LPA Logistic Properties of the Americas

LaPolla Delivers 46% Sales Growth HOUSTON, July 31 /PRNewswire-FirstCall/ -- LaPolla Industries, Inc. ("LaPolla" or the "Company") (AMEX:LPA), today announced record sales of $7,576,888 for the quarter ended June 30, 2006, a 46% increase over sales of $5,206,176 for the same period in the prior year. Net loss for the second quarter was $92,737, or $0.002 per basic and diluted share, compared to a net loss of $849,362, or $0.016 per basic and diluted share during the corresponding period in 2005. The net loss for the second quarter of 2006 was primarily attributable to non-cash items relating to share-based compensation expense and deferred tax asset. The comparable factors for the corresponding prior-year period were non-cash compensation expenses of $368,364 and an increase in SG&A resulting from selling and marketing expenses supporting the Company's revenue growth, opening new sales offices, and arranging new distribution channels for a broader reach of customers. For the six months ended June 30, 2006, sales were $13,619,002 and net income was $234,270, or $0.005 per basic and diluted share. "We have met our sales goal expectations for the second quarter and believe our sales strength will continue going forward," said Doug Kramer, President and Chief Executive Officer. "The momentum in our largest business segments, coatings, foam, and equipment, continues as we trend toward sustained growth. Our sales force will continue to grow as we move toward greater market penetration of our products and services, with stronger margins," he said. Coatings sales in the second quarter ended June 30, 2006 grew to $2,716,622 from $1,904,208, up 43%, compared to the three month period ended June 30, 2005. The comparable increase of $812,414 was due to an increase in the Company's sales force and marketing promotion programs, which resulted in greater market penetration. Foam sales were $3,963,958 for the fiscal second quarter 2006 compared to $2,860,424 for the comparable 2005 quarter. The $1,103,534 or 39% improvement in foam sales was attributed to the same reasons as described for LaPolla's coatings segment. Sales for paints, sealants, and adhesives for the quarter ended June 30, 2006 each grew to $296,437, $290,740, and $26,233 respectively, from $211,443, $189,548, and $4,602 as reported in the corresponding period in 2005. The paints, sealants, and adhesives segments' comparative increase of $84,994, $101,192, and $21,631, or 40%, 53%, and 470% respectively, was due to the increase in LaPolla's sales force and limited regional advertising, marketing and promotional programs. Equipment sales in the second quarter 2006 were $196,971, an increase of $190,739, or 3,061% compared to $6,232 for the quarter ended June 30, 2005. The improvement resulted from the same reasons as detailed for the Company's coatings and foam segments. All other sales for the second quarter of 2006 grew to $85,927 compared to $29,719 for the comparable 2005 quarter resulting in an increase of $56,208, or 189%. The gain was a result of an increase in walk-in customers in LaPolla's Florida and Arizona locations needing sundry items. For additional information, please refer to the LaPolla Industries, Inc. Quarterly Report on Form 10-Q for the period ended June 30, 2006, filed with the Securities and Exchange Commission. About LaPolla Industries, Inc. LaPolla Industries, Inc. is a national manufacturer and distributor focused on several basic segments: Coatings, Foam, Paints, Sealants, Adhesives, Equipment, and All Other. Within these business segments, LaPolla has invested resources in a variety of products targeting commercial and industrial and residential applications in the roofing, construction and paint industries. For additional information on LaPolla, please visit http://www.lapollaindustries.com/. Forward-Looking Statements Statements made in this press release that are not historical facts constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21 of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward- looking statements are necessarily estimates reflecting the best judgment of senior management and express the Company's opinions about trends and factors which may impact future operating results. You can identify these and other forward-looking statements by the use of words such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "intends," "potential," "continue," or the negative of such terms, or other comparable terminology. Such statements rely on a number of assumptions concerning future events, many of which are outside of the Company's control, and involve risks and uncertainties that could cause actual results to differ materially from opinions and expectations. Any such forward- looking statements should be considered in context with the various disclosures made by the Company about its businesses including, without limitation, the risk factors described below. Although the Company believes its expectations are based on reasonable assumptions, judgments, and estimates, forward-looking statements involve known and unknown risks, uncertainties, contingencies, and other factors that could cause the Company or the Company's industries' actual results, level of activity, performance or achievement to differ materially from those discussed in or implied by any forward-looking statements made by or on the Company and could cause the financial condition, results of operations, or cash flows to be materially adversely affected. In evaluating these statements, some of the factors that you should consider include the following: financial position and results of operations, cash position and cash requirements, accounting estimates, doubtful accounts, inventories, and warranties; operations, supply chain, quality control, and manufacturing supply, capacity, and facilities; products, price of products, product lines, and product and sales channel mix; relationship with customers, suppliers and strategic partners; credit facilities; industry trends and responses to these trends; sources of competition; and outcome and effect of current and potential future litigation. All information in this release is as of June 30, 2006. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations. For further information regarding risks, uncertainties, and other factors associated with LaPolla's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of LaPolla's SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of LaPolla's press releases and additional information about LaPolla is available on the World Wide Web at http://www.lapollaindustries.com/. For more information, financial analysts, investors and press only: Suzanne M. McLeod Director of Investor Relations (281) 219-4700 (t) (281) 219-4701 (f) Company Contacts: Douglas J. Kramer, CEO John A. Campbell, CFO Michael T. Adams, CGO (281) 219-4700 (t) (281) 219-4701 (f) Website: http://www.lapollaindustries.com/ DATASOURCE: LaPolla Industries, Inc. CONTACT: Suzanne M. McLeod, Director of Investor Relations, +1-281-219- 4700, Fax: +1-281-219-4701, ; or Douglas J. Kramer, CEO, John A. Campbell, CFO, Michael T. Adams, CGO, +1-281-219-4700, Fax: +1- 281-219-4701, all of LaPolla Industries, Inc. Web site: http://www.lapollaindustries.com/

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