SYSTEMS PAVING UNVEILS HOME-BASED FRANCHISE OPPORTUNITY

Intricate Interlocking Paving Stone Company's new offering poised to increase market penetration and open up more locations

Systems Paving, the nation's leading home-improvement company that specializes in beautifying driveways and other residential hardscapes with interlocking paving stone patterns, has announced a new direction for its Franchise offering in the United States. The company is introducing a new home-based format in response to the growing demand by entrepreneurs for a smaller business model. This lower investment, smaller territory size and low overhead costs format will be available starting April 2005 across all markets in the nation.

The new home-based Franchise Opportunity will be offered at an increased number of smaller territories covering 30,000 - 40,000 qualified households. Entrepreneurs wanting to start a Systems Paving franchise would now need between $40,000 - $100,000 as an initial investment. The franchise fee of $9,750, plus $5,000 -$8,000 territory fee would cover franchisee comprehensive training, consultation and access to Systems Paving software programs, which aid in monitoring leads, sales, job cost and reports. Also included is PaverImager, an imaging program that allows franchisees to take digital photos and generate the effect interlocking paving stones can have if installed on a customer's driveway before the work is started.

With this new offering, there is no longer a need to obtain an office space or hire a sales team and overhead costs can be significantly reduced. To keep costs down, franchisees are not required to carry inventory and materials are typically delivered on-site. This method eliminates the difficulties and costs of storage space, on-site logistics and allows franchisees to only order the required materials for each individual job.

"Over the past three years of franchising, we have received an increasing number of requests from individuals, looking to take advantage of a new business opportunity, for a more affordable smaller business model," said Larry Green, CEO. "We believe Franchising is a wonderful way to grow our business and our new home-based format is a win-win situation for all involved. The lower investment, smaller territory size and low overhead costs will allow a larger number of ambitious entrepreneurs to break new ground into the franchising industry. While, the affordability of the offering will help us increase the rate of penetration across our markets."

Systems Paving is positioned to give its franchisees the powerful tools they need to succeed. It offers a detailed, systematic plan to start, sustain and grow a franchise business. Having an established business system, a results-oriented direct marketing program and providing an opportunity for franchisees to be the frontrunners in a growing trend, Systems Paving has instituted a business poised for growth. Systems Paving's direct marketing program is a targeted, focused campaign that generates sales leads from day one.

Since its introduction in 1992, Systems Paving has grown at a rate of 40 percent each year, with annual sales of more than $40 million in 2004, in excess of $50 million this year (2005) and expected sales revenue of $100 million by the end of 2008. Following significant success with six corporate-owned locations in California, Seattle and Denver and Franchises in Chicago, Atlanta, Boston, Indianapolis, Kansas City and Dallas, Systems Paving is expanding throughout the nation via franchising. The company began franchising the concept in limited markets in 2001. Systems Paving's new business model can be successfully implemented across the nation.

About Systems Paving

Systems Paving, Inc., based in Newport Beach, CA, was founded in 1992 by Doug Lueck and Larry Green, with a combined 38 years in the home-improvement industry. Systems Paving is an interlocking paving stone concept that far surpasses the beauty and reliability of traditional cement and blacktop. Six franchisees and six corporate-owned Systems Paving locations operate in the United States, with projected combined annual revenues of more than $55 million for 2005.