Remodel Auction to Acquire Scenic Railroad and Land Assets for $24.5 Million in Cash and Preferred Stock

/ Source: GlobeNewswire

CHARLOTTE, N.C., Oct. 18, 2010 (GLOBE NEWSWIRE) -- Remodel Auction, Inc. (Pink Sheets:REMD), announced today it has signed a definitive agreement to acquire 49% ownership interests in two nationally acclaimed scenic railroads. The two scenic railroads are the Great Smokey Mountain Railroad, LLC, a Colorado corporation ("GSMR"), which operates 55 miles of rail in the Mountains of Western North Carolina with headquarters in Bryson City, North Carolina and American Heritage Railways of Texas, LLC, a Texas corporation ("American Heritage"), which operates the Texas State Railroad located in Cherokee and Anderson Counties, Texas ("Texas State Railroad"). In keeping with the Company's focus on real estate and tourism development, REMD also intends to acquire a 100% ownership interest of SB Partners, LLC, a Georgia corporation ("SB Partners") which owns over 100 fully developed residential lots in the prestigious Southbridge at Berwick Plantation community in Savannah, Georgia and currently has a lot purchase agreement in place with home builder DR Horton, Inc. (NYSE:DHI). Remodel Auction, Inc. will change its name to American Heritage Family Parks to better reflect the growth strategy of the new board.  

Clinton F. Walker, Founder of Remodel Auction states, "Owning parts of these railroads is not only a wise investment; it's a way for us to continue to teach generations to come about such a remarkable part of our country's heritage. On a recent family trip to Western North Carolina we had the opportunity to see how popular GSMR was with kids of all ages. We attended the Thomas the Train special event which was an instant hit with my five-year-old son and he eagerly awaits returning for the Polar Express this winter." Walker further stated, "It is obvious that the costs associated with recreating a magnificent attraction like GSMR would make it impossible for any competitor to replicate and that we believe is an extremely wise investment. In addition, now that we have entered into these agreements we can pursue the acquisition of Ghost Town in the Sky."  

Al Harper, Chairman of the Board of American Heritage Railways states, "We have invested heavily in REMD as a vehicle for growth and are hopeful we can find additional acquisitions which will be compatible with our mission to preserve American History through profitable, educational and entertaining endeavors. I applaud and encourage REMD Management's efforts to acquire Ghost Town in The Sky, which will celebrate its 50 year anniversary if opened in 2011." Ghost Town in The Sky is a 100 acre family theme park with over 150 additional acres of land located in the Smoky Mountains of Western North Carolina.   "The preservation and successful operation of Ghost Town in the Sky fits with our mission of making American Heritage fun and I wish them all the success in this project. Heritage Tourism is our business and this will be a growth market for years to come."

Forward Looking Statements

This press release contains forward-looking statements subject to the inherent uncertainties in predicting future results and conditions. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipate," "expects," "estimates," and similar expressions) should also be considered to be forward-looking statements. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements. These factors are identified from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to update such statements to reflect subsequent events.

CONTACT: Remodel Auction Inc. Clinton F. Walker (888) 269-0782 Fax: (208) 545-9663