LaPolla Reports Fourth Quarter and Year End Results

HOUSTON, TX -- (MARKET WIRE) -- March 29, 2007 --LaPolla Industries, Inc. ("LaPolla" or the "Company") (AMEX: LPA) today announced sales of $7,715,684 for the quarter ended December 31, 2006, an 11% increase over sales of $6,955,973 for the same period in the prior year. Gross margin decreased from the fourth quarter of 2005 to comparable period in 2006 due to an increase in sales of lower margin products. Operating loss before income taxes for the fourth quarter was $1,320,209. This compares to an operating loss before income taxes of $409,077 for the fourth quarter of the prior fiscal year. Net loss for the fourth quarter was $934,914. This compares to net income of $838,539 reported in the same quarter of the previous fiscal year. Diluted net loss per share for the quarter was $0.017. This compares to diluted net income per share of $0.029 in the fourth quarter of the previous fiscal year.

The Company had sales of $30,314,736 for fiscal year ended December 31, 2006, a 50% increase over sales of $20,179,263 for the same period in the prior year. Gross margin increased from 2005 to 2006. Operating loss for the 2006 year was $3,328,291. This compares to an operating loss of $2,489,332 for the prior fiscal year. Net loss for 2006 was $3,014,319 compared to $2,357,361 for the previous fiscal year. Diluted net loss per share for 2006 was $0.057. This compares to diluted net loss per share of $0.047 for the previous fiscal year.

Douglas J. Kramer, CEO and President, stated, "Our sales grew from $20.17 Million in 2005 to $30.31 Million in 2006." Mr. Kramer continued, "We withstood some difficult non-recurring financial impacts with the bankruptcy of one of our longstanding customers during 2006 and a restatement of certain prior period amounts relating primarily to our cost of sales. Strategic steps are well underway to impact our financial position through further vertical integration and increase our margins in the near term. Additionally, we expanded our Board of Directors and implemented the SEC's Internal Control Over Financial Reporting attestation process one year earlier than required to further strengthen our infrastructure," concluded Mr. Kramer.

Results of Primary Business Segments

Foam sales increased $609,283, or 14.6%, from the fourth quarter of 2005 to the fourth quarter of 2006. Segment loss increased $314,610, or 108.7%, from the fourth quarter of 2005 to the fourth Quarter of 2006. Foam sales increased $6,503,671, or 58%, from 2005 to 2006. Segment loss increased $323,166, or 18.8%, from 2005 to 2006.

Coatings sales increased $275,604, or 14.3%, from the quarter ended December 31, 2005 to the quarter ended December 31, 2006. Segment loss was $129,814 for the quarter ended December 31, 2006 compared to a profit of $134,802 in the comparable 2005 period. Coatings sales increased $2,856,887, or 42.6%, from 2005 to 2006. Segment loss increased $331, or 0.67%, from 2005 to 2006.

Paints sales increased $142,405, or 78.6%, from the fourth quarter of 2005 to the fourth quarter of 2006. Segment profit decreased $3,311, or 32%, from the fourth quarter of 2005 to the fourth quarter of 2006. Paints sales increased $413,941, or 52.9%, from 2005 to 2006. Segment profit was $48,394 for 2006, as compared to, a segment loss of $12,138 for 2005.

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 29, 2007. 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 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)