Flame Seal's President Reports on New Facility & Flame Seal-TB Sales Progress

CURRENT NEWS ITEM:

"Hello to all of our shareholders. Following up on the last release, this is an update on two primary issues: The new facility and Flame Seal-TB Sales.

"The new facility, as mentioned in past press releases, has had a number of delays over the past few months, but the move-in date is imminent. Some of the issues that caused the delays will prove beneficial in the long run, such as the Fire Marshal revisiting safety issues to make sure Flame Seal is in compliance for the long term. This was for our benefit, because if we do not make sure we are in compliance with every aspect of the codes, including issues that will come up when we are at high volume production, we could face a work stoppage down the road. It is my belief the Fire Marshal has done a good job of being very thorough, which we count as a favor on our behalf in the long run.

"Recent meetings with all parties involved, indicate that we will take possession no later than December 1, 2011. (The previous press release noted a 11/1/11 date, which is a 'possibility'). The 'no later than' date should be just in time for the huge growth in sales we are experiencing at this time, which is the second subject of this press release...

"Since we terminated our exclusive agreement with SPI, and took charge of our own marketing, distribution and sales to the Spray Foam Insulation Market, Flame Seal-TB sales have grown at an exponential rate. This is the first growth that Flame Seal has experienced of this type in our history. In a market that requires, and therefore NEEDS a proven coating that solves the Thermal Barrier safety code requirements for Polyurethane Foam Insulation, we are now experiencing the addition of new Contractors, large and small, to our customer base almost every day. Due to the commitment we require from applicators to become certified, this virtually assures that every new Qualified Applicator is a buying customer, as well as a knowledgeable professional that will help us grow, as they expand their businesses as well. This is a perfect 'win-win' scenario.

"I am pleased to report that the new Web Site has not only been a huge success, with rave reviews from clients, but it has proven to be the centerpiece of the new Marketing campaign. At the core is the Qualified Applicator training program that provides automated training and certification on-line for Contractors and applicators. Sales are directly related to trainees that take the training, and receive their certification package from us.

"As word has spread, due to numerous advertisements and promotions we have targeted within the Foam Insulation Industry, more and more applicators are contacting us requesting training and information.

"The most dramatic results came from the recent ICAA trade show. As a result of the show, Foam Manufacturers have begun to join the growing number of Contractors in our network.

"Since August 11, 2011, the date we took control of Marketing and Distribution to the Foam Insulation market, the momentum of sales growth is remarkable, compared to sales prior to our new campaign.

"Before August 11, sales to the foam industry were virtually nil during the previous 2-3 months. The first month of our new campaign started slowly, as is expected, with sales of only $7,575 through September 11. We had 5 Contracting Companies in our program at that point.

"However, the second month, ended October 11, we sold over $65,000, and we had 24 Contracting Companies in our program, with more new applicators training and becoming certified at our new web site.

"As we expand our efforts and reach, this growth rate should continue through the rest of the year and beyond. For example, Masco (a large Contractor Group) has 52 division, yet of the 24 Contractors that were customers as of October 11, only 4 were Masco divisions. Masco is converting to Flame Seal-TB nation-wide, so as more and more of the 52 divisions will join our program in the coming weeks, statistically, they alone could triple current sales levels.

"Further, a couple of agents who control very large volume accounts are joining our program as I write this, and we expect agreements to be in place any day. This will elevate the sales growth rate even further.

"We are working diligently every day to make sure we will be able to keep up with this growth rate, as it develops in the coming weeks. As more and more contractors train and sign up, and as more and more manufacturers support our program, this growth rate will continue to increase.

"As I mentioned above, it is a good thing the new facility will be ready soon. Our capacity to manufacture Flame Seal-TB (by itself), at our current location, is only $3.5M/yr. We feel we need to be in the new facility and 100% operational (de-bugged) before the first of next year, as week-to-week sales could very well spike beyond our current capacity by then.

"Although very challenging, this is all excellent news. A long time coming, I know, and for you shareholders, it certainly seems excessively long. However, when everyone gets the chance to hear the whole story about the last few years' challenges, and it won't be long now before we can all meet, I think everyone will be surprised, and pleased as to how everything was handled, given the economy and other circumstances (such as the law suit).

"I will continue to keep you all informed on a more timely basis, because these recent developments, although creating a heavy work load, have served to lower the stress levels here, and therefore give me the ability to take care of more issues such as communications with our shareholders.

"Stay tuned, as I plan, in upcoming press releases, to discuss Expert Reports regarding the large market size for our Thermal Barrier coating, as well as the viability of that market for Flame Seal. I will also discuss profit potentials for our shareholders, as well as outline the parameters of an exit strategy based on the Spray Foam Market and beyond. Needless to say, these are issues of great import to us all." Mike Kiser

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