LaPolla Reports Fourth Quarter Net Income; Profit Expected for 2006 Year

LaPolla Delivers 687% Sales Growth for 2005 Fiscal Year; Completes Turnaround 


HOUSTON, March 31  /PRNewswire-FirstCall/ -- LaPolla Industries, Inc. ("LaPolla" or the "Company") (AMEX:LPA), today announced sales of $6,955,973 for the quarter ended December 31, 2005, a 599% increase over sales of $994,785 for the same period in the prior year. Operating income for the fourth quarter was $1,057,873. This compares to operating loss of $552,102 for the fourth quarter of the prior fiscal year. Net income for the fourth quarter was $1,165,318. This compares to net loss of $275,224 reported in the same quarter of the previous fiscal year. Diluted net income per share for the quarter was $0.022. This compares to diluted net loss per share of $0.01 in the fourth quarter of the previous fiscal year.

The Company also announced sales of $20,179,263 for the fiscal year ended December 31, 2005, a 687% increase over the $2,564,163 reported last year. Net loss for fiscal year 2005 was $1,524,825 and diluted net loss per share was $0.030. For the previous fiscal year, net loss and diluted net loss per share were $5,768,508 and $0.199.

"We had a great quarter with 599% sales growth as all of our businesses met our expectations resulting in higher operating margins overall," said Michael T. Adams, CEO of LaPolla. "Fiscal 2005 was a complete turnaround year -- sales grew 687%. We are delivering on our long awaited promise to provide value to our shareholders and are confident that we will ultimately be profitable for 2006."

Douglas J. Kramer, President and COO of LaPolla said, "LaPolla achieved many of our goals in 2005, primarily, to build the needed infrastructure to support not only the initial growth, but also anticipated growth moving forward. This foundation, with minimal adjustments, will continue to support substantial growth in the future. Additionally, branding, marketing and sales efforts have been very well received and will remain aggressive."

Outlook for 2006

Management offers the following guidance for the quarter ending March 31, 2006:

  --  Sales are expected to be in the range of $5.8 Million and $6.0
      Million.
  --  Operating income is expected to be in the range of $0.2 Million and
      $0.4 Million.



Management offers the following guidance for the full fiscal year ending December 31, 2006:

  --  Sales are expected to be in the range of $35 Million and $38 Million.
  --  Operating income is expected to be in the range of $4.1 Million and
      $4.4 Million.

  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.

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 March 31, 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:
  Andrew J. Kaplan
  Barry Kaplan Associates
  [phone] (t)
  [phone] (f)
  

  Company Contacts:
  Michael T. Adams, CEO
  Douglas J. Kramer, President and COO
  John A. Campbell, CFO
  [phone] (t)
  Website: http://www.lapollaindustries.com/

DATASOURCE: LaPolla Industries, Inc.



CONTACT:  Andrew J. Kaplan, of Barry Kaplan Associates, [phone],

fax: [phone], , for LaPolla Industries, Inc.; Michael

T. Adams, CEO, or Douglas J. Kramer, President and COO, or John A. Campbell,

CFO, all of LaPolla Industries, Inc., [phone]



Web site:  http://www.lapollaindustries.com/ 

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