Home System Achieves Significant Improvements in its Gross Margins

CEO Lei Yu Provides Insight on Gross Margin Improvements and Production Efficiencies

NEW YORK and GUANGDONG, China, Nov. 19 /PRNewswire-Asia-FirstCall/ -- Home System Group (OTC Bulletin Board: HSYT; "Home System" or the "Company"), an international manufacturer and distributor of a variety of household appliances sold to large retailers, announced through its 10-Q filing on Monday, November 16, its results for the quarter and nine months ended September 30, 2009.

Highlighted in these results was the substantial improvement in the Company's gross margin, which reached 32% in the quarter and 24% for the nine months to date. These levels compare quite favorably to last year's gross margin results which were 4% in the quarter and negative for the nine months, and these enhanced margins significantly benefited Home System's reported net income.

"We are very proud of the improvement in Home System's gross margin and how that has substantially benefited the Company's financial performance and position," said Mr. Lei Yu, Home System Group's Chief Executive Officer. "This was the result of the diligent efforts by the Home System staff of pursuing opportunities in a variety of areas."

Mr. Yu went on to indicate that the Company's acquisition of Weihe last fall facilitated lower pricing of certain raw materials such as steel due to the Company's increased purchasing volume. The production scheduling and flow of materials within the Company's manufacturing areas were revamped, enabling a variety of improvements and efficiencies. Additionally the Company has been active in acquiring new fabrication machinery to improve productivity. One example of this is a steel fabrication machine that has increased the output of one area four-fold, while also improving the raw material utilization.

Mr. Yu, who has a degree in Mechanical Engineering, concluded, "As significant as these recent results are, we believe that there are further opportunities and the Company remains committed to its goal of continuous improvements in its manufacturing efficiencies and the productivity of our staff."

About Home System Group

Home System Group is primarily engaged in the production of a variety of small household appliances, including stainless steel gas grills and ovens, gas and electric heaters, residential water pumps, ceiling and table fans, decorative lamps, LEDs and energy-saving lamps. Its products are sold through distributors and direct to retailers located in China, America, Europe, Australia, Africa, and Southeast Asia. For more information, please visit: http://www.homesystemgroup.com .

FORWARD-LOOKING STATEMENTS: This release contains "forward-looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. These forward- looking statements are subject to various risks and uncertainties that could cause Home System Group's actual results to differ materially from those currently anticipated, including the risk factors identified in Home System Group's filings with the Securities and Exchange Commission.

    For more information, please contact:

    Home System Group
     Eva Wang
     Tel:   +1-347-624-5699
     Email: vp@homesystemgroup.com

SOURCE Home System Group

RELATED LINKS
http://www.homesystemgroup.com