SOURCE: National Storm Management, Inc.

August 30, 2007 08:00 ET

National Storm Makes Correction to Share Count Stated in Press Release Dated August 22, 2007

CHICAGO, IL--(Marketwire - August 30, 2007) - National Storm Management, Inc. (PINKSHEETS: NSMG) reported that it is making a correction to the share count stated in its second quarter results reported on August 22, 2007. For the period ended June 30, 2007, National Storm Management reported 78,592, 204 shares as its share count. The correct share count for issued and outstanding shares as of June 30, 2007 is 98,725,658. The additional issued shares not previously reflected in the share count reflect shares that have been issued in the company's name, but are being held by a lender to the company as collateral for the company's debt to the lender.

About National Storm Management, Inc.

National Storm Management (PINKSHEETS: NSMG) is a national construction company headquartered in Glen Ellyn, Illinois providing storm restoration services in seven states. Its operating affiliates include: ABC Exteriors (Illinois, Indiana and Kentucky); Pinnacle Roofing (Florida and Louisiana); WRS, Inc. (Minnesota); and First Class Roofing and Siding (Ohio). The company and its affiliates are recognized by all major insurance companies such as State Farm, Allstate, Farmers and others for storm related claims. The company is a member of the National Roofing Contractors Association (NRCA) and the Better Business Bureau. More information is available at www.nationalstorm.com.

Forward-Looking Statements

Certain statements included in this press release may constitute forward-looking statements. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, financial performance, plans to update a registration statement with the SEC, and other expectations, intentions and plans contained in this press release that are not historical fact and involve risks and uncertainties. Our expectations regarding future revenues depend upon our ability to develop and supply products and services that meet defined specifications. When used in this press release, the words "plan," "expect," "believe," and similar expressions generally identify forward-looking statements. These statements reflect our current expectations, but actual results could differ materially as a result of many factors, including, but not limited to, severe weather conditions and the physical damage caused by hail storms and hurricanes, fluctuations in interest rates and the resulting impact on financing costs, general economic developments in the states where we do business, availability of labor, materials and supplies, our ability to execute our future growth plans and our ability to timely and accurately prepare quarterly and annual financial statements. Forward-looking statements are made as of this press release and we do not undertake any obligation to provide updates to such statements except where required to so by law.


                      National Storm Management, Inc.
                       CONSOLIDATED  BALANCE  SHEET
                              June 30, 2007

                                                   Unaudited    Unaudited
                                                  -----------  -----------
                                                      2007         2006
                                                    June 30,     June 30,
                                                  -----------  -----------
 ASSETS
 Current assets :
        Cash                                      $   230,628  $    21,375
        Accounts receivable (less respective
         allowances)                                  158,863    1,264,593
        Inventories                                    34,446      175,509
        Management & Salesman Advances                 43,996       37,299
        Cost in excess of billings                    293,527      320,421
        Prepaid Expenses                                  374      145,332
        Other current assets                           76,924       86,009
                                                  -----------  -----------
          Total current assets                        838,758    2,050,538

 Property, plant and equipment                        508,512      486,705
        Less: Accumulated depreciation and
         amortization                                (301,774)     209,678
                                                  -----------  -----------
        Property, plant and equipment - net           206,738      277,027

 Goodwill                                                   -        5,000
 Deferred tax asset - net of valuation allowance    1,082,011      848,727
 Other                                                 27,741       79,257
                                                  -----------  -----------
          Total assets                            $ 2,155,248  $ 3,260,549
                                                  ===========  ===========


 LIABILITIES AND STOCKHOLDER EQUITY
 Current liabilities :
        Current maturities of long-term debt      $ 2,505,087  $ 1,081,363
        Accounts payable - trade                    1,182,062    1,507,769
        Other current liabilities                   1,200,996       34,160
        Unearned income                               177,413            -
        Billings in excess of costs                    37,961    1,133,669
                                                  -----------  -----------
          Total current liabilities                 5,103,519    3,756,961

 Non-current Liabilities :
        Term loan, net of current portion              27,322       26,836
        Other long-term obligations                         -      107,500
                                                  -----------  -----------
          Total long term debt                         27,322      134,336

                                                  -----------  -----------
          Total liabilities                         5,130,841    3,891,297
                                                  -----------  -----------

 Stockholders' Equity :

 Common Stock 98,725,658 and 65,624,876 issued
  and outstanding                                 $    78,592  $    65,625
 Additional paid in capital                         4,688,561    2,544,637
 Accumulated Deficit                               (7,742,745)  (3,241,010)
                                                  -----------  -----------
        Total Stockholders' Equity                 (2,975,592)    (630,748)
                                                  -----------  -----------
        Total Liabilities and Stockholders'
         Equity                                   $ 2,155,248  $ 3,260,549
                                                  ===========  ===========




* These financial statements and notes thereto present fairly, in all
  material respects, the financial position of the company and the results
  of its operations and cash flows for the periods presented, in conformity
  with accounting principles generally accepted in the United States,
  consistently applied and hereby certified by Terry Kiefer, President for
  National Storm Management, Inc.







                      National Storm Management, Inc.
                   CONSOLIDATED STATEMENT OF OPERATIONS
                              June 30, 2007
                             ** UNAUDITED **



                    --------------------------  --------------------------
                        Three Months Ended           Six Months Ended
                             June 30,                    June 30,
                    --------------------------  --------------------------
                        2007          2006          2007          2006
                    ------------  ------------  ------------  ------------
 REVENUES:
 Net trade sales    $  2,445,833  $  2,200,052  $  3,829,388  $  4,494,562
                    ------------  ------------  ------------  ------------

 OPERATING COST AND
  EXPENSES:
 Cost of product
  sold                 1,334,866       974,500     2,172,289     2,501,434
 Selling,
  administrative,
  and general          1,597,466     1,650,791     2,898,537     3,243,844
 Depreciation and
  amortization            19,477        40,432        41,792        52,669
                    ------------  ------------  ------------  ------------
                       2,951,809     2,665,723     5,112,618     5,797,947
                    ------------  ------------  ------------  ------------

 INCOME (LOSS) FROM
  OPERATIONS            (505,976)     (465,671)   (1,283,230)   (1,303,385)

 Interest expense       (637,963)      (21,950)     (900,209)      (51,028)
 Other income
  (loss)                   5,987          (826)        6,437           384
                    ------------  ------------  ------------  ------------

 Income (loss)
  before income
  taxes and
  extraordinary
  gain                (1,137,952)     (488,447)   (2,177,002)   (1,354,029)
 Provision
  (Benefit) for
  income taxes                 0        (6,599)                   (259,357)
                    ------------  ------------  ------------  ------------

 NET INCOME (LOSS)  $ (1,137,952) $   (481,848) $ (2,177,002) $ (1,094,672)
                    ============  ============  ============  ============

 Basic Earnings per
  Share:
 Weighted -average
  shares            $      (0.01) $      (0.01) $      (0.02) $      (0.02)
 Net earnings
  (loss)            $      (0.01) $      (0.01) $      (0.02) $      (0.02)
                    ============  ============  ============  ============

* These financial statements and notes thereto present fairly, in all
  material respects, the financial position of the company and the results
  of its operations and cash flows for the periods presented, in conformity
  with accounting principles generally accepted in the United States,
  consistently applied and hereby certified by Terry Kiefer, President for
  National Storm Management, Inc.




                      National Storm Management, Inc.
                   CONSOLIDATED STATEMENT OF CASH FLOWS
                              June 30, 2007
                              **UNAUDITED**

                                                --------------------------
                                                     Six Months Ended
                                                         June 30,
                                                --------------------------
                                                    2007          2006
                                                ------------  ------------
 CASH FLOWS FROM OPERATING ACTIVITIES :
 Net income (loss)                              $ (2,177,002) $ (1,094,672)

 Adjustments to reconcile net income (loss) to
  net cash provided by (used for) operating
  activities :
        Depreciation, and amortization                41,792        52,669
        Discounted interest on Fife loan             772,705             -
        Forfeiture of security deposits                  988
        Deferred tax benefit                                      (261,000)
        Stock and stock options issued for
         professional fees                                           9,375
  Changes in components of working capital :
        (Increase) decrease in accounts
         receivable - net                            481,942      (599,609)
        (Increase) decrease in inventories            20,344       (10,433)
        (Increase) decrease in advances               (1,870)       32,711
        Increase (decrease) in cost in
         uncompleted contracts                      (346,808)      578,377
        (Increase) decrease in prepaid expenses       22,283        17,142
        (Increase) decrease in other current
         assets                                        7,851
        Increase (decrease) in accounts payable     (204,218)     (146,921)
        Increase (decrease) in unearned income       177,413
        Increase (decrease) in billings in
         uncompleted contracts                      (243,698)
        Increase (decrease) in other current
         liabilities                                  14,456       (42,094)
        Other, net                                      (330)            -
                                                ------------  ------------
          Net cash provided by (used for)
           operating activities                 $ (1,434,152) $ (1,464,455)
                                                ------------  ------------

 CASH FLOWS FROM INVESTING ACTIVITIES :
        Capital expenditures                    $    (11,024) $    (27,143)
        Increase (decrease) in other long-term
         liabilities                                               107,500
                                                ------------  ------------
          Net cash provided by (used in)
           investing activities                 $    (11,024) $     80,357
                                                ------------  ------------

 CASH FLOWS FROM FINANCING ACTIVITIES :
        Issuance of common stock                $  1,827,825  $  1,409,290
        Repayment of term loan under
         foreclosure                              (1,655,259)      (44,967)
        Repayment of supplier note payable           (41,727)
        Repayment of installment note payable          1,655
        Proceeds from Fife loan                    1,500,000
        Increase in term loan                            325             -
                                                ------------  ------------
          Net cash provided by (used in)
           financing activities                 $  1,632,819  $  1,364,323
                                                ------------  ------------

 NET INCREASE (DECREASE) IN CASH
 AND CASH EQUIVALENTS                           $    187,643  $    (19,775)
 Cash and cash equivalents, beginning of period       42,985        41,150
                                                ------------  ------------
 Cash and cash equivalents, end of period       $    230,628  $     21,375
                                                ============  ============

 Cash interest paid for the periods presented : $    112,709  $     51,028
                                                ============  ============

* These financial statements and notes thereto present fairly, in all
  material respects, the financial position of the company and the results
  of its operations and cash flows for the periods presented, in
  conformity with accounting principles generally accepted in the United
  States, consistently applied and hereby  certified by Terry Kiefer,
  President for National Storm Management, Inc.






                      National Storm Management, Inc.
              CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                              June 30, 2007
                              **UNAUDITED**

                          Common
                           Stock    Additional
                            Par      Paid in      Retained    Stockholders'
                 Shares    Value     Capital      Earnings       Equity
               ========== ======== ===========  ============  ============
 Balance,
  January 1,
  2004         25,751,670 $ 25,752              $   (314,052) $   (288,300)
 Net income                                           65,952        65,952
 Dividends
  paid -
  owners
  discretionary
  draw                                              (247,915)     (247,915)
 Common stock
  issued in
  connections
  with new
  entities      8,248,330    8,248                    (8,248)            -
               ========== ======== ===========  ============  ============
 Balance,
  December 31,
  2004         34,000,000 $ 34,000              $   (504,263) $   (470,263)
 Issuance of
  stock
  options for
  professional
  fees          6,800,000    6,800     746,200                     753,000
 Acquisition
  of assets of
  N.S.M. Inc    6,000,000    6,000      (1,000)            -         5,000
 Common stock
  issued        2,313,903    2,314     397,284             -       399,598
 Net income
  (loss)                                          (1,642,075)   (1,642,075)
               ========== ======== ===========  ============  ============
 Balance,
  December 31,
  2005         49,113,903 $ 49,114 $ 1,142,484  $ (2,146,338) $   (954,740)
 Issuance of
  stock
  options for
  professional
  fees                  -        -           -             -             -
 Common stock
  issued       16,510,973   16,511   1,402,153             -     1,418,664
 Net income
  (loss)                                          (1,094,672)   (1,094,672)
               ========== ======== ===========  ============  ============
 Balance, June
  30, 2006     65,624,876 $ 65,625 $ 2,544,637  $ (3,241,010) $   (630,748)
 Issuance of
  stock
  options for
  repayment of
  debt          3,000,000    3,000      (3,000)            -             -
 Proceeds from
  sales of
  stock on
  Fife loan                              6,961                       6,961
 Common stock
  issued        1,067,318    1,067     321,039             -       322,106
 Net income
  (loss)                                          (2,324,733)   (2,324,733)
               ========== ======== ===========  ============  ============
 Balance,
  December 31,
  2006         69,692,194 $ 69,692 $ 2,869,637  $ (5,565,743) $ (2,626,414)
 Issuance of
  stock
  options for
  repayment of
  debt         29,033,464    8,900   1,818,924             -     1,827,824
 Net income
  (loss)                                          (2,177,002)   (2,177,002)
 Balance, June
  30, 2007     98,725,658 $ 78,592 $ 4,688,561  $ (7,742,745) $ (2,975,592)
               ========== ======== ===========  ============  ============



* These financial statements and notes thereto present fairly, in all
  material respects, the financial position of the company and the results
  of its operations and cash flows for the periods presented, in conformity
  with accounting principles generally accepted in the United States,
  consistently applied and hereby certified by Terry Kiefer, President for
  National Storm Management, Inc.

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