Flame Seal Experiences Record Sales Growth In December & January

HOUSTON, Jan. 24, 2013 /PRNewswire/ -- Flame Seal Products Inc. (OTC: FLMP) today announced the Company is seeing a dramatic rise in sales volume which began in early December.  Management's extensive effort to expand distribution networks is yielding significant results, as December sales of Flame Seal-TB, the Company's lead product, achieved record levels for the month, in spite of the fact there were less than 3 productive weeks during the month due to the Christmas Holidays.  The first three weeks of January alone have far surpassed any January on record.  (In spite of the fact that December and January are traditionally slow months for the insulation / construction industries.)

This new growth trend will continue at a record pace according to current trends & customer forecasts. 

The Company has been receiving, for the first time, detailed forecast information from a number of customers / distributors which assure a record first quarter of 2013.  These are coming from multiple distribution systems which have been established over the last few months.  

From the President:  "Dear Shareholders...  As you can see from the above information, we are in the early stages of a very dynamic change in our structure, and we are already experiencing a strong upward sales trend in response to that structure.  As I write this Flame Seal is shipping products at rate that is generating revenue above its Break Even point.  At the same time, the Company is experiencing a number of 'firsts'. 

"A backlog of orders is developing before each batch is manufactured and shipped, so we are in a state of continuous production for the first time.  (We've never had continuous orders that were capable of creating a backlog in this manner.) 

"Sales are not centered on one or two customers, but rather are to a large number of Contractors in many regions of the Country, which diversity creates stability in such a growth phase.

"We have distributors requesting (and receiving) training for managers, so they can, in turn, train a large number of applicators/contractors.  As example, Service Partners is now targeting the training of 400 applicators in the use of Flame Seal-TB for Thermal and Ignition Barriers over Spray Foam Insulation.  Activities of this type are now occurring in a number of areas, with various organizations, throughout the U.S.  We are no longer training applicators, but rather, other companies are taking charge of that work for us!

"With the projections we have from some clients, we are able now to make high volume arrangements with suppliers to assure seamless supply lines and timely deliveries.  (Such projections, as noted above, are a 'first' as well.)

"To demonstrate the dramatic level of change that is now occurring at Flame Seal, I am providing the link below so shareholders can view weekly sales figures from 10/1/12 thru 1/19/13.  This table shows clearly how slow and sporadic sales were before the new distribution activities began to take effect, compared with the steady growth since the last week of November."

http://www.flameseal.com/press-release-table/

"For this to occur during winter months is a powerful indicator, along with the aforementioned backlog and forecasts, that Flame Seal is experiencing a strong growth trend that will be sustainable through the first quarter and beyond.  The longer term looks very dynamic as well, as more and more distribution points come on board, and consequently, contractors become trained and certified in ever growing numbers.

"We are all swamped here right now, so I will have to follow up with another report in a couple weeks or so.  I will close by saying that at this point in time, I see only very good signs for Flame Seal!"  Michael Kiser, President of Flame Seal Products, Inc.

About Flame Seal

Flame Seal Products, Inc., manufacturer of the world's number one fire prevention technology, was founded in 1992 as a research and development company focused on the investigation and application of passive Fire Prevention Technologies. FLAME SEAL PRODUCTS, INC. (FLMP), began trading its common stock on March 27, 2000. Flame Seal Products, Inc. is also the Transfer Agent of record. The company offers a wide variety of Code Driven solutions for a number of diverse applications and industries, and has developed three passive fire prevention technologies which are the basis for the company's products. For more information, go to: http://flameseal.com

Safe Harbor Statement

Certain statements in this release may be "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements are subject to numerous risks and uncertainties. Actual results may vary significantly from the results expressed or implied in such statements. Factors that could cause actual results to materially differ from forward-looking statements include, but are not limited to, the Company's ability to meet the terms and conditions required to obtain its project financing, risks and delays associated with product development, risk of market acceptance of new products, risk of technology or product obsolescence, competitive risks, reliance on development partners and the need for additional capital. Flame Seal takes no obligation to update or correct forward-looking statements, and also takes no obligation to update or correct information prepared by third parties that are not paid for by Flame Seal.

Contact:

Michael D. Kiser
Flame Seal Products (symbol: FLMP)
Offices: 713-668-4291
Website: www.flameseal.com

SOURCE Flame Seal Products, Inc.

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