Firm to Also Provide Sales & Marketing Assistance in Southern California Area

PLEASANT HILL, CA – June 1, 2006 – Pacific Housing Systems™, Inc. today announced it has completed an agreement with Preferred Framing, Inc. of Rancho Cucamonga , California , to purchase an equity stake in PHS. The investment will be used for the company’s sales, marketing, and operational expenses as it continues its expansion into markets across the Western US . Preferred will also assist PHS in sales and marketing efforts in Southern California by leveraging its extensive network of contacts among the area’s major production homebuilders,

Tom Richards, President and CEO of Pacific Housing Systems said, “We’ve worked closely with Preferred on a series of projects during the past 18 months and have come to know them well. They are a tier-one organization, and have a sterling reputation in Southern California . We are excited to have them on board not only as marketing partner in one of our largest potential markets, but, also and equally as important, a key part of our investment team.”

Dale Decarlo, President of Preferred Framing, noted, “We have operated in Southern California for over 20 years, and have seen first-hand the growing trend among builders to -- because of a dwindling supply of available lots on good soil -- move construction activities into areas that routinely require slabs and footings for their foundations to be at least 9” and 18“ (or greater) respectively. With more and more homes being built in these areas of “marginal soil,” and the costs of materials such as concrete and steel skyrocketing, the PHS WAFFLEMAT, Elevated Slab, and Raised Wood Floor systems designed especially for hillsides, areas with high water tables, expansive, hydro-collapsible, and rocky soils provide not only a timely but a cost effective solution to this issue. We are pleased to have the opportunity to invest in this organization, and know we will realize a significant gain as their systems are quickly embraced by builders in not only Southern California, but across the entire West as well.

About Pacific Housing Systems
Pacific Housing Systems, Inc. is a leading provider of next-generation foundation solutions for residential homebuilders developing projects on marginal soil. The company’s WAFFLEMAT, Elevated Slab, and Raised Wood Floor systems are specially designed and engineered where these conditions (hillsides, areas with high water tables, firm clays/organics, expansive, rocky, and hydro-collapsible soils) are prevalent, and include the Winslow Geo Anchor and Lateral Resistance Device components. PHS products and systems enable developers to increase the speed, quality, and quantity of construction, providing savings in material costs, building cycle-time, and future reliability issues. For additional information, visit www.pacifichousingsystems.com or call 925.683.2739

About Preferred Framing
Preferred Framing, Inc. (License # 501409) is one of Southern California ’s leading providers of residential, commercial, and multi-family framing services. Established in 1985, the company has experienced a constant growth rate during this time, and now stands strong as one of the largest framers in all Southern California . With its motto of “Production at its Best” as a driving force, PFI became the first framing company in Southern California to be certified by the National Association of Home Builders in its “National Housing Quality Certified Trade Contractor Program,” a rigorous program designed to endorse and provide in-depth training to all employees in higher standards of Safety and Quality Control. For additional information on PFI or its services, visit www.preferredframing.com, or call 909.291.8061.