SAN DIEGO, CA–(Marketwire – August 16, 2010) –  GreenHouse Holdings, Inc. (OTCBB: GRHU) (“GreenHouse”), a San Diego, California-based integrated energy solutions provider and developer of eco-friendly infrastructure, announced second quarter 2010 financial results and is providing a shareholder update.

“Management is pleased with the strategic direction in which the Company is headed and with the success of our acquisition strategy and platform growth,” stated Chris Ursitti, CEO of GreenHouse Holdings. “During 2010 we have taken the necessary steps to ensure we are well positioned to establish ourselves as a market leader within the rapidly expanding international green energy solutions and eco-friendly infrastructure industry. We continue to focus on expanding within the private and commercial sectors as a total solutions provider, and we are seeing increased interest from the government sector both domestically and internationally for our clean, cost saving energy solutions. As we expand our market presence we expect to rapidly increase our top line growth, allowing us to better achieve our ultimate goal of increased shareholder value.”

2010 Operational Highlights

GreenHouse Holdings’ strategic growth plan remains on target while it continues its progress as an international integrated energy solutions provider and developer of eco-friendly infrastructure, addressing the multi-billion dollar and growing “green” solutions industry:

• Signed definitive agreement for acquisition of Life Protection, Inc., a leading provider of innovative training, support, design and construction of facilities and services to meet the needs of the U.S. Government, Military, and law enforcement agencies.
  • Acquisition will be accretive to earnings in 2010
  • LPI has unaudited revenue run rate of $6 Million for 2010
  • LPI is the sole provider to the U.S. Military of Dyneema(R) for use in construction projects. Dyneema(R) is a synthetic fiber-based polyethylene, which is 15 times stronger than steel and is incredibly versatile with virtually limitless applications for construction purposes.
• Expanded product offerings, becoming a leading supplier of Rapidly Assembled Portable Structures, which the United States Marine Corps and United States Navy EOD (Explosive Ordinance Disposal) have selected for their shelter/unit training requirements
• The Company hired Mr. Rob Davis as Vice President of Global Energy Services to focus on expansion within the Company’s energy division. Mr. Davis has over three decades of experience in energy management, business development and design and deployment of utility infrastructure systems.

Second Quarter ended June 30, 2010
Revenue for the three months ended June 30, 2010 was $1,600,971 an increase of $408,673 or 34% compared to $1,192,298 for the same period in 2009. Our gross margin, representing net revenue less cost of service, for the second quarter 2010 increased to 40% of revenue compared to 35% of revenue for the second quarter of 2009, an increase of 500 basis points. The increase in the gross margin was primarily attributable to better pricing and discounts from vendors and suppliers, and on our increased focus on sales training and customer pricing, and sales of higher margin products. 

Operating expenses for the three months ended June 30, 2010 were $1,641,167, an increase of $909,941 compared to $731,226 for the same period in 2009. Compensation increased to $779,519 from the year ago period of $271,857, the increase is primarily attributable to growth in the Company’s staff to support higher sales and expansion. Selling, General and Administrative costs increased to $861,648 from $459,369 in the year ago period, largely due to increased marketing across the board of our residential and commercial products.

The Company’s net loss of $(1,057,551) for the three months ended June 30, 2010 was an increase of $(740,637) for the same period 2009. Net Loss per share for the second quarter 2010 was $(0.05) compared to that of $(0.40) in the second quarter 2009 based on 22,674,616 million and 800,000 shares outstanding, respectively.

Six Month Results

Revenue for the six months ended June 30, 2010 was $2,703,674, an increase of $888,096 or 49% compared to $1,815,578 for the six months ended June 30, 2009. The increase in revenue for the 2010 period was primarily the result of increased sales of our energy efficiency products and services to residential customers as a result of our increased sales and marketing infrastructure. The Company’s gross profit percentage increased from 31% for the first six months of 2009 to 44% for the first six months of 2010 due to the increased focus on negotiating better pricing and discounts from suppliers, increased efficiencies in our sales team and customer pricing, and sales of higher margin products.

Operating expenses for the six months ended June 30, 2010 were $2,715,991 compared to $1,216,387 for the first six months ended June 20, 2009, an increase of $1,499,604. The Company continues to expand the sales and marketing to support the energy efficiency products and services and future growth in various business sectors relating to the Company’s sustainable solutions infrastructure.

Net Loss for the six month period ended June 30, 2010 was $(1,983,158) an increase of $1,327,250 compared to a net loss of $(655,908) in the same period 2009. Net Loss per share for the six month period ended June 30, 2010 was $(0.09) compared to that of $(0.82) for the same period of 2009 based on 22,253,469 million and 800,000 shares outstanding, respectively.

Mr. Ursitti continued, “The first half of 2010 GreenHouse has built a strong infrastructure to support our residential sustainable energy products sales force, along with preparing for future growth in our commercial division. The pending acquisition of LPI puts us in prime position to capitalize on the rapidly expanding government initiative to ‘go green’ in various areas, and we have already seen strong interest from the Department of Defense specifically. We continue to evolve as a provider of sustainable solutions and strive to be a multifaceted eco-friendly product and services provider with global reach via partnerships or further acquisitions. Our management team remains excited about the potential rapid growth in the second half of 2010 from industrial clients deploying our Automated Demand Response products. Additionally, we believe that we are uniquely positioned for future government contracts due to our pending acquisition of LPI. We look forward to providing shareholders with future updates on the successful growth of Greenhouses’ business as we continue to execute on our business plan.”

About GreenHouse Holdings, Inc.
GreenHouse is a San Diego, California based developer of sustainable and eco-friendly energy solutions and infrastructure that can be rapidly deployed establishing the standard for delivering sustainable self-sufficiency to the world. The company delivers global energy solutions, also serving as a provider of non-corn based ethanol fuel. Its three primary business segments — GreenHouse Builders, GreenHouse Energy and GreenHouse Community — address broad markets from homeowners and the building industry to corporations, governments, and Third World countries. GreenHouse offers consumers effective home improvement products that improve the environment and benefit homeowners financially through lower energy bills and reduced maintenance expenses. For more information, please visit: www.greenhouseintl.com or the GreenHouse YouTube channel at http://www.youtube.com/greenhouseintl.

The GreenHouse Holdings, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7361

Cautionary Statement Regarding Forward-Looking Statements
Certain information in this press release contains forward-looking statements, including but not limited to, information relating to GreenHouse Holdings, Inc.’s (the “Company”) future performance and financial condition, plans and objectives of the Company’s management and the Company’s assumptions regarding such future performance, financial condition, plans and objectives that involve certain significant known and unknown risks and uncertainties and other factors not under the Company’s control which may cause actual results, future performance and financial condition, and achievement of plans and objectives of the Company’s management to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include: the risk that the acquisition of LPI may not be consummated for reasons including that the conditions precedent to the completion of the acquisition may not be satisfied; the possibility that the expected synergies from the proposed merger will not be realized, or will not be realized within the anticipated time period; the risk that the Company’s and LPI’s businesses will not be integrated successfully; the possibility of disruption from the merger making it more difficult to maintain business and operational relationships; any actions taken by either of the companies, including but not limited to, restructuring or strategic initiatives (including capital investments or asset acquisitions or dispositions); the timing of receipt of, and the Company’s performance on, new orders that can cause significant fluctuations in net sales and operating results; the timing and funding of government contracts; adjustments to gross profits on long-term contracts; risks associated with international sales, rapid technological change, evolving industry standards, frequent new product announcements and enhancements, changing customer demands, and changes in prevailing economic and political conditions.

Safe Harbor Statement
This press release contains forward-looking statements that reflect the Company’s current expectation regarding future events. Actual events could differ materially and substantially from those projected herein and depend on a number of factors. Certain statements in this release, and other written or oral statements made by GreenHouse Holdings, Inc. are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company’s control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Important factors that could cause actual results to differ materially from the company’s expectations include, but are not limited to, those factors that are disclosed under the heading “Risk Factors” and elsewhere in documents filed by the company from time to time with the United States Securities and Exchange Commission and other regulatory authorities.