacific Housing Systems was formed on the simple premise that most good building lots are gone, forcing builders to move construction activities into areas where marginal soil (i.e.; landfills, hillsides, areas where the water table is high, sand and silt, bay muds, organics, firm clays and expansive ground) is prevalent.

Jim Winslow, CTO and co-founder of Pacific Housing Systems said, "In these environments, builders cannot utilize a standard slab foundation and must substitute materials that can withstand the rigors accompanying an installation where marginal soil exists, which usually means pouring a lot of extra concrete and adding rebar for reinforcement driving significant extra costs."

Until now, homebuilders have traditionally utilized one of the following three first generation approaches in situations where marginal soil exists:

• Post tension slabs
• Pier and grade beam
• Driven pile foundations

Dan Rhoades, Principal, Geotechnical Engineer at Purcell, Rhoades & Associates and an expert witness on various material sciences and geotechnical matter in California, Nevada and Texas said, "Unfortunately, each of these approaches brings a series of individual and combined limitations. They include, but are not limited to the factors involved in doubling the size of a standard foundation and the utilization of high tension cables in pt slabs, the hazards and accompanying spoils involved in drilling piers or driving piles, and the increased risk of future liability resulting from slab breakage, failure or mold that can come with each option. The time is right for a next generation approach that significantly limits the escalating costs we're experiencing while at the same time providing a superior-engineered system that handles these limitations."

Pacific Housing System Products

Winslow Geo Anchor™
The Winslow Geo Anchor is a rotary installed steel anchor, with single or multiple helix coils welded to an internal steel column, which provides exceptionally high compression and tension capacity in unstable soil. The Geo Anchor provides significant reductions in concrete and steel reinforcement, spoils, and time of installation when compared to the above-mentioned traditional approaches.

The Smart Floor™
The Smart Floor is a "raised floor" constructed of light gauge steel and 1-1/8 inch plywood decking. Its steel rim acts as a structural grade beam, allowing it to span and bear a wider area of any ensuing load, dramatically reducing the number of any potential piers used. It is manufactured off site to specifications. The factory environment removes potential weather problems and attaches quickly to the Winslow Geo Anchor foundation. The floor is built in the controlled factory environment while the grubbing, grading, spoils and foundation at the site are in process at the construction site providing a major cost savings.

The Smart Core™
The Smart Core is a module built efficiently off-site in a climate-controlled factory containing 85% of all the elements needed for most projects such as electrical panel, HVAC, water heater, kitchen cabinets and bathroom facilities. It can be set in conjunction with any floor and eliminates typical construction delays caused by weather, sub contactor no-shows, coordination confusion and missing or delayed materials.

Each product is designed to be sold, installed and used independently or together. However, when combined, savings of up to 40% in material costs and 25 days in time and labor per unit are common (due to considerable reductions in concrete, steel reinforcement, spoils and necessary site work) when compared to traditional approaches of post tension slabs, pier and grade beam, and driven piles with wood floors.

Tom Richards, president and co-founder of Pacific Housing Systems notes, "Articles about the lack of good soil are now regularly appearing in not only trade but mainstream publications too. Even Business Week (September 20, 2004, "A New Frontier for Suburban Builders") recently reported a major developer as saying, '. . . as land becomes rarer, you have to look for new areas where you can drive growth . . .' In the west and southeast, where the topology is given to costal waters, rivers, lakes and mountains, expansive soil is the norm, and with most of the good lots gone builders are faced with a much more difficult construction task in regards to foundations and floors - and, that's exactly where we can save them thousands of dollars per unit in both materials and labor costs."

About Pacific Housing Systems
Pacific Housing Systems, Inc. is a leading provider of next generation foundation, floor and core solutions for residential home builders developing projects where marginal soil (i.e.; landfills, hillsides, areas where the water table is high, sand and silt, bay mud's, organics, firm clays and expansive ground) is prevalent. Its Smart System product line includes the Winslow Geo Anchor, Smart Floor and Smart Core providing savings of up to 40% in material costs and 25 days of labor per unit when compared to traditional first generation approaches of pier and grade beam, driven piles or post tension slabs with wood floors. Pacific Housing System solutions enable developers to increase the speed, quality and quantity of new home deliveries and maximize their market share of new housing starts. For more information, contact Pacific Housing Systems at 925.683.2739 or www.pacifichousingsystems.com.

Winslow Geo Anchor, Smart Floor, Smart Core, Smart System and Pacific Housing Systems are trademarks of Pacific Housing Systems, Inc. All rights reserved. All other product and company names are property of their respective owners. Cost saving statements and forward looking projections are estimates and may vary by project.