SOURCE: LaPolla Industries, Inc.

June 30, 2008 16:59 ET

LaPolla's Credit Facility Expanded $5.5 Million

ComVest Capital Supports LaPolla's Growth Plans

HOUSTON, TX--(Marketwire - June 30, 2008) - LaPolla Industries, Inc. (OTCBB: LPAD) ("LaPolla"), a leading manufacturer and supplier of spray foam and coatings designed to reduce energy consumption in the commercial and residential markets, announced today that it has closed an expanded $12.5 million credit facility with ComVest Capital, LCC to provide more capital to support LaPolla's growth. The new credit facility increases the revolving credit from $5.0 million to $9.5 million and increases the convertible term loan from $2.0 million to $3.0 million. Concurrent with the expanded credit facility, Mr. Richard Kurtz, Chairman of the Board of LaPolla, contributed $2.0 million in equity to LaPolla.

"ComVest has been a steadfast financial partner to LaPolla and we appreciate their ongoing confidence in our growth potential as we lead the conversion from traditional fiberglass insulation to foam insulation for both commercial and residential construction," said Douglas J. Kramer, president and chief executive officer of LaPolla. "With this expanded credit facility, we have the financial flexibility to more aggressively execute on our growth strategy to move into larger, more concentrated markets within the U.S. and to further strengthen our global supply footprint through organic growth and acquisition of spray foam insulation distributors."

Gary E. Jaggard, Managing Director of ComVest Capital, said, "With its manufacturing capabilities, industry credentials and broad sales coverage, LaPolla has the assets and talent to be the premier spray foam insulation supplier. We look forward to continuing to work with the management team as the company gains market share and greater industry recognition."

About LaPolla Industries, Inc.

LaPolla Industries, Inc. is a leading manufacturer and supplier of spray polyurethane foam for insulation and coatings targeting commercial and residential applications in the building envelope construction industries.

About ComVest Capital, LLC

ComVest Capital, LLC is a private investment firm focused on investing in growth businesses. The firm has a diversified industry focus that includes Information Technology, Healthcare, Aerospace and Defense, Natural Resources, Consumer Packaged Goods, and Telecommunications. Since its founding in 1988, ComVest has raised and invested more than $1.4 billion of capital. ComVest currently manages three investment portfolios totaling over $850 million in assets and has offices in New York City and West Palm Beach, Florida. 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 LaPolla's opinions about trends and factors which may impact future operating results. Any such forward-looking statements should be considered in context with the various disclosures made by LaPolla about its businesses including, without limitation, the risk factors described in its periodic reports filed with the SEC. LaPolla undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in LaPolla's expectations.

For further information regarding risks, uncertainties, and other factors associated with LaPolla's business, please refer to LaPolla's SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, which are available at www.lapollaindustries.com.

Contact Information

  • Company Contacts:
    Douglas J. Kramer, CEO
    Michael T. Adams, CGO
    (281) 219-4700

    Investor Relations Contacts:
    Jody Burfening
    Lippert/Heilshorn & Associates
    (212) 838-3777
    jburfening@lhai.com

    ComVest Contact:
    Gary E. Jaggard
    Managing Director
    (561) 868-6070