SOURCE: LaPolla Industries, Inc.

February 26, 2007 09:00 ET

LaPolla and ComVest Agree to $5.5 Million Credit Facility

HOUSTON, TX -- (MARKET WIRE) -- February 26, 2007 -- LaPolla Industries, Inc. ("LaPolla" or the "Company") (AMEX: LPA) today announced that it closed a $5.5 Million credit facility with ComVest Capital, LLC. The credit facility is comprised of a revolving credit facility and a term loan to provide funds for the repayment and retirement of LaPolla's existing line of credit facility and for working capital and general corporate purposes.

Douglas J. Kramer, CEO and President of LaPolla, commented, "We are very pleased with the recognition by ComVest of LaPolla's growth, stability and future potential. This confidence is a strong indication of the current status of LaPolla, our future outlook, as well as the growing market opportunities. This funding will allow LaPolla to facilitate initiatives that ensure continued aggressive growth, similar to the pace previously established."

Larry E. Lenig, Senior Partner and Portfolio Manager of ComVest Capital, stated, "We are pleased with the opportunity to work with LaPolla and believe the financing provides the Company a larger foundation to support its operating, sales and distribution initiatives and anticipated growth. We look forward to working with management as LaPolla develops opportunities in the future."

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 www.lapollaindustries.com.

About ComVest Capital, LLC

The ComVest Group is a leading Private Equity firm focused on investing in middle-market companies. Since 1988 ComVest has invested more than $2 billion of equity capital in over 200 public and private companies worldwide. Through their extensive financial resources and broad network of industry experts, ComVest is able to offer companies total financial sponsorship, critical strategic support, and business development assistance. The ComVest Group's focus is centered on building industry leading companies and creating long term value for equity holders. ComVest currently manages three investment portfolios totaling over $850 million in assets and has offices in New York City and West Palm Beach, Florida. For more information on ComVest, visit www.comvest.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. 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 in the Company's periodic reports filed with the SEC. 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.

Contact Information

  • Company Contacts:
    Douglas J. Kramer
    CEO
    John A. Campbell
    CFO
    Michael T. Adams
    CGO
    (281) 219-4700 (t)
    (281) 219-4701 (f)