--------------------------------------------------------------------------------
[MASTER-HALCO LOGO] 110 E. La Habra Blvd.
La Habra, CA 90631
Tel: 562.694.5066
Fax: 562.691.4686
www.mhfence.com
---------------
NEWS RELEASE
Contact: Charles Larsen, Master-Halco, (800) 883-8384, x2330,
[email protected]
-------------------
Sid Robinson, Magnet Communications, (909) 272-1888,
[email protected]
-----------------------
Nancy Ross, Diamond Home Services, Inc. (High Ridge Partners, Inc.),
(312) 456-5636
Date: October 5, 2000
MASTER-HALCO, INC. TO ACQUIRE REEVES
SOUTHEASTERN CORPORATION
LA HABRA, Calif. and CHICAGO, Ill. --Master-Halco, Inc., the world's
leading distributor and manufacturer of fence systems, and Diamond Home
Services, Inc. announced today that Master-Halco has signed an agreement to
acquire substantially all of the assets of Reeves Southeastern Corporation, the
third-largest fencing product manufacturer and distributor in the United States.
Reeves Southeastern Corporation is a wholly owned subsidiary of Diamond Home
Services, Inc. (DHMS.OB).
The acquisition will include a total of 32 branch locations in the Eastern U.S.,
with manufacturing plants in Tampa, Fla., and Birmingham, Ala. It also includes
Reeves Southeastern's Electronic Entry Distributors in Santa Monica, Calif. The
purchase price is $35.5 million and the assumption of certain liabilities. The
closing of the transaction, expected in the first quarter of 2001, is subject to
receipt of certain governmental approvals and other closing conditions. Both
Reeves Southeastern and Master-Halco will operate independently with business as
usual until the closing of the transaction.
A subsidiary of New York-based ITOCHU International, Inc., Master-Halco
currently operates branch service centers, manufacturing plants and corporate
offices from 59 locations strategically located across the U.S. and Canada. The
La Habra, Calif.-based corporation was founded in 1961.
"Reeves Southeastern has been an important and successful leader in our industry
for many years," said Master-Halco's President and Chief Executive Officer Barry
Marrs. "We have always had tremendous admiration for Reeves Southeastern, and
they are very well respected in the building and construction industry."
The acquisition will allow Master-Halco to improve its ability to serve
contractors in many key markets in the Eastern region of the United States. The
company serves professional fencing contractors and home centers throughout
North America.
"This agreement will only further our position as the finest company in the
industry," Marrs said. "We will be able to provide high value options for our
contractor and home center customers in the Eastern region, as well as around
the country."
"Not only does Master-Halco have a strong position of industry leadership, but
we are also known for our strong family culture," Marrs said. "With the addition
of the many fine Reeves Southeastern personnel and facilities, the associates of
this combined team will have an exciting opportunity to grow and prosper with
the company for many years to come."
-more-
<PAGE>
MASTER-HALCO, INC. TO ACQUIRE REEVES SOUTHEASTERN CORP.
2-2-2-2
"Safe Harbor" Statement under the U.S. Private Securities Litigation Reform Act
of 1995: This press release contains "forward -looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995, as amended.
These statements are based on management's current expectations and are
naturally subject to uncertainty and changes in circumstances. Actual results
may vary materially from the expectations contained herein. Factors that could
cause actual results to differ materially from those described herein include:
the inability to obtain governmental approvals; actions of the U.S. government;
the inability to successfully integrate the businesses of Master-Halco and
Reeves Southeastern; costs related to the acquisition; labor integration issues;
the economic environment of the fencing industry and the general economic
environment. Users of forward-looking statements are encouraged to review Item 7
of Diamond Home Services, Inc.'s most recent annual report on Form 10-K, its
filings on Form 10-Q, management's discussion and analysis in its most recent
annual report to stockholders, its filings on Form 8-K, and other federal
securities law filings for a description of other important factors that may
affect Diamond Home Services, Inc.'s business, results of operations and
financial condition. Diamond Home Services, Inc. is under no obligation to (and
expressly disclaims any such obligation to) update or alter its forward-looking
statements, whether as a result of new information, future events or otherwise.
# # #
