Lapolla Industries Partners With White House to Reduce Harmful Greenhouse Gases and Fight Climate Change

Lapolla Commits to Eliminating High-GWP HFCs in Products by 2016

HOUSTON–At a ceremony this week in Washington, DC, The White House announced Lapolla Industries, Inc. (OTCQB:LPAD) as an official private sector partner of the President’s Climate Action Plan, recognizing the company’s efforts to curb the use of hydrofluorocarbons (HFCs), which are potent greenhouse gases that contribute to climate change. Lapolla is a Houston-based manufacturer and global supplier of spray polyurethane foam insulation, reflective roof coatings, and equipment designed to reduce energy consumption in the residential, industrial and commercial markets. Under its commitment, Lapolla will transition its entire product line of foam and coating systems to no longer use high-GWP HFCs by 2016. Lapolla will also provide more than 18 seminars on the importance of eliminating high-GWP HFCs from the environment.

This commitment follows Lapolla’s recent announcement that they have become the first manufacturer globally to offer a third party tested and approved wall foam system that uses the Solstice® Liquid Blowing Agent. Lapolla achieved this fourth generation benchmark while working closely with Honeywell to incorporate the Solstice® LBA, a next-generation blowing agent from Honeywell. The product not only improves foam performance, but also delivers environmental benefits. Solstice® LBA has an ultra-low global warming potential of 1, which is 99.9 percent lower than today’s most commonly-used blowing agent, HFC-245fa, a hydrofluorocarbon, while retaining its insulating performance. Solstice® LBA is nonflammable, has received EPA approval under the Significant New Alternatives Policy (SNAP) Program and is not a volatile organic compound.

“We deeply appreciate the recognition of the White House for our efforts in curbing HFC usage in our products,” said Doug Kramer, President and Chief Executive Officer of Lapolla Industries. “For us, the decision to commit ourselves to end the use of high-GWP HFCs by 2016 was obvious. The impact of this new technology is profound – this is simply the best and most environmentally-friendly product in the marketplace, and we’re proud to be the first global supplier of an approved next generation wall foam system using Solstice® LBA.”

Lapolla’s foam products include spray foam insulation for residential and commercial perimeter walls, crawl spaces and attic space applications. The Company also supplies spray foam and elastomeric coatings for low slope residential and commercial roofing. Lapolla supplies polyurethane as an adhesive for board stock insulation to roofing substrates for commercial and industrial applications as well as sundry items.

Other private sector partners taking part in White House’s effort to limit the proliferation of harmful greenhouse gases include corporate giants such as Honeywell, Johnson Controls, Coca-Cola, Kroger, and Target.

About Lapolla Industries, Inc.

Lapolla Industries, Inc. is a global supplier, and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment, designed to reduce energy consumption in residential, industrial and commercial markets, for both new construction and retrofit applications. More information at www.lapolla.com.

Forward Looking Statements

Statements made in this press release that are not historical facts constitute “forward-looking statements” pursuant to Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and Private Securities Litigation Reform Act of 1995. Any such forward-looking statements should be considered in context with various disclosures made by Company about its business. All information as of date hereof. Company undertakes no duty to update any forward-looking statement.

Contacts

Lapolla Industries, Inc.
Douglas J. Kramer, CEO
Harvey L. Schnitzer, COO
Michael T. Adams, CGO
Charles A. Zajaczkowski, CFO
281-219-4700
[email protected]

or

Investor Relations Contact:
Joe Calabrese, 212-827-3772
[email protected]

Lapolla Industries Partners with Honeywell and Purdue University to Incorporate FOAM-LOK 2000-4G into Net-Zero Energy Home Project

 

Installation at Purdue University Demonstrates Lapolla’s Expansion of Environmentally Advantaged Offerings, Being the First Globally to Offer the Industries’ Latest Technology

 

Houston, TX, September 12, 2014Lapolla Industries, Inc. (“Lapolla”) (OTCQB: LPAD), a Houston-based global supplier and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment designed to reduce energy consumption in the residential, industrial and commercial markets announced today that it has partnered with Honeywell and Purdue University to incorporate Lapolla’s 4th generation wall foam insulation into Purdue’s ReNEWW Net-Zero Home Project.

Lapolla’s FOAM-LOK 2000-4G incorporates Honeywell’s Solstice® Liquid Blowing Agent (LBA), which causes closed-cell spray foam insulation to expand and provides the majority of the foam’s superior insulating properties. Lapolla recently announced they were the first globally to offer an approved wall foam system with 4th generation technology. FOAM-LOK 2000-4G was used to retrofit a residential home in West Lafayette, Ind. marking the first time their next generation technology would be used in a wall foam system in the United States. Whirlpool Corp. has also recently adopted Honeywell’s foam blowing agent technology in their U.S.-based refrigerator manufacturing for high-efficiency appliances.

Whirlpool Corp. and Purdue University have worked together to transform this 2800 square foot home built in 1928 into a net-zero energy home that will house a world-class research laboratory.

“At Lapolla, we are excited to partner with Whirlpool Corp. and Honeywell to offer Purdue University the latest in insulation cutting edge technology,” said Doug Kramer, President and Chief Executive Officer of Lapolla Industries. “We strive to be environmentally conscious and incorporate green alternatives into our offerings; we look forward to revolutionizing the industry with our latest technology.”

Solstice LBA is a next-generation blowing agent from Honeywell that not only improves foam performance, but also delivers environmental benefits including enhanced energy efficiency. Solstice LBA has an ultra-low global warming potential of 1, which is 99.9 percent lower than today’s most commonly-used blowing agent, HFC-245fa, a hydrofluorocarbon, while retaining its insulating performance. Solstice LBA is nonflammable, has received EPA approval under the Significant New Alternatives Policy (SNAP) Program and is not a volatile organic compound.

Lapolla’s foam products include spray foam insulation for residential and commercial perimeter walls, crawl spaces and attic space applications. The Company also supplies spray foam and elastomeric coatings for low slope residential and commercial roofing. Lapolla supplies polyurethane as an adhesive for board stock insulation to roofing substrates for commercial and industrial applications as well as sundry items.

 

About Lapolla Industries, Inc.

Lapolla Industries, Inc. is a global supplier, and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment, designed to reduce energy consumption in the residential, industrial and commercial markets, for both new construction and retrofit applications. More information is available at www.lapolla.com.

 

About Honeywell

Honeywell (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; turbochargers; and performance materials. Based in Morris Township, N.J., Honeywell’s shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com.

Forward Looking Statements

Statements made in this press release that are not historical facts constitute “forward-looking statements” pursuant to Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and Private Securities Litigation Reform Act of 1995. Any such forward-looking statements should be considered in context with various disclosures made by Company about its business. All information herein is as of date hereof. Company undertakes no duty to update any forward-looking statement.

Corporate Contacts:

Douglas J. Kramer, President/CEO
Harvey L. Schnitzer, COO
Michael T. Adams, CGO
Charles A. Zajaczkowski, CFO
Lapolla Industries, Inc.
Phone: 281-219-4100
Email: [email protected]

Lapolla Industries Reports Second Quarter 2014 Results

Houston, TX, August 12, 2014 Lapolla Industries, Inc. (“Lapolla”) (OTCQB: LPAD), a Houston-based global supplier and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment designed to reduce energy consumption in the residential, industrial and commercial markets for both new construction and retrofit applications, today announced financial results for the three month period ended June 30, 2014.

Second Quarter Financial Highlights

For the second quarter of 2014, Lapolla generated sales of $18.7 million, as compared to $17.8 million during the same period in 2013. During the second quarter of 2014, Lapolla’s gross profit was $3.9 million, as compared to $3.8 million for the second quarter of 2013. Adjusted EBITDA for the second quarter was $611,082, as compared to $660,361 in the same period of 2013.

For the second quarter of 2014, Lapolla reported foam segment sales were $16.2 million as compared to $14.9 million in the same period of 2013. Foam segment profit was $819,844 during the second quarter 2014, as compared to $670,559 for the same quarter in 2013. The second quarter 2014 coatings segment sales were $2.5 million versus $2.9 million for the same period in 2013. Coatings segment profit was $354,966, as compared to $446,542 for the second quarter in 2013.

“During the second quarter of 2014, our revenues were in line with last year and our operating expenses were lower by over 4%,” stated Doug Kramer, CEO and President of Lapolla Industries. “This is an exciting time to be in our industry as SPF insulation becomes mainstream as consumers, building owners and multi-family facility managers recognize the environmental and financial benefits Lapolla products provide. Lapolla recently announced its Next Generation technology, utilizing the latest blowing agent, which essentially eliminates ODP and GDP, making our product green and environmentally friendly. This new development solidifies Lapolla as a global technology leader, being the first in the world to deliver this cutting edge technology for wall foam insulation,” concluded Mr. Kramer.

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, available at www.lapolla.com.

About Lapolla Industries, Inc.

Lapolla Industries, Inc. is a global supplier, and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment, designed to reduce energy consumption in the residential, industrial and commercial markets, for both new construction and retrofit applications. More information is available atwww.lapolla.com.

Non-GAAP Financial Measures:

Lapolla Industries utilizes Adjusted EBITDA to assist it in reviewing financial results and for management incentives. Adjusted EBITDA is defined as EBITDA increased by total share based compensation included in net income or loss. Lapolla’s management utilizes Adjusted EBITDA in an effort to provide information that reflects the Company’s economic performance. Lapolla’s management team reviews their monthly financial results on an Adjusted EBITDA basis. Adjusted EBITDA has no impact on reported sales. Adjusted EBITDA is used as a supplemental financial measure by management to describe Lapolla’s operations and economic performance to financial institutions, including the economic results of Lapolla’s operations; and repeatable operating performance that is not distorted by non-recurring items, certain other non-cash items, or market volatility. Adjusted EBITDA is not prepared in accordance with GAAP. Adjusted EBITDA should not be considered as an alternative to net income or loss, income or loss from operations, cash flows from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP.

Forward Looking Statements

Statements made in this press release that are not historical facts constitute “forward-looking statements” pursuant to Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and Private Securities Litigation Reform Act of 1995. Any such forward-looking statements should be considered in context with various disclosures made by Company about its business. All information herein is as of date hereof. Company undertakes no duty to update any forward-looking statement.

Lapolla Industries Contacts:

Douglas J. Kramer, CEO

Harvey L. Schnitzer, COO

Michael T. Adams, CGO

Charles A. Zajaczkowski, CFO

Tel: (281) 219-4700

Lapolla Industries is the First Globally to Incorporate Honeywell’s Solstice® Liquid Blowing Agent for Spray Foam Wall Insulation

Installation at Purdue University Demonstrates Lapolla’s
Expansion of Environmentally Advantaged Offerings with Solstice LBA

Houston, TX, July 28, 2014 – Lapolla Industries, Inc. (“Lapolla”) (OTCQB: LPAD), a Houston-based global supplier and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment designed to reduce energy consumption in the residential, industrial and commercial markets announced today that it is the first company globally to develop the technology and commercially release Honeywell’s new Solstice® Liquid Blowing Agent (LBA) in spray foam insulation wall system in the USA.

Solstice LBA allows Lapolla closed-cell spray foam insulation to expand and contribute to the foam’s superior insulating properties. Solstice LBA is a next-generation blowing agent from Honeywell that not only improves foam performance, but also delivers environmental benefits including enhanced energy efficiency. Solstice LBA has an ultra-low global warming potential of 1, which is 99.9 percent lower than today’s most commonly-used blowing agent, HFC-245fa, a hydrofluorocarbon, while retaining its insulating performance. Solstice LBA is nonflammable, has received EPA approval under the Significant New Alternatives Policy (SNAP) Program and is not a volatile organic compound.

“At Lapolla, we are environmentally conscious and incorporate green alternatives into our offerings,” said Doug Kramer, President and Chief Executive Officer of Lapolla Industries. “We are pleased to be the first in the world to incorporate Solstice Liquid Blowing Agent into our spray foam for walls, and we are confident that our foam, which has always been cutting edge, is fully credentialed and now one step above the rest of our peers. The product will soon be available globally.”

The next high profile installation of Lapolla’s leading edge wall system formulated with Solstice LBA will take place at Purdue University in West Lafayette, Indiana. Lapolla will use its FOAM-LOK spray foam blown with Solstice LBA to retrofit an off-campus 1920’s vintage home that researchers are transforming into a net-zero energy, water and waste structure and live-in laboratory. It marks the first time Solstice LBA will be employed in a wall system of a university in the United States. Researchers from Purdue University and Whirlpool Corporation will be monitoring the home’s energy usage after the spray foam wall installation to demonstrate its efficiency.

Lapolla’s foam products include spray foam insulation for residential and commercial perimeter walls, crawl spaces and attic space applications. The Company also supplies spray foam and elastomeric coatings for low slope residential and commercial roofing. Lapolla supplies polyurethane as an adhesive for board stock insulation to roofing substrates for commercial and industrial applications as well as sundry items.

“Solstice LBA provides builders and contractors with significant performance and environmental benefits in closed-cell spray foam wall and roof systems at costs that are competitive with other blowing agents,” said Laura Reinhard, Honeywell’s global business manager for spray foam. “Our collaboration with Lapolla allows us to provide wall-to-wall benefits for commercial and residential architects, builders and renovators. Lapolla’s best in class spray foam coupled with their national and international reach makes them an ideal partner to launch Solstice LBA for use in foam wall systems.”

About Lapolla Industries, Inc.
Lapolla Industries, Inc. is a global supplier, and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment, designed to reduce energy consumption in the residential, industrial and commercial markets, for both new construction and retrofit applications. More information is available at www.lapolla.com.

About Honeywell
Honeywell (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; turbochargers; and performance materials. Based in Morris Township, N.J., Honeywell’s shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com.

Forward Looking Statements
Statements made in this press release that are not historical facts constitute “forward-looking statements” pursuant to Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and Private Securities Litigation Reform Act of 1995. Any such forward-looking statements should be considered in context with various disclosures made by Company about its business. All information herein is as of date hereof. Company undertakes no duty to update any forward-looking statement.

Corporate Contacts:
Douglas J. Kramer, CEO
Harvey L. Schnitzer, COO
Michael T. Adams, CGO
Charles A. Zajaczkowski, CFO
Lapolla Industries, Inc.
Phone: 281-219-4100
Email: [email protected]

Lapolla Industries Launches Free Investor Relations App

Investors can download the new mobile app at Apple’s App store and Google Play

HOUSTON–June 23, 2014–Lapolla Industries, Inc. (“Lapolla”) (OTCQB:LPAD), a Houston-based global supplier and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment, announced the release today of its investor relations app for iPhone, iPad and Android mobile devices now available for free at Apple’s App Store for the iPhone and iPad http://bit.ly/lapollaitunes and at Google Play http://bit.ly/1qoiMjm for Android mobile devices.

The Lapolla Industries investor relations app, which is powered by theIRapp(TM), allows users to navigate the Company’s investor relations materials as well as receive a stock quote and other important stock information. Features in the app include the latest press releases and SEC filings as well as marketing and background information, videos and presentations from the Company. Sharing functionality via email, Twitter and Facebook is available as well as the ability for investors to be notified when new information is posted to the company’s IR app.

“The Lapolla Industries investor relations app for iPhone, iPad and Android mobile devices will help our existing and potential shareholders more easily track our company’s updates and stock trading activity. This is increasingly important for those tracking our Company,” commented Doug Kramer, President and Chief Executive Officer of Lapolla Industries. “All investors are increasingly using mobile technologies to stay up-to-date on the latest company news and market events. By launching the Lapolla Industries investor relations app, we are offering our investors a direct path to the most pertinent information surrounding our IR activities, including our latest news releases, SEC filings, and videos.”

About Lapolla Industries, Inc.

Lapolla Industries, Inc. is a global supplier, and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment, designed to reduce energy consumption in the residential, industrial and commercial markets, for both new construction and retrofit applications. More information is available at www.lapolla.com.

CONTACT: Investors:
KCSA Strategic Communications
Todd Fromer, 212-896-1215
[email protected]

or
Phil Carlson, 212-896-1233
[email protected]

or

Public Relations:
KCSA Strategic Communications
Samantha Wolf , 212-896-1220
[email protected]

or

Jon Goldberg, 212-896-1282
[email protected]

or

Corporate:
Lapolla Industries, Inc.
Douglas J. Kramer

or

Michael Adams
Phone: 281-219-4100
[email protected]

SOURCE: Lapolla Industries, Inc.

Ty Pennington Signs on as Spokesperson for Lapolla Industries, Leading Spray Foam Insulation Brand

Star of “Extreme Makeover: Home Edition” to Raise Awareness about the Advantages of Choosing Spray Foam Insulation during Home Construction and Renovations
Houston, TX, May 19, 2014Lapolla Industries, Inc. (“Lapolla”) (OTCQB: LPAD), a Houston-based global supplier and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment, has announced that home improvement superstar, Ty Pennington, will act as the Company’s official spokesperson. Ty will promote Lapolla’s products in upcoming national and local campaigns, as well as make appearances at international trade shows and participate in consumer events, media relations and social media activities.

“Ty Pennington is one of the most trusted names and faces in home improvement and renovation. We view our partnership with Ty as an opportunity to reach a broader audience to educate them on the importance and value of spray foam insulation,” said Doug Kramer, President and Chief Executive Officer of Lapolla Industries. “Like Lapolla’s foam insulation, Ty is recognized and respected by contractors, builders, and home owners for his innovative and intelligent techniques for improving homes.”

Mr. Pennington is best known for hosting and leading the design team on “Extreme Makeover: Home Edition.” Prior to that role, he was the lead carpenter on TLC’s “Trading Spaces.” He is also the author of two books on home improvement.

“For years, I’ve been bringing attention to the importance of purposeful and creative home renovation,” said Ty Pennington. “By teaming up with Lapolla, we have an opportunity to build awareness about the importance of proper insulation to create significant energy savings to the entire residential market. The best home construction in the world needs the best, most efficient insulation to be truly effective for home owners.”

Ty’s role with the Company is aligned with the beginning of the home construction and renovation season, a time when Lapolla’s environmentally friendly products are top of mind. The Company’s products are known for their ability to reduce energy consumption in the residential, industrial and commercial markets for both new construction and retrofit applications, preventing heat or air conditioning from escaping. Lapolla’s spray foam can cut a buildings’ energy use by up to 40 percent for the life of the structure.

Lapolla also recently announced that its AirTight®Division is implementing a Multi-Family Energy Savings Program to contribute to additional savings – amounting to more than 55 percent – for landlords and property owners. This four-component program is a turn-key service that provides energy assessments and analysis with the assistance of independent consultants, project design, and regulatory due diligence to secure rebates from state and utility authorities.

Lapolla’s foam products include spray foam insulation for residential and commercial perimeter walls, crawl spaces and attic space applications. The Company also supplies spray foam and elastomeric coatings for low slope residential and commercial roofing. Lapolla supplies polyurethane as an adhesive for board stock insulation to roofing substrates for commercial and industrial applications as well as sundry items.

About Lapolla Industries, Inc.
Lapolla Industries, Inc. is a global supplier, and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment, designed to reduce energy consumption in the residential, industrial and commercial markets, for both new construction and retrofit applications. More information is available at www.lapolla.com.

Forward Looking Statements
Statements made in this press release that are not historical facts constitute “forward-looking statements” pursuant to Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and Private Securities Litigation Reform Act of 1995. Any such forward-looking statements should be considered in context with various disclosures made by Company about its business. All information herein is as of date hereof. Company undertakes no duty to update any forward-looking statement.

Investor Contacts:
Todd Fromer / Phil Carlson
KCSA Strategic Communications
Phone: 212-896-1215 / 212-896-1233
Email: [email protected] / [email protected]

Media Contacts:
Samantha Wolf / Jon Goldberg
KCSA Strategic Communications
Phone: 212-896-1220 /212-896-1282
Email: [email protected]  / [email protected]

10-Q: LAPOLLA INDUSTRIES INC (LPAD)

(EDGAR Online via COMTEX) — Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Overview of Presentation

This financial review presents our operating results for the three months ended March 31, 2014 and 2013, and our financial condition at March 31, 2014. The presentation includes our non-GAAP financial measures EBITDA and Adjusted EBITDA and a reconciliation of EBITDA and Adjusted EBITDA to the GAAP measures most directly comparable thereto. The GAAP measure most directly comparable to EBITDA and Adjusted EBITDA is net income or loss. The non-GAAP financial measures of EBITDA and Adjusted EBITDA should not be considered as an alternative to net income or loss or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA are not presentations made in accordance with GAAP and have important limitations as analytical tools. You should not consider EBITDA or Adjusted EBITDA in isolation or as substitutes for analysis of our results as reported under GAAP. Because EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income and is defined differently by different companies, our definitions of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Except for the historical information contained herein, the following discussion contains forward-looking statements that are subject to known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. We discuss some of these risks, uncertainties and other factors throughout this report and provide a reference to additional risks under the caption “Risk Factors” in Item 1A of Part II below. In addition, the following review should be read in conjunction with information presented in Part I, Item 6 – Selected Financial Data relating to non-GAAP financial measures EBITDA and Adjusted EBITDA and the financial statements and related notes for the year ended December 31, 2013 contained in the annual report on Form 10-K for the year ended December 31, 2013. Referto Note 1 – Summary of Significant Accounting Policies for further information regarding significant accounting policies and Note 15 – Business Segment and Geographic Area Information in our financial statements listed under Item 15 of Part IV of this report for further information regarding our business segments and geographic area data. See alsoNote 1 in the notes to the financial statements listed under Item 15 of Part IV of this report for “Critical Accounting Policies”.

Outlook

The Company’s outlook remains aggressive and positive, as we expect sales to continue to grow, especially internationally, to record levels in 2014 and beyond. Our optimism is based on growing global consumer awareness about energy efficient foams and coatings and concomitant reductions in energy costs immediately after application. Lapolla’s business was affected in the first quarter by seasonal factors, specifically unusually persistent cold weather (“Seasonality”). Sales of our products tend to be lowest during the first and fourth fiscal quarters, however, sales during the second and third fiscal quarters are usually comparable and marginally higher. The markets for our products are highly competitive; however, we believe that our competitive advantages are rooted in our product formulations, credentials, approvals, performance, pricing, and technical customer service. In addition, we offer the flexibility, quality of products and responsiveness that a smaller company can offer. This outlook is based on a number of assumptions relating to our business and operations which are subject to change, some of which are outside our control. A variation in our assumptions may result in a change in this outlook.

Performance for the Three Months Ended March 31, 2014 compared to the Three Months Ended March 31, 2013

Overall Results of Operations

The following table presents selected consolidated financial and operating data derived from the unaudited consolidated financial statements of the Company as of the dates and for the periods indicated. In addition, the table presents our unaudited non-GAAP financial measure EBITDA and Adjusted EBITDA, which we use in our business as an important supplemental measure of our performance, and includes our reconciliation to net income or loss, its most directly comparable financial measure calculated and presented in accordance with GAAP.


                                                                         March 31,
                                                                 2014                  2013
        Summary of Overall Results of Operations
          Sales                                             $ 16,102,200          $ 16,995,510
          Operating Loss                                        (503,323 )            (203,710 )
          Other (Income) Expense                                 543,191               376,328
          Net Loss                                            (1,046,514 )            (580,038 )
          EBITDA (Unaudited)                                $   (319,118 )        $    137,628
          Adjusted EBITDA (Unaudited)                       $    (93,833 )        $    447,577
        Reconciliation of EBITDA and Adjusted EBITDA
        to Net Loss:
          Net Loss:                                         $ (1,046,514 )        $   (580,038 )
             Additions / (Deductions):
               Interest Expense                                  280,711               263,730
               Interest Expense - Related Party                  198,991               183,202
               Interest Expense - Amortization of
        Discount                                                  45,108                    -
               Tax Expense (Benefit)                              25,765                24,142
               Depreciation                                      108,391               117,979
               Amortization of Other Intangible
        Assets                                                    68,430               128,613
          EBITDA                                            $   (319,118 )        $    137,628
             Additions / (Deductions):
        Share Based Compensation (1)                             225,285               309,949
          Adjusted EBITDA                                   $    (93,833 )        $    447,577
        


(1) Represents non-cash share based compensation for the periods then ended.

Sales

The following is a summary of sales for the three months ended:

March 31, 2014 March 31, 2013

Sales decreased $893,310, or 5.3%, for the first quarter of 2014 compared to the first quarter of 2013. Foam sales decreased $880,953, or 5.9% and coatings sales decreased $12,357, or 0.6%, quarter over quarter, due to Seasonality. Our AirTight Division provided additional market penetration, resulting in approximately $1.9 Million and $3.5 Million in sales for the first quarter of 2014 and 2013, respectively. Sales pricing changes added approximately $34,514, or 0.2%, all of which related to coatings sales, while sales volumes decreased approximately $927,824, or 5.5%, of which $880,953, or 5.9% was for foam sales and $46,871, or 2.2%, for coatings sales, for the first quarter of 2014, compared to, sales pricing changes added approximately $616,575, or 3.3%, of which $607,051, or 3.8% was for foam sales and $9,524, or 0.4% was for coatings sales, while sales volumes decreased approximately $2,271,046, or 12.2%, of which $1,810,855, or 11.2% was for foam sales and $460,191, or 18.1%, for coatings sales, for the first quarter of 2013.

Cost of Sales

Cost of sales decreased $328,590, or 2.5%, for the three months ended March 31, 2014 compared to the three months ended March 31, 2013. Cost of sales decreased $396,492, or 3.3%, for our foams, and increased $67,902, or 4.6%, for our coatings, quarter over quarter, due primarily to decreases in sales and higher freight costs. We had an 8.7% increase in freight costs and an approximate 1.5% decrease in material costs, in the first quarter of 2014, compared to a 29.2% decrease in freight costs and an approximate 8.1% increase in material costs, in the first quarter of 2013. Freight costs increased due to higher per trip rates due to increased market demand for transportation from extraordinarily cold weather patterns and material costs decreased due to taking advantage of payment discounts from more effective utilization of cash in the first quarter of 2014 whereas freight costs decreased from more effective management of logistics and material costs increased due to increased pricing from feedstock suppliers in the first quarter of 2013.

Gross Profit

Our gross profit decreased $564,720, or 15.5%, for the first quarter of 2014 compared to the first quarter of 2013, due to the 8.7% increase in freight costs and decrease of 5.3% in our sales, offset by a decrease of approximately 1.5 in material costs. Gross margin percentage decreased 2.3%, for the three months ended March 31, 2014, due to higher freight, offset by lower material costs, compared to an increase of 2.2%, for the three months ended March 31, 2013, due to lower freight, offset by higher material costs.

Operating Expenses

Our total operating expenses are comprised of selling, general and administrative expenses, or SG&A, professional fees, depreciation, amortization of other intangible assets, and consulting fees. These total operating expenses decreased $265,107, or 6.9%, in the first quarter of 2014 compared to the first quarter of 2013, due to decreases of $286,917 for professional fees, $744 for depreciation, and $60,183 for amortization of other intangible assets, offset by increases of $28,243 for SG&A and $54,494 for consulting fees.

SG&A increased $28,243, or 0.9%, due to increases of $15,502 for advertising, $62,608 for bad debts from a slight increase in insolvencies, $32,789 for insurances from higher premiums due to increased loss ratios, $5,708 for investor relations, $69,703 for payroll and related employee benefits from additions to our workforce, $40,665 for sales commissions from the use of more independent sales representatives to penetrate select target markets, and $9,196 for travel and related services, offset by decreases of $33,563 for corporate office expenses, $42,151 for distribution from a more efficient management of inventory being held in and a reduction in outside warehouses, $27,776 for marketing and promotions relating to more streamlined programs, $19,776 for rents, and $84,663 for share based compensation due to completion of vesting of shares originally granted by the Company pursuant to an advisory and consultant agreement in February 2011 during the current period.

Professional fees decreased $286,917, or 93.5%, from the first quarter of 2014 compared to the first quarter of 2013, due primarily to recovery of previously paid legal fees from insurance companies for litigation involving alleged product defects.

Depreciation expense decreased $744, or 1.7%, in the three months ended March 31, 2014 compared to the three months ended March 31, 2013, due to a decrease in depreciable assets primarily vehicles.

Amortization of other intangible assets expense decreased $60,183, or 46.8%, in the quarter ended March 31, 2014 compared to the quarter ended March 31, 2013, due to a decrease in amortizable assets specifically customer lists and trade names.

Consulting fees increased $54,494, or 66.1%, in the first quarter of 2014, compared to the first quarter of 2013, due primarily to a reversal in the prior comparable period for disputed consulting services, absent which consulting fees would be relatively even quarter over quarter.

Other (Income) Expense

Our total other (income) expense is comprised of interest expense, interest expense – related party, interest expense – amortization of discount, gain or loss on derivative liability, and other, net. Total other (income) expense increased $166,863, or 44.3% from the first quarter of 2014, compared to the first quarter of 2013, due to increases of $16,981 in interest expense, $15,789 in interest expense – related party, $45,108 in interest expense – amortization of discount, offset by decreases of $45,913 in gain on derivative liability, and $43,072 in other, net.

Interest expense increased $16,981, or 6.4%, for the three months ended March 31, 2014, compared to the three months ended March 31, 2013, due to an increase in indebtedness from financing institutions.

Interest expense – related party increased $15,789, or 8.6%, in the three months ended March 31, 2014, compared to the three months ended March 31, 2013, of which $14,671 was for share based compensation expense classified as interest expense due to shares being issued in connection with a personal guaranty required from the Chairman and principal stockholder to secure the New Enhanced Note and $1,118 was for accrued interest for the Note Payable – Related Party between the Company and the Chairman and principal stockholder.

Interest expense – amortization of discount was $45,108 for the first quarter of 2014 and related to the purchase discount associated with the New Enhanced Note. There was no interest expense – amortization of discount in the prior comparable period.

We had a decrease in the gain on derivative liability of $45,913, or 100%, for the three months ended March 31, 2014, compared to the three months ended March 31, 2013, due to expiration of all outstanding warrants causing the derivative liability in the prior comparable period.

Our other, net decreased $43,072, or 174.4%, for the quarter ended March 31, 2014, compared to the quarter ended March 31, 2013, primarily related to additions and dispositions of assets.

Net (Loss)

Our net loss increased $466,476, or 80.4%, in the first quarter of 2014, compared to the first quarter of 2013, due to decreases of $564,720, or 15.5% in gross profit, $45,913, or 100% in gain on derivative liability, $43,072, or 174.4% in other, net, and increases of $28,243, or 0.9% in SG&A, $16,981, or 6.4%, in interest expense, $15,789, or 8.6% in interest expense – related party, $45,108, or 100%, in interest expense – amortization of discount, $54,494, or 66.1%, in consulting fees, offset by decreases of $286,917, or 93.5%, in professional fees, $744, or 1.7%, in depreciation, and $60,183, or 46.8%, in amortization of other intangible assets. Net loss per share was $0.01 for the quarter ended March 31, 2014 and 2013, respectively.


        Results of Business Segments
        The following is a summary of sales by segment at:
        Segments     March 31, 2014      March 31, 2013
        Foam        $    14,020,272     $    14,901,225
        Coatings    $     2,081,928     $     2,094,285
        


Foam Segment

Foam sales decreased $880,953, or 5.9%, in the first quarter of 2014, compared to the first quarter of 2013, due to Seasonality. Foam equipment sales increased $37,620, or 11.3%, quarter over quarter. Foam cost of sales decreased $396,492, or 3.3%, in the first quarter of 2014, compared to the first quarter of 2013, due to decreases of $880,953, or 5.9%, in sales, and improved manufacturing efficiencies, and a decrease of approximately 1.5% in material costs, offset by an increase of $56,375, or 7.8%, in freight. Foam gross profit decreased $484,461, or 16.1%, primarily from lower sales volumes and gross margin percentage decrease of 2.2%, primarily from increased freight, offset by decreased material costs, from the first quarter of 2014 compared to the first quarter of 2013. Foam segment profit decreased $541,173, or 99.9%, for the first quarter of 2014, compared to the first quarter of 2013, primarily due to a decrease of $484,461, or 16.1%, in segment gross profit and an increase of $56,712, or 2.3%, in segment operating expenses.

Coatings Segment

Coatings sales decreased $12,357, or 0.6%, in the first quarter of 2014, compared to the first quarter of 2013, due to Seasonality. Coatings cost of sales increased $67,902, or 4.6%, in the first quarter of 2014, compared to the first quarter of 2013, due to increases of $14,935, or 16.6%, in freight and an approximate 0.1% in material costs. Coatings gross profit decreased $80,259, or 12.8%, and gross margin percentage decreased 3.6%, primarily from higher freight costs, from the first quarter of 2014, compared to the first quarter of 2013. Coatings segment profit decreased $108,297, or 38.9%, for the first quarter of 2014, compared to the first quarter of 2013, primarily due to an increase of $28,038, or 8.1%, in segment operating expenses, an approximate 1.7% increase in sales prices, and a decrease of $80,259, or 12.8%, in gross profit.

Total Segments

Total segment sales decreased $893,310, or 5.3%, cost of sales decreased $328,590, or 2.5%, and gross profit decreased $564,720, or 15.5%, in the first quarter of 2014, compared to the first quarter of 2013. Total segment profits decreased $649,470, or 79.2%, due primarily to a decrease of $564,720, or 15.5%, in gross profit from a decrease of $893,310, or 5.3%, in sales volumes, and an increase of $71,310, or 8.7%, in freight costs, in the first quarter of 2014 compared to the first quarter of 2013.

Liquidity and Capital Resources

We do not maintain any cash on hand by design. Instead, we maintain a $13 Million asset based bank financed Revolver Loan that includes an automatic cash sweep feature that identifies any cash available in our bank accounts at the end of a banking business day and then applies that cash to reduce our outstanding Revolver Loan balance for that day to fund our continuing operations. The reduction serves to decrease our daily interest expense to the extent cash is identified and swept over to reduce the Revolver Loan. Disbursements are paid daily by our bank from cash being made available under our Revolver Loan based on a borrowing base calculation prepared daily for funding. Cash available under our Revolver Loan based on the borrowing base calculation at March 31, 2014 and 2013, was $2,217,907 and $376,026, respectively. On December 10, 2013, we borrowed $7.2 Million from two Enhanced Capital entities to refinance the remaining $3,346,762 balance outstanding on the Prior Enhanced Note and increase our working capital with the difference for the New Enhanced Note. Stockholders’ Equity decreased $640,030, or 50.9%, from the period ended December 31, 2013 to March 31, 2014, due to the comprehensive loss of $1,046,514, offset by additions to common stock par value of $5,849 ad additional paid in capital of $400,635 from issuances of restricted common stock for share based compensation and interest expense – related party, compared to, a decrease of $95,766, or 8.0%, from the period ended December 31, 2012 to the period ended March 31, 2013, due to the comprehensive loss of $582,242, offset by additions to common stock par value of $11,149 and additional paid in capital of $475,327 from issuances of restricted common stock for share-based compensation and interest expense – related party.

Management believes that the cash generated from operations and the Revolver Loan availability, subject to borrowing base limitations which may adversely impact our ability to raise capital, based on budgeted sales and expenses and implemented minimum sales margin and cost controls, are sufficient to fund operations, including capital expenditures, for the next 12 months. Notwithstanding the foregoing, we evaluate capital raising opportunities for private placements of debt or common or preferred stock from accredited sophisticated investors from time to time to not only gage market conditions but also to ensure additional capital is readily available to fund aggressive growth developments. If we raise additional capital from the sale of capital stock (except for permitted issuances) or debt (other than permitted indebtedness), we are required under the New Enhanced Note to prepay, including any prepayment penalty, the amount raised up to the amount outstanding under the New Enhanced Note as of the date of the closing of the transaction out of the net proceeds of the capital raised.

Net cash provided by operating activities was $604,889 for the three months ended March 31, 2014, compared to net cash used in operations of $1,100,384 for the three months ended March 31, 2013. The cash provided by operations for the first quarter of 2014 compared to the cash used in the first quarter of 2013 was attributable to the net loss of $1,046,514 for the period, including the effect of adjustments to reconcile net loss to cash provided by operating activities and adjusting for non-cash items, primarily decreases of $9,588 in depreciation due to a decrease in depreciable assets for vehicles, $60,183 in amortization of other intangible assets due to a decrease in amortizable assets for customer lists and non-competes from previous acquisitions, and $84,664 in share based compensation expense due to completion of vesting of shares originally granted by the Company pursuant to an advisory and consultant agreement in February 2011, offset by increases of $62,608 in provision for losses due to a slight increase in customer insolvencies, $15,789 in interest expense – related party due to the New Guaranty Shares being issued in connection with the New Enhanced Note being classified as interest expense, and $45,108 in interest expense – amortization of discount due to the purchase discount being amortized over the life of the New Enhanced Note, which matures December 2016. The foregoing was augmented by decreases of $597,006 in inventories, $305,249 in prepaid in prepaid expenses and other current assets, $24,008 in deposits and other non-current assets, and $224,773 in accrued expenses and other current liabilities, and increases of $627,571 in trade receivables, $79,260 in other intangible assets, and $812,973 in accounts payable, due primarily to operating activities during the period ended March 31, 2014.


        Contractual Obligations
                                                                   Payments Due By Period
                                         Less Than         1 to 3          4 to 5         More Than
                                          1 Year           Years            Years          5 Years          Total
        Revolving Credit Note          $        -      $  4,074,529     $        -      $        -      $  4,074,529
        Note Payable - Related Party            -                -        1,300,000              -         1,300,000
        Notes Payable - Enhanced
        Capital                                 -         6,796,528              -               -         6,796,528
        Long-Term Debt Obligations              -                -               -               -                -
        Estimated Interest Payments
        on Long-Term Debt and Loan
        Obligations                        862,785        1,292,177         385,793              -         2,540,755
        Purchase Order Obligations          39,740               -               -               -            39,740
        Operating Lease Obligations        407,350          490,464              -               -           897,814
              Total                    $ 1,309,875     $ 12,653,698     $ 1,685,793     $        -      $ 15,649,366
        


*The information provided in the table above relates to bank and other credit instruments, and purchase and operating lease obligations.

The Company has four material debt covenants to comply with relating to its Loan Agreement: (i) Capital expenditures are limited to $625,000 on an annual basis,

The Company has four material debt covenants to comply with relating to its New Enhanced Note: (i) Capital expenditures are limited to $625,000 on an annual basis, (ii) A minimum Adjusted EBITDA which cannot for the three (3) months ending on the last day of each month set forth in a schedule be less than the corresponding amount set forth in the schedule for such period, (iii) Maintain an FCCR, tested monthly as of the last day of each calendar month, in each case for the most recently completed twelve calendar months, equal to a minimum ratio of 0.90 to 1.0 from December 2013 to February 2014, 0.80 to 1.0 from March 2014 to April 2014, 0.90 to 1.0 from May 2014 to June 2014, 1.0 to 1.0 for July 2014, and 1.25 to 1.0 from August 2014 and thereafter, and (iv) Maintain minimum liquidity equal to or greater than $500,000. At March 31, 2014, we were in compliance with all of our New Enhanced Note debt covenants.

Net cash used in investing activities was $135,658 for the first quarter of 2014, reflecting an increase of $125,045 when compared to $10,613 for the first quarter of 2013. We invested $188,658 in property, plant and equipment in the first quarter of 2014, of which $5,693 was for computers and software for the sales force, $27,862 was for machinery and equipment related to our manufacturing facilities, $118,048 was for a new vehicle, and $37,055 was for construction in progress for improvements to our manufacturing facilities. We recaptured an aggregate of $53,000 from dispositions of property, plant and equipment, for vehicles trade in or sold. We invested $10,613 in property, plant and equipment in the first quarter of 2013, of which $1,835 was for office furniture and equipment, $5,637 was for computers and software for the sales force, $288 was for machinery and equipment related to our manufacturing facilities, and $2,853 was for construction in progress.

Net cash used in financing activities was $469,231 for the three months ended March 31, 2014, compared to net cash provided of $1,113,201 for the three months ended March 31, 2013. We borrowed a cumulative aggregate of $16,164,029 and made principal repayments for a cumulative aggregate of $16,628,662 under our Bank Revolver Loan, and $4,598 on our long term debt primarily related to financed vehicles, in the first quarter of 2014. We borrowed a cumulative aggregate of $17,299,423 and made principal repayments for a cumulative aggregate of $16,019,562 under our Bank Revolver Loan, an aggregate of $159,999 under our Prior Enhanced Note, and $6,661 on our long term debt primarily related to financed vehicles, in the first quarter of 2013.

May 15, 2014

Lapolla Industries Signs First AirTight® Multi-Family Energy Savings Program Agreement with Home Properties

First Year Energy Savings Expected to be in Excess of 55%

HOUSTON–Lapolla Industries, Inc. (“Lapolla”) (LPAD), a Houston-based global supplier and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment designed to reduce energy consumption in the residential, industrial and commercial markets, today announced that its AirTight® Division (“AirTight”) has entered into its first Multi-Family Energy Savings Program agreement with the multi-billion dollar REIT, Home Properties, Inc. (HME), to implement its proprietary energy savings program at the Jacob Ford Village Apartments located in Morristown, New Jersey.

Home Properties is a multi-billion dollar Real Estate Investment Trust based in Rochester, New York that owns and manages more than 41,000 residential apartment units, primarily in the Mid-Atlantic and North Eastern United States.

The first agreement is with Jacob Ford Village, a two-story, garden apartment complex that consists of 270 residential units. Under the terms of the agreement, AirTight will implement and install its all-inclusive energy savings package throughout the entire multi-family unit complex at a cost exceeding $1 million. A recent assessment conducted by AirTight and Karpman Consulting LLC, an independent energy company, reported that the program will yield annual energy savings in excess of 55 percent for Home Properties.

“Our Multi-Family Energy Savings Program harnesses cutting edge technology with its proprietary design and equipment. AirTight’s four-component energy savings program, including installation of Lapolla’s spray polyurethane foam, provides a property owner with a substantial energy reduction. This will increase property value and resident comfort, and will likely lead to reduced vacancy rates. AirTight has documented significant savings for landlords and property managers on their energy bills. We believe that this is the only end-to-end solution in the marketplace that can provide annual energy savings of more than 50 percent in any region or climate for multi-family properties,” stated Peter Pierangeli, Vice President of the AirTight Division. “For now, our concentration remains on the United States, and we plan to introduce this to our global customers and partners.”

Lapolla’s AirTight Division primarily focuses on marketing, promoting, and selling energy saving products and energy reduction services. The AirTight Multi-Family Energy Savings Program is a turn-key project service. This service provides energy assessments and analysis with the assistance of independent consultants, project design, regulatory assistance to facilitate potential rebates from state and utility authorities, and project management services. This energy conservation program, conceived and put into place by Lapolla’s Chairman, Richard J. Kurtz, was designed to save landlords substantial energy costs while dramatically reducing the properties’ carbon footprint and increasing the tenants’ comfort. This will increase the overall value and ROI of the property.

Commenting on the new initiative, Brent Kohere, Regional Vice President for Home Properties, stated, “This is a winning situation for all parties involved. The residents will have greater comfort in their homes and should see a reduction in their energy costs. The property as a whole will be more energy efficient, reducing overall energy consumption and lowering energy costs. It is a win for Home Properties to partner with experts in the field like the AirTight team, and the rebate/incentive plan will enhance an already solid return on investment for the capital improvement. Lastly, we see this as a win for AirTight because partnering with a company with a reach as great as ours will enable them to deliver excellent energy conservation results and promote their unique program which we anticipate will generate notable energy savings.”

“Home Properties is a great player in the multi-family space, and we are confident that our comprehensive solution will enhance the energy-efficiency of the Jacob Ford Village and contribute to great savings,” stated Doug Kramer, CEO of Lapolla Industries. “This is only the tip of the iceberg when it comes to market opportunity for our AirTight Multi-Family Energy Savings Program; we believe that the U.S. market alone for this type of program is close to $19.2 billion dollars. Lapolla is addressing a significant unmet need in the global property management and construction market, and we are looking forward to capitalizing on this opportunity and expanding our program throughout the United States, and ultimately internationally as well.”

Home builders and renovators around the world recognize Lapolla’s brand as having the leading offering when it comes to energy-saving spray foam solutions to offer customers, both commercial and residential.

About Lapolla Industries, Inc.
Lapolla Industries, Inc. is a global supplier, and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment, designed to reduce energy consumption in the residential, industrial and commercial markets, for both new construction and retrofit applications. More information is available at www.lapolla.com.

About Home Properties, Inc.
Home Properties, Inc. is a publicly traded apartment real estate investment trust that owns, operates, develops, acquires and rehabilitates apartment communities primarily in suburbs of major metropolitan areas in selected Northeast and Mid-Atlantic markets. An S&P 400 Company, Home Properties owns and operates 119 communities containing 41,568 apartment units. For more information, visit Home Properties’ website at www.homeproperties.com.

Forward-Looking Statements
Statements made in this press release that are not historical facts constitute “forward-looking statements” pursuant to Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and Private Securities Litigation Reform Act of 1995. Any such forward-looking statements should be considered in context with various disclosures made by Company about its business. All information herein is as of date hereof. Company undertakes no duty to update any forward-looking statement.

Contact:
Investor Contacts:
KCSA Strategic Communications
Todd Fromer / Phil Carlson
212-896-1215 / 212-896-1233
[email protected] / [email protected]

or

Public Relations Contacts:
KCSA Strategic Communications
Samantha Wolf / Jon Goldberg
212-896-1220 / 212-896-1282
[email protected] / [email protected]

or

Corporate Contacts:
Lapolla Industries, Inc.
Douglas J. Kramer / Mike Kontranowski
281-219-4100
[email protected]

Lapolla Industries’ AirTight® Division Launches Energy Savings Program For Multi-Family Residential Properties

Leading Spray Foam Insulation Company’s New Program Allows Property Owners and Landlords to Save up to 50% on Energy Bills

HOUSTON–April 28, 2014–Lapolla Industires, Inc. (“Lapolla”) (OTCQB:LPAD), a Houston-based global supplier and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment designed to reduce energy consumption in the residential, industrial and commercial markets for both new construction and retrofit applications, today announced the launch of its AirTight® division’s Energy Savings Program for multi-family residential properties.

Lapolla’s AirTight division primarily focuses on marketing, promoting, and selling energy saving products and energy reduction services. AirTight has created a proprietary, end-to-end energy savings program that is specifically designed to address multi-family residential properties throughout the United States. This retrofit energy conservation program, conceived and put into place by the Company’s Chairman, Richard J. Kurtz, can save landlords approximately 50 percent in annual energy costs while dramatically reducing the properties carbon footprint, increasing the tenants comfort, as well as increasing the overall value of the property.

To date, there are approximately 22 million apartments throughout the United States of which approximately 8 million apartments have the property owner paying the entire heating expense for a calendar 12 month period. The program’s main focus will be these 8 million apartments.

The AirTight Multi-Family program consists of two fundamental components. First, each property’s building envelope — the separation between the interior and the exterior environments of a building — is encapsulated and insulated with Lapolla’s cutting-edge technology polyurethane spray foam. Second, the AirTight team overseas the installation of a turn-key technology package on site at each property. This package consists of wireless thermostats and apartment controls in each unit, high efficiency hot water heaters, modern high-tech boilers, and high efficiency lighting throughout the building among other energy saving technologies.

“Individually, each element of this program is proven to contribute to energy savings and reducing a building’s environmental footprint,” stated Richard J. Kurtz, Chairman of Lapolla Industries. “But consolidating each component into an end-to-end retro-fit program brings incredible value to the building owners and environment, and we believe this solution will address an enormous untapped demand in the market.”

“As the CEO of the Kamson Corporation, I manage and maintain more than 85 multi-family residential buildings in the North Eastern United States. I can say confidently, along with insurance and real estate taxes, energy utilities are one of the three largest expenses landlords and property managers are repeatedly subjected to today. As such, my team and I have tested this program on my properties, and have experienced consistent reductions in energy costs of approximately 50 percent on an annual basis. We are confident that this program will be successful and anticipate interest from major U.S. property managers and real estate developers going forward,” concluded Mr. Kurtz.

Lapolla’s foam products include spray foam insulation for residential and commercial perimeter walls, crawl spaces and attic space applications. The Company also supplies spray foam and elastomeric coatings for low slope residential and commercial roofing. Lapolla supplies polyurethane as an adhesive for board stock insulation to roofing substrates for commercial and industrial applications as well as sundry items.

Home builders and renovators around the world recognize Lapolla’s brand as having one of the most varied and comprehensive product suites of energy-saving spray foam solutions to offer customers, both commercial and residential.

About Lapolla Industries, Inc.

Lapolla Industries, Inc. is a global supplier, and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment, designed to reduce energy consumption in the residential, industrial and commercial markets, for both new construction and retrofit applications. More information is available at www.lapolla.com.

Forward Looking Statements

Statements made in this press release that are not historical facts constitute “forward-looking statements” pursuant to Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and Private Securities Litigation Reform Act of 1995. Any such forward-looking statements should be considered in context with various disclosures made by Company about its business. All information herein is as of date hereof. Company undertakes no duty to update any forward-looking statement.

CONTACT: Investor:
KCSA Strategic Communications
Todd Fromer / Phil Carlson
212-896-1215 / 212-896-1233
[email protected] / [email protected]

or

Public Relations:
KCSA Strategic Communications
Samantha Wolf / Jon Goldberg
212-896-1220 / 212-896-1282
[email protected] / [email protected]

or

Corporate:
Lapolla Industries, Inc.
Douglas J. Kramer / Mike Kontranowski
281-219-4100
[email protected]

Lapolla Industries Celebrates Earth Day with “Live Green Every Day” Campaign Promoting Awareness of Environmentally Friendly Home Construction

A&E Network’s “Flipping Boston” to Feature Lapolla’s Energy Efficient Foam As Critical Part of Home Renovation on April 19th

HOUSTON–Lapolla Industries, Inc. (“Lapolla”) (OTCQB: LPAD), a Houston-based global supplier and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment is celebrating Earth Day, on April 22, by encouraging contractors and home owners to recognize the benefits of spray foam insulation and launching its “Live Green Everyday” campaign.

The “Live Green Everyday” campaign will focus on raising consumer and contractor awareness about environmentally friendly home renovation options and their benefits. The campaign will be rolled out on Lapolla’s website, <www.lapolla.com, throughout Q2.

“With the warmer weather comes the start of home construction and renovation season. Combined with the destructive nature of this past winter’s storms, this is an ideal opportunity for contractors and home owners to recognize the long term value of using spray foam insulation on roofs and walls, among other environmentally friendly, energy efficient upgrades they can make,” said Doug Kramer, President and Chief Executive Officer of Lapolla Industries.

Lapolla’s environmentally friendly products are top of mind this spring home renovation season, as they are designed to reduce energy consumption in the residential, industrial and commercial markets for both new construction and retrofit applications.

Kramer continued, “Spray foam is applied as a liquid, which means it is able to fill small space in one’s attics, crawl spaces or walls left in even the best constructed homes and buildings. Once sealed, Lapolla’s insulation not only waterproofs the home, but prevents heat or air conditioning from escaping, reducing office and home heating and cooling bills by up to 40 percent for decades. As temperatures start to heat up, we understand that the cost of cooling one’s house is on most homeowners’ minds, so we’re here to help assuage concerns.”

People around the country recognize the importance of having an energy efficient home, including the stars of A&E’s “Flipping Boston,” home renovators Peter Souhleris and Dave Seymour. This pair will be using Lapolla products on the “Dave vs. Goliath” episode airing right before Earth Day, on April 19.

Dave Seymour, Co-Host of Flipping Boston, said “This is the second time we’ve featured Lapolla’s products on the show, and just in time for Earth Day. These spray foam products are of the highest quality and will help ensure the entire project is optimized for energy savings and comfort.”

Lapolla’s foam products include spray foam insulation for residential and commercial perimeter walls, crawl spaces and attic space applications. The Company also supplies spray foam and elastomeric coatings for low slope residential and commercial roofing. Lapolla supplies polyurethane as an adhesive for board stock insulation to roofing substrates for commercial and industrial applications as well as sundry items.

Home builders and renovators around the world recognize Lapolla as having one of the most varied and comprehensive product suites of energy-saving spray foam solutions to offer customers, both commercial and residential.

About Lapolla Industries, Inc.

Lapolla Industries, Inc. is a global supplier, and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment, designed to reduce energy consumption in the residential, industrial and commercial markets, for both new construction and retrofit applications. More information is available at www.lapolla.com.

Forward Looking Statements

Statements made in this press release that are not historical facts constitute “forward-looking statements” pursuant to Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and Private Securities Litigation Reform Act of 1995. Any such forward-looking statements should be considered in context with various disclosures made by Company about its business. All information herein is as of date hereof. Company undertakes no duty to update any forward-looking statement.

Contacts

Investor:
KCSA Strategic Communications
Todd Fromer / Phil Carlson
Phone: 212-896-1215 / 212-896-1233
Email: [email protected] / [email protected]

or

Media:
KCSA Strategic Communications
Samantha Wolf / Jon Goldberg
Phone: 212-896-1220 /212-896-1282
Email: [email protected] / [email protected]