Lapolla Industries Reports First Quarter 2014 Results

Lapolla Industries, Inc. (“Lapolla”) (OTCQB:LPAD), a Houston-based global supplier and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment designed to reduce energy consumption in the residential, industrial and commercial markets for both new construction and retrofit applications, today announced financial results for the three month period ended March 31, 2014.

First Quarter 2014 Highlights:

• Total Operating Expenses decreased 6.9 percent to $3.57 million
• Launched the AirTight^® Multi-Family Program, a unique end-to-end energy savings solution
• Signed first AirTight Multi-Family Energy Savings Program agreement with multi-billion dollar REIT Home Properties (HME) to install its all-inclusive energy savings package throughout the entire multi-family unit complex at a cost exceeding $1 million

For the first quarter of 2014, Lapolla generated revenue of $16.1 million, as compared to $16.9 million during the same period in 2013. During the first quarter of 2014, Lapolla’s gross profit was $3.1 million, as compared to $3.63 million for the first quarter of 2013. Adjusted EBITDA for the first quarter was $(93,833), as compared to $447,577 in the same period of 2013.

For the first quarter of 2014, Lapolla reported foam segment sales were $14.02 million as compared to $14.9 million in the same period of 2013. Foam segment profit was $518 during first quarter 2014, as compared to $541,691 for the same quarter in 2013. First quarter 2014 coatings segment sales were $2.08 million versus $2.09 million for the same period in 2013. Coatings segment profit was $169,838, as compared to $278,134 for the first quarter in 2013.

“During the first quarter of 2014, our revenues were in line with our expectations given the inherent seasonality of our business and weather that was colder than expected,” stated Doug Kramer, CEO and President of Lapolla Industries. “As we remained diligent in improving our operational efficiencies, we were able to decrease our total operating costs while gaining traction for our business both domestically and internationally.”

“We recently announced our AirTight division’s Energy Savings Program for multi-family residential properties which can save landlords approximately 50 percent on annual energy costs. This program is significant given the market opportunity it presents to Lapolla, the cost savings it presents to landlords and the improved quality of home life for tenants. These benefits led us to sign our first program agreement with Home Properties, a REIT that is well known throughout the multi-family space with more than 41,000 units in the Mid-Atlantic and North Eastern U.S. There is substantial opportunity for this market, as we believe it to be north of $19 billion and we believe we are well positioned to capitalize on expanding our national and global footprint in this space.”

Kramer concluded, “Going forward, we remain confident that we will see increased revenues throughout 2014 as global awareness of our energy saving products continues to progress.”

Notes:

Lapolla Industries utilizes Adjusted EBITDA to assist it in reviewing financial results and for management incentives. Adjusted EBITDA is defined as EBITDA increased by total share based compensation included in net income or loss. Lapolla’s management utilizes Adjusted EBITDA in an effort to provide information that reflects the Company’s economic performance. Lapolla’s management team reviews their monthly financial results on an Adjusted EBITDA basis. Adjusted EBITDA has no impact on reported volumes or sales.

Adjusted EBITDA is used as a supplemental financial measure by management to describe Lapolla’s operations and economic performance to financial institutions:

• The economic results of Lapolla Industries’ operations

• Repeatable operating performance that is not distorted by non-recurring items, certain other non-cash items, or market volatility.

Adjusted EBITDA is not prepared in accordance with GAAP. Adjusted EBITDA should not be considered as an alternative to net income or loss, income or loss from operations, cash flows from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP.

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, available at www.lapolla.com.

About Lapolla Industries, Inc.

Lapolla Industries, Inc. is a global supplier, and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment, designed to reduce energy consumption in the residential, industrial and commercial markets, for both new construction and retrofit applications. More information is available atwww.lapolla.com.

Forward Looking Statements

Statements made in this press release that are not historical facts constitute "forward-looking statements" pursuant to Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and Private Securities Litigation Reform Act of 1995. Any such forward-looking statements should be considered in context with various disclosures made by Company about its business. All information herein is as of date hereof. Company undertakes no duty to update any forward-looking statement.

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