Home System Group (OTCBB: HSYT; “Home System” or the “Company”), an international manufacturer and distributor of a variety of household appliances marketed by large retailers, today announced the revised earnings guidance for 2009.

The Company has determined that its previous revenue and earning guidance for 2009 needs to be revised. At this time, the Company believes that its 2009 revenue will be in a range from $58 million to $60 million, and its net income will be between $8 million to $9 million. These expectations update the previous projection of a 2009 revenue level of $69 million and $10 million net income. The revised 2009 figures are subject to final review and audit.

The reduction of approximately $10 million in revenue is primarily due to a change in the composition of certain orders and a delay of product delivery. CEO Mr. Yu stated: “The Company had expected to receive orders for barbeque grills and some other small home appliances valued at $5 million. However the orders that the Company received consisted of processing semi-finished products to finished products. This change resulted in a substantially lower revenue level, although these products generated a higher gross margin, Mr. Yu continued, “Secondly there were approximately $2 million of product which had been scheduled to be delivered in December 2009 which has been postponed to the first quarter of 2010 due to a delay in receipt of the component parts from one of our suppliers.”

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