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National Storm Makes Correction to Share Count Stated in Press Release Dated
August 22, 2007
Copyright: Market Wire, Incorporated
Source: Market Wire
Wordcount: 1697

CHICAGO, IL, August 30 / MARKET WIRE/ --

National Storm Management, Inc. (PINKSHEETS: NSMG) reported that it is
making a correction to the share count stated in its second quarter results
reported on August 22, 2007. For the period ended June 30, 2007, National
Storm Management reported 78,592, 204 shares as its share count. The correct
share count for issued and outstanding shares as of June 30, 2007 is
98,725,658. The additional issued shares not previously reflected in the
share count reflect shares that have been issued in the company's name, but
are being held by a lender to the company as collateral for the company's
debt to the lender.

About National Storm Management, Inc.

National Storm Management (PINKSHEETS: NSMG) is a national construction
company headquartered in Glen Ellyn, Illinois providing storm restoration
services in seven states. Its operating affiliates include: ABC Exteriors
(Illinois, Indiana and Kentucky); Pinnacle Roofing (Florida and Louisiana);
WRS, Inc. (Minnesota); and First Class Roofing and Siding (Ohio). The
company and its affiliates are recognized by all major insurance companies
such as State Farm, Allstate, Farmers and others for storm related claims.
The company is a member of the National Roofing Contractors Association
(NRCA) and the Better Business Bureau. More information is available at
www.nationalstorm.com.

Forward-Looking Statements

Certain statements included in this press release may constitute
forward-looking statements. 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,
financial performance, plans to update a registration statement with the
SEC, 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, but actual results could differ
materially as a result of many factors, including, but not limited to,
severe weather conditions and the physical damage caused by hail storms and
hurricanes, fluctuations in interest rates and the resulting impact on
financing costs, general economic developments in the states where we do
business, availability of labor, materials and supplies, our ability to
execute our future growth plans and our ability to timely and accurately
prepare quarterly and annual financial statements. Forward-looking
statements are made as of this press release and we do not undertake any
obligation to provide updates to such statements except where required to so
by law.

National Storm Management, Inc. CONSOLIDATED BALANCE SHEET June 30, 2007
Unaudited Unaudited ----------- ----------- 2007 2006 June 30, June
30, ----------- ----------- ASSETS Current assets : Cash $ 230,628 $ 21,375
Accounts receivable (less respective allowances) 158,863 1,264,593
Inventories 34,446 175,509 Management & Salesman Advances 43,996 37,299 Cost
in excess of billings 293,527 320,421 Prepaid Expenses 374 145,332 Other
current assets 76,924 86,009 ----------- ----------- Total current assets
838,758 2,050,538 Property, plant and equipment 508,512 486,705 Less:
Accumulated depreciation and amortization (301,774)
209,678 ----------- ----------- Property, plant and equipment - net 206,738
277,027 Goodwill - 5,000 Deferred tax asset - net of valuation allowance
1,082,011 848,727 Other 27,741 79,257 ----------- ----------- Total assets $
2,155,248 $ 3,260,549 =========== =========== LIABILITIES AND STOCKHOLDER
EQUITY Current liabilities : Current maturities of long-term debt $
2,505,087 $ 1,081,363 Accounts payable - trade 1,182,062 1,507,769 Other
current liabilities 1,200,996 34,160 Unearned income 177,413 - Billings in
excess of costs 37,961 1,133,669 ----------- ----------- Total current
liabilities 5,103,519 3,756,961 Non-current Liabilities : Term loan, net of
current portion 27,322 26,836 Other long-term obligations -
107,500 ----------- ----------- Total long term debt 27,322
134,336 ----------- ----------- Total liabilities 5,130,841
3,891,297 ----------- ----------- Stockholders' Equity : Common Stock
98,725,658 and 65,624,876 issued and outstanding $ 78,592 $ 65,625
Additional paid in capital 4,688,561 2,544,637 Accumulated Deficit
(7,742,745) (3,241,010) ----------- ----------- Total Stockholders' Equity
(2,975,592) (630,748) ----------- ----------- Total Liabilities and
Stockholders' Equity $ 2,155,248 $ 3,260,549 =========== =========== * These
financial statements and notes thereto present fairly, in all material
respects, the financial position of the company and the results of its
operations and cash flows for the periods presented, in conformity with
accounting principles generally accepted in the United States, consistently
applied and hereby certified by Terry Kiefer, President for National Storm
Management, Inc. National Storm Management, Inc. CONSOLIDATED STATEMENT OF
OPERATIONS June 30, 2007 ** UNAUDITED
** -------------------------- -------------------------- Three Months Ended
Six Months Ended June 30, June
30, -------------------------- -------------------------- 2007 2006 2007
2006 ------------ ------------ ------------ ------------ REVENUES: Net trade
sales $ 2,445,833 $ 2,200,052 $ 3,829,388 $
4,494,562 ------------ ------------ ------------ ------------ OPERATING COST
AND EXPENSES: Cost of product sold 1,334,866 974,500 2,172,289 2,501,434
Selling, administrative, and general 1,597,466 1,650,791 2,898,537 3,243,844
Depreciation and amortization 19,477 40,432 41,792
52,669 ------------ ------------ ------------ ------------ 2,951,809
2,665,723 5,112,618
5,797,947 ------------ ------------ ------------ ------------ INCOME (LOSS)
FROM OPERATIONS (505,976) (465,671) (1,283,230) (1,303,385) Interest expense
(637,963) (21,950) (900,209) (51,028) Other income (loss) 5,987 (826) 6,437
384 ------------ ------------ ------------ ------------ Income (loss) before
income taxes and extraordinary gain (1,137,952) (488,447) (2,177,002)
(1,354,029) Provision (Benefit) for income taxes 0 (6,599)
(259,357) ------------ ------------ ------------ ------------ NET INCOME
(LOSS) $ (1,137,952) $ (481,848) $ (2,177,002) $ (1,094,672) ============
============ ============ ============ Basic Earnings per Share:
Weighted -average shares $ (0.01) $ (0.01) $ (0.02) $ (0.02) Net earnings
(loss) $ (0.01) $ (0.01) $ (0.02) $ (0.02) ============ ============
============ ============ * These financial statements and notes thereto
present fairly, in all material respects, the financial position of the
company and the results of its operations and cash flows for the periods
presented, in conformity with accounting principles generally accepted in
the United States, consistently applied and hereby certified by Terry
Kiefer, President for National Storm Management, Inc. National Storm
Management, Inc. CONSOLIDATED STATEMENT OF CASH FLOWS June 30, 2007
**UNAUDITED** -------------------------- Six Months Ended June
30, -------------------------- 2007 2006 ------------ ------------ CASH
FLOWS FROM OPERATING ACTIVITIES : Net income (loss) $ (2,177,002) $
(1,094,672) Adjustments to reconcile net income (loss) to net cash provided
by (used for) operating activities : Depreciation, and amortization 41,792
52,669 Discounted interest on Fife loan 772,705 - Forfeiture of security
deposits 988 Deferred tax benefit (261,000) Stock and stock options issued
for professional fees 9,375 Changes in components of working capital :
(Increase) decrease in accounts receivable - net 481,942 (599,609)
(Increase) decrease in inventories 20,344 (10,433) (Increase) decrease in
advances (1,870) 32,711 Increase (decrease) in cost in uncompleted contracts
(346,808) 578,377 (Increase) decrease in prepaid expenses 22,283 17,142
(Increase) decrease in other current assets 7,851 Increase (decrease) in
accounts payable (204,218) (146,921) Increase (decrease) in unearned income
177,413 Increase (decrease) in billings in uncompleted contracts (243,698)
Increase (decrease) in other current liabilities 14,456 (42,094) Other, net
(330) - ------------ ------------ Net cash provided by (used for) operating
activities $ (1,434,152) $ (1,464,455) ------------ ------------ CASH FLOWS
FROM INVESTING ACTIVITIES : Capital expenditures $ (11,024) $ (27,143)
Increase (decrease) in other long-term liabilities
107,500 ------------ ------------ Net cash provided by (used in) investing
activities $ (11,024) $ 80,357 ------------ ------------ CASH FLOWS FROM
FINANCING ACTIVITIES : Issuance of common stock $ 1,827,825 $ 1,409,290
Repayment of term loan under foreclosure (1,655,259) (44,967) Repayment of
supplier note payable (41,727) Repayment of installment note payable 1,655
Proceeds from Fife loan 1,500,000 Increase in term loan
325 - ------------ ------------ Net cash provided by (used in) financing
activities $ 1,632,819 $ 1,364,323 ------------ ------------ NET INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS $ 187,643 $ (19,775) Cash and cash
equivalents, beginning of period 42,985 41,150 ------------ ------------
Cash and cash equivalents, end of period $ 230,628 $ 21,375 ============
============ Cash interest paid for the periods presented : $ 112,709 $
51,028 ============ ============ * These financial statements and notes
thereto present fairly, in all material respects, the financial position of
the company and the results of its operations and cash flows for the periods
presented, in conformity with accounting principles generally accepted in
the United States, consistently applied and hereby certified by Terry
Kiefer, President for National Storm Management, Inc. National Storm
Management, Inc. CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY June 30,
2007 **UNAUDITED** Common Stock Additional Par Paid in Retained
Stockholders' Shares Value Capital Earnings Equity ========== ========
=========== ============ ============ Balance, January 1, 2004 25,751,670 $
25,752 $ (314,052) $ (288,300) Net income 65,952 65,952 Dividends paid -
owners discretionary draw (247,915) (247,915) Common stock issued in
connections with new entities 8,248,330 8,248 (8,248) - ========== ========
=========== ============ ============ Balance, December 31, 2004 34,000,000
$ 34,000 $ (504,263) $ (470,263) Issuance of stock options for professional
fees 6,800,000 6,800 746,200 753,000 Acquisition of assets of N.S.M. Inc
6,000,000 6,000 (1,000) - 5,000 Common stock issued 2,313,903 2,314
397,284 - 399,598 Net income (loss) (1,642,075) (1,642,075) ==========
======== =========== ============ ============ Balance, December 31, 2005
49,113,903 $ 49,114 $ 1,142,484 $ (2,146,338) $ (954,740) Issuance of stock
options for professional fees - - - - - Common stock issued 16,510,973
16,511 1,402,153 - 1,418,664 Net income (loss) (1,094,672) (1,094,672)
========== ======== =========== ============ ============ Balance, June 30,
2006 65,624,876 $ 65,625 $ 2,544,637 $ (3,241,010) $ (630,748) Issuance of
stock options for repayment of debt 3,000,000 3,000 (3,000) - - Proceeds
from sales of stock on Fife loan 6,961 6,961 Common stock issued 1,067,318
1,067 321,039 - 322,106 Net income (loss) (2,324,733) (2,324,733) ==========
======== =========== ============ ============ Balance, December 31, 2006
69,692,194 $ 69,692 $ 2,869,637 $ (5,565,743) $ (2,626,414) Issuance of
stock options for repayment of debt 29,033,464 8,900 1,818,924 - 1,827,824
Net income (loss) (2,177,002) (2,177,002) Balance, June 30, 2007 98,725,658
$ 78,592 $ 4,688,561 $ (7,742,745) $ (2,975,592) ========== ========
=========== ============ ============ * These financial statements and notes
thereto present fairly, in all material respects, the financial position of
the company and the results of its operations and cash flows for the periods
presented, in conformity with accounting principles generally accepted in
the United States, consistently applied and hereby certified by Terry
Kiefer, President for National Storm Management, Inc.