PALM SPRINGS, Calif., January 25, 2008 – U.S. Dry Cleaning Corporation (OTCBB:UDRY) (“U.S. Dry Cleaning”), the nation’s first consolidator of dry cleaning stores,  announced today that Martin J. Brill, a Director of U.S. Dry Cleaning, has acquired 61,539 shares of the company’s common stock at a price exceeding the per-share average market price of the stock on the date of acquisition.

Mr. Brill’s transaction follows the purchase of 188,510 shares by the company’s CEO, Robert Y. Lee, announced on January 23, 2007.  Mr. Brill converted Series A Convertible Debentures in the amount of $80,000 into 61,539 shares of common stock at $1.30 each. The Series A Convertible  Debentures were issued during the initial capital stages in December 2006. The transaction was reported to the SEC on Form 4 filed on January 10, 2008.

Mr. Brill stated, “U.S. Dry Cleaning is vigorously pursuing its ambitious business plan to be the first consolidator of the U.S. Dry Cleaning industry.  Mr. Lee is a skilled strategist with a powerful vision. He has built an extraordinary acquisition pipeline of market-leading dry cleaning chains across the United States.  I am confident that the company will meet its goals and see significant growth in 2008.”

U.S. Dry Cleaning is the first publicly traded company in the country to consolidate the highly fragmented dry cleaning industry, estimated at approximately $9 billion by IBISWorld.  The company to date has acquired three chains in Hawaii and Southern California with consolidated revenues of $10 million per year.  It also has signed Definitive Purchase Agreements with two additional chains and Memorandums of Understanding with 3 other businesses, as announced on December 10, 2007..   The five acquisitions, when completed, are expected to add $27 million in revenue to the company’s growing revenue base. Following completion of these acquisitions, U.S. Dry Cleaning’s annualized revenue is expected to total over $37 million.  The company also has an extensive pipeline of further acquisition candidates. U.S. Dry Cleaning does not disclose where acquisition candidates are located. However, management indicated that these acquisitions, if completed, will expand U.S. Dry Cleaning beyond the current markets of Hawaii and Southern California, marking a significant step toward the company’s goal of being the first nationwide premier dry cleaning chain. 

The dry cleaning industry is extremely stable, with a history of surviving economic downturns, fads, changes in fashion, wars, depression and natural disasters. Market leading operations are highly profitable, maintaining a loyal customer base and solid operating margins.  Most are family owned and are entering a phase where older proprietors and recent inheritors are seeking greater returns on their longstanding businesses.  U.S. Dry Cleaning offers the multiple economic advantages of a nationwide public company.

About U.S. Dry Cleaning Corporation

U.S. Dry Cleaning Corporation’s mission is to create the premier national chain in the dry cleaning industry. Over the last year and half, U.S. Dry Cleaning has completed acquisitions with combined annual revenues of over $9 million. U.S. Dry Cleaning combines a management team with extensive experience in retail consolidations and premier dry cleaning operations, with a proven operating model.

U.S. Dry Cleaning intends to rapidly acquire profitable, positive cash flow operations at accretive valuations. Each acquisition target is expected to be self-sufficient and senior management is expected to remain in place to ease the assimilation. U.S. Dry Cleaning is focused on acquiring profitable businesses that hold a leading share in their individual markets.

U.S. Dry Cleaning management believes that the current absence of extensive competition to acquire the larger dominant operators will change radically as the industry consolidates. Management believes that the greatest value achieved in any consolidation occurs during the earliest phases and intends to grow as rapidly as possible to deliver shareholder value.