American Pallet Leasing Cites 30% Production Increase in Previous Quarter.

CEDAR RAPIDS, Iowa -- American Pallet Leasing, Inc. (OTCBB: APLS), a vertically integrated manufacturer and logistical supplier of pallets, announced today that since October 2004, the Company has increased lumber production by 30 percent at its Blackburg, South Carolina saw mill.

According to APL's Chief Executive Officer, Timothy R. Bumgarner, the dramatic increase is the result of efficiencies that APL has implemented since it acquired the facility in August 2004. "We have invested approximately $150,000 in improvements, which reduced waste and increased the throughput of logs at the mill," Mr. Bumgarner said. "So far, our efforts have resulted in a $50,000 per month increase in revenue. While this is a solid indicator that our business strategy is working, it is just the beginning. We are currently making additional changes that will enhance revenues to an even greater extent. For example, remnant wood that was previously being ground into chip materials is now being used for pallet lumber and will generate twice the revenue per board foot. Most of that increase will fall to our bottom line, and as the Company accelerates its pallet production in the coming months, these changes will have an increasingly positive effect."

About American Pallet Leasing Inc.

APL is a vertically integrated manufacturer and logistical supplier of pallets. The Company is engaged in an acquisition roll-up of strategically located wood pallet manufacturers and saw (lumber) mills. Management's goal is to create a "Closed Loop Distribution System" by transforming the $1.6 billion-per-year pallet business from a commodity industry into a logistics management enterprise that will supply and manage the pallet requirements of manufacturers and distributors. APL currently owns one saw mill and intends to acquire others as an efficient means of sourcing lumber for its wood pallet manufacturing operations. APL also holds patents on proprietary galvanized steel pallets and intends to begin manufacturing them upon receipt of additional capital. So far, all of APL's revenue has come from its sawmill operations, but the Company currently is negotiating management and logistics contracts to supply and manage the customers' complete pallet needs.

Disclosure Statement

The statements contained in this press release that are not historical are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements, without limitation, regarding our expectations, beliefs, intentions or strategies regarding the future. APL's intends that such forward-looking statements be subject to the safe-harbor provided by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, among other things: (1) APL's' expected revenue and earnings growth; and (2) estimates regarding the size of target markets. These statements are qualified by important factors that could cause APL's actual results to differ materially from those reflected by the forward-looking statements. Such factors include but are not limited to: (1) APL's ability to obtain development financing as and when needed, (2) APL's ability to generate and sustain profitable operations; (3) the market's acceptance of APL's products and services; (4) significant competition from other pallet manufacturers and suppliers, and (5) APL's ability to protect its intellectual property. These statements, and other forward-looking statements, are not guarantees of future performance and involve risks and uncertainties as more fully described in the company's periodic filings with the Securities and Exchange Commission.