2008-04-29 23:44:11 -

- Richards Partners Mary Montgomery, 214-891-7634 mary_montgomery@richards.com or George McCane, 214-891-5786 george_mccane@richards.com Home Interiors & Gifts, Inc. today voluntarily filed a petition under Chapter 11 of the U.S. Bankruptcy Code to reorganize the company's business operations and restructure its debt. The petition was filed in the U.S. Bankruptcy Court for the Northern District of Texas, Dallas

Division. The company's foreign affiliates (Home Interiors de Mexico, S de RL de CV; Home Interiors Services de Mexico, S.A. de CV; and Home Interiors and Gifts of Canada, Inc.) and its wholly-owned subsidiary, Domistyle, Inc., are not a part of the filing and will continue operating outside of the Chapter 11 reorganization.

Home Interiors is conducting normal business operations and is focused on continuing to serve its decorating consultants and directors and to returning the business to financial health and profitability. As provided for under the Bankruptcy Code, Home Interiors expects to pay suppliers in full and under normal conditions for all goods and services provided after today's filing. The company also expects to continue to compensate employees and decorating consultants as usual, upon approval by the Court of a motion filed concurrent with the Chapter 11 petition.

Home Interiors will work with its constituencies to execute its reorganization plans with approval of the Court, and exit bankruptcy as expeditiously as possible. With debtor-in-possession financing, the company will have greater financial flexibility and sufficient liquidity to meet its obligations during the Chapter 11 process.

Dick Lindenmuth, chief restructuring officer, said, "Home Interiors, as well as other representative/direct sales companies, has experienced declining sales volume in the United States in the past decade, offset somewhat by increased sales in Mexico and Puerto Rico. Initiatives the company launched to spur sales and reduce costs in recent years were not sufficient to maintain financial health in the current operating environment.

"The board of directors believes the Chapter 11 process is the most prudent course at this time to enable the company to restructure its debt and align its cost structure with revenues. We expect to emerge from Chapter 11 with an improved balance sheet and streamlined business operations that will provide a foundation for future success.

"In addition, it is important to recognize the critical role our decorating consultants and employees have played in the history of this company and will play in our future success. Our 100,000 consultants are the backbone of the company. We deeply appreciate their loyalty and hard work. We also appreciate our customers and suppliers for their support during this process," said Lindenmuth.

Home Interiors & Gifts, Inc. is a member of the Direct Selling Association and markets exclusive home decoration products through its independent decorating consultants in the United States, Puerto Rico, Mexico and Canada.

For more information about Home Interiors & Gifts: www.homeinteriors.com/

Company Conducting Normal Business Operations