National Storm Management to the Challenge of Hurricane Fury

GLEN ELLYN, Ill.--(BUSINESS WIRE)--Dec. 14, 2005--National Storm Management, Inc. (PINK SHEETS:NLST) today announced results for the third quarter ended September 30, 2005.

Net trade sales for the quarter rose seven percent to $3,865,000, up from $3,626,000 in the year earlier third quarter. The company reported a loss from operations of $688,000, compared to income from operations of $145,000. Net loss for the third quarter was $656,000, or a loss of one cent ($.01) a share, based on 47,240,000 shares outstanding. This compares to a profit of $122,000 in the prior year's third quarter, with nil earnings per share, based on 34,000,000 shares outstanding.

“Sales for this recent quarter are primarily from the Midwest and Florida include a small amount from Mississippi”

For the nine months, the company reported $12,710,000 in net trade sales, up 75 percent from $7,278,000 in the 2004 nine months. The company reported a loss from operations of $1,038,000 compared to income from operations of $169,000 in the 2004 nine month period. Net loss for the nine months was $1,022,000, or two cents ($.02) a share. This compares to a net profit of $43,000, with nil earnings per share, in the prior year's nine months.

"Sales for this recent quarter are primarily from the Midwest and Florida include a small amount from Mississippi," said Mark V. Noffke, chief financial officer. "In addition to a one-time investment banking charge, profitability was impacted by startup infrastructure expenses in southern states. These costs include facility setup, labor base and distribution channel development. Other costs that affected operating earnings are associated with margin reductions including regulatory requirements and fees as well as lost production days from the hurricanes. Our business model gives us the ability to have good estimates as to expected revenues, but there will always be a time lag between initial investment and profitable operations."

Terry Kiefer, president, commented: "We have recently announced initiatives in Minneapolis and Hattiesburg, Mississippi, which together are expected to generate more than $24 million in sales. Just like the snowbirds, we are looking south right now, and, in fact, we have shifted our midwest crews into Mississippi. Operating at the national level as we do gives us the flexibility to deal with seasonal weather patterns."

The company also said it has issued a correction to its other long term liabilities reflected in its 2003 & 2004 financial statements. This other long term liability was relieved through an increase in the number of shares outstanding by 6,000,000 shares. The change incorporates shares issued through a contract with a consultant which was effective June 1, 2001. This is further explained in the notes to the financial statements. This does not affect current or past years' earnings.

National Storm Management is a rapidly growing national construction company specializing in storm restoration management, primarily roofing services, that works closely with affiliates in seven midwest and southern states: Illinois, Missouri, Minnesota, Ohio, Florida (three locations), Maryland and Mississippi. National Storm and its affiliates are recognized by all major insurance companies such as State Farm, Allstate, Farmers and many others for storm related claims. The Company is a member of the National Roofing Contractors Association (NRCA) and the Better Business Bureau.

SAFE HARBOR STATEMENT

Certain statements included in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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, supply and demand conditions, 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.