Flame Seal Experiences Triple Digit Sales Growth In May, Trends Continuing In June

HOUSTON, June 6, 2012 /PRNewswire/ -- Flame Seal Products, Inc. (PINKSHEETS: FLMP) releases the following:

After a moderate first quarter in the Spray Foam Insulation market, due to the winter slow down in construction, as well as affects of the economy in general, a number of milestone events occurred for Flame Seal that sparked the beginning of a very strong upward trend in sales.

First quarter sales revenues were $311,858, which was low in the opinion of management, considering Flame Seal's extensive marketing efforts during the last quarter of 2011.  Further, the anticipated beginning of the building season that typically occurs in late March to early April did not at first show up in Flame Seal's sales numbers.  In response, the Company increased the intensity of its marketing efforts further, and by Mid April sales began to climb.  In late April - early May, Flame Seal began receiving a massive increase in phone calls and emails with Purchase Orders, Bid Requests, and proposals for negotiations on very large projects, including government and military.  The Company also suddenly was receiving requests from large distributors to carry the Flame Seal-TB product for Foam Insulation. 

This sudden change caused Flame Seal to develop a back-log of Flame Seal-TB orders for the first time.  Adjustments to supply strategies had to be enacted quickly to minimize inconvenient delays for Flame Seal's new customers. 

The upswing in late April translated into significant sales increases in May.  By the end of May a dramatically higher sales volume had been established in the foam market, as Purchase Orders for the month totaled over $260,000.  The first week of June is already indicating an even greater upward trend.

This rapid sales growth is primarily attributable to 5 or 6 locations of Service Partners outlets buying for their local contractors.  Service Partners has asked Flame Seal to visit all 70 outlets nationwide to help accelerate full participation, to better serve all of their customers.  Flame Seal's staff is now training personnel for the purpose of completing this task within six months.

Another milestone event that seems to have caused this sudden growth in the Foam Insulation market for Flame Seal is the movement of Contractors away from IFTI, the competitor that engaged Flame Seal in a major lawsuit last year, which Flame Seal won.  The message of that victory has suddenly taken root throughout the Spray Foam Industry.      

From the President:  "Hello fellow Shareholders!  It seems a combination of good fortune, and reward for a long, hard-fought battle, has resulted in widespread acceptance of our product for Thermal Barrier use on Foam Insulation.  The key to recent market gains from our competitors is in the news that is circulating that IFTI has been sued by its law firm for non-payment, and in its counterclaims (a public document), they say  they won't pay because they lost every aspect of the case.  This put them in a position they cannot defend, since they claimed for many months that they had won.  Truth prevails in this case!

"This bodes especially well since we now have bona-fide data that verifies the value of this market to be over $50Million.  This is based on reports from distributors that 20% of ALL foam sold requires Fire Barrier coatings.  (Total sales of spray foam insulation is 500 million pounds / year.) 

"Just to give you all an idea of the magnitude of these new developments, we are now negotiating with two companies that each has a project with over 1Million square feet of foam that needs a Thermal Barrier coating.  In fact, in recent weeks, discussions with projects requiring over 100,000 sq. ft. of coating are not uncommon.

"As code enforcement reaches an all time high, this is all, collectively, excellent news for us, and essentially guarantees that we can grow in this market for the foreseeable future.  Especially with the competition losing ground rapidly as the truth spreads about our superior performance, and our growing reputation for dependability and professionalism.

"We are now faced with a 'good' problem... having to catch up with sales orders.  This we are accomplishing as I write this, by stocking up on raw materials that have longer lead times, and negotiating new supply agreements.  We are almost there, and we are looking forward to an extremely good year as a result (in spite of a slow start out of the gate).  I especially look forward to seeing what the numbers look like in six months after we get all 70 Service Partners locations ordering from us! 

"Look for our Business Report at OTCMarkets.com, which will have a lot more details regarding all of this activity, as well as our plans for dealing with high volume sales growth this year.  It is a challenge, to be sure, but it is exactly what all the planning and posturing has been about for all these years!"  Michael D. Kiser, President of Flame Seal Products, Inc. 

Financials and a Business Report with more details of these events are being prepared for filing at OTCMarkets.com.  These reports will be uploaded for our shareholders in the next few days.

STOCKS & INVESTOR RELATIONS:  Flame Seal has thus far been unsuccessful in finding a satisfactory firm to handle Investor Relations and PR.  It is expected that such will be resolved in the short term.

ABOUT FLAME SEAL:

FLAME SEAL PRODUCTS, INC. (FLMP) began trading March 27, 2000 on  OTCMarkets.  Flame Seal Products, Inc. is the Transfer Agent of record. 

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

SOURCE Flame Seal Products, Inc.