Knoxville based Prestige Cleaners, one of the largest independently owned drycleaning companies in the United States, has announced it has signed a definitive agreement to merge with the US Dry Cleaning Corporation (USDC), a California based firm. The company will retain its name and become the Southeast regional office for USDC. Administrative and training functions for USDC Eastern region will be based in Knoxville. Eddie Mannis, President of Prestige will become the Southeastern Regional Vice President of USDC.

Founded in 2005, USDC is the first publicly traded company in the country to consolidate the highly fragmented $9 billion a year dry cleaning industry. It is the goal of the company to acquire profitable companies that are Number 1 in their markets doing over $5 million in annual revenues. With this most recent acquisition, USDC increases its annualized revenues to over $31 million and more than triples its revenues from last year’s same quarter.

According to Mannis, “We are very excited about the merger with USDC. Prestige has built a strong business and is well positioned with a solid brand name. The merger will allow us greater operating efficiencies, increased purchasing power and access to capital markets. I have invested most of my life building this company and truly believe the merger is the best decision for the company as well as the entire Prestige team.”

“USDC recognizes the value of our employees and the loyalty of our customer base.” continued Mannis. “We anticipate a very positive impact on our employees, customers and the communities we serve. In fact, employees will receive additional benefits and stock options. We have been very fortunate to have a management team with a combined experience of more than 35 years in place at Prestige for a number of years to manage day to day operations. I, along with this team, will continue to serve at the helm of Prestige.”

Robert Y. Lee, CEO USDC said, “Our corporation is interested in merging with and acquiring high quality drycleaners. Because of its reputation for quality Prestige is one of a small number of cleaners in the country selected to be part of the organization America’s Best Cleaners. The company’s reputation and extensive involvement in the community are what attracted us to the merger. Part of USDC’s corporate philosophy is to give back to communities in which we have operations. Consequently, we have every expectation that Eddie Mannis and Prestige will continue their commitment to East Tennessee.”

According to Mannis, he was attracted to USDC in part because the company shared his philosophy of supporting the community. Prestige is an active supporter of many community projects. The company initiated and sponsors Project Classroom, a year round fund raising program to benefit public schools in both Knox County and Oak Ridge. It also sponsors HonorAir Knoxville, a program designed to honor World War II veterans by flying them free of charge to Washington D.C. to see the World War II Memorial. In addition, Prestige has processed over 75,000 coats donated to Coats for the Cold since the project’s inception. “We are still very committed to these projects and do not anticipate any change in our involvement.” said Mannis.

Mannis is also the Immediate Past President and 2006 Co-Chair of the Dogwood Arts Festival, Chairman of the UT Chancellor’s Associates Board, a member of the Board of Directors of the Helen Ross McNabb Center and a graduate of the 2006 Leadership Knoxville Class.

Prestige Cleaners has been in business since l985. It began with one store and 3 employees. The company, headquartered in Powell, has grown to include 8 stores in Knoxville, one store in Oak Ridge, its own state-of-the-art 14,000 square foot processing facility and over l60 employees.

USDC trades on the Over the Counter Bulletin Board under the symbol UDRY or UDRY.OB.