Diamond Home Services, Inc.
Ticker: DHMS 222 Church Street, Diamond Plaza
Exchange: NASDAQ-National Market Woodstock, Illinois 60098
Industry: Construction (815) 334-1414

Type of Shares:Common Shares Filing Date:4/19/96
U.S. Shares:3,420,000 Offer Date:6/19/96
Non-U.S. Shares:0 Filing Range:$11.00 - $13.00
Primary Shares:2,687,000 Offer Price:$13.00
Secondary Shares:733,000 Gross Spread:$0.91
Offering Amount: $41,040,000 Selling:$0.50
Expenses:$500,000 Reallowance:$0.10
Shares Out After:8,936,950
Spin out parent firm: Globe Building Materials, Inc.

ManagerTierPhone
William Blair & CompanyLead Manager (312) 236-1600

Auditor: Ernst & Young
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 3/31/96 3/31/95 3/31/96
Revenue:$124.85$27.09$22.36Assets:$35.51
Net Income:$3.74$0.35$0.00Liabilities:$30.33
EPS:$0.54$0.06Equity:$5.18

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
The company markets and contracts installed home improvement products, including roofing, gutters, doors and fencing. The company markets its home improvement products and services directly to consumers primarily under the "Sears" name pursuant to a three-year license agreement with Sears, Roebuck and Co., which expires December 31, 1998. Sears has been in business for over 100 years and is nationally recognized name in the installed home improvement industry. The company is one of the largest third-party licensees of Sears home improvement products and services. The company currently markets its products directly to residential customers in 44 states through a combination of national and local advertising and its approximately 700 sales managers and sales representatives. The company has 74 sales offices located in major cities across the U.S., providing the company with a presence in markets covering approximately 77% of the owner-occupied households in the U.S.

Use of Proceeds
The proceeds from the offering will be used to repay debt, to pay an $8.6 million special, one-time dividend to existing stockholders, to fund the company's consumer finance subsidiary, develop and expand product lines and services, and for working capital and other general corporate purposes.

Last updated: 10/28/96

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