Literary Playpen Inc. Releases Audited Financial Statements of American Pallet Leasing Inc

Business Wire, Oct 21, 2004

CEDAR RAPIDS, Iowa -- Literary Playpen Inc. (OTCBB:LYPP) today announced that it has filed with the Securities and Exchange Commission a Current Report on Form 8-K/A for purposes of publishing the audited financial statements of its recent acquisition, American Pallet Leasing Inc. ("APL"). APL is a vertically integrated manufacturer and logistical supplier of pallets. As previously announced on Sept. 22, 2004, Literary Playpen acquired all of the issued and outstanding common shares of APL in exchange for Literary Playpen's issuance of a controlling block of its common shares to the shareholders of APL.

As of Aug. 31, 2004, APL total assets of $4,651,134, a working capital deficit of $2,190,223 and total stockholders' equity of $2,117,123. For the period from inception (June 17, 2004) through Aug. 31, 2004, APL had nil revenue and a net loss of $672,932. For more detailed financial information concerning APL, please refer to the Current Report on form 8-K/A filed with the SEC on Oct. 21, 2004.

The audited balance sheet of APL as of Aug. 31, 2004, includes the assets of G&G/Cherokee Wood Inc., a Blacksburg, S.C.-based saw mill operation acquired by APL on Aug. 13, 2004. The audited income and cash flows statement of APL for the periods ended Aug. 31, 2004, include the operations of G&G/Cherokee from the date of acquisition, Aug. 13, 2004. For the year ended Dec. 31, 2003, APL and G&G/Cherokee had pro forma combined revenues of $5,500,884 and net income of $127,726. For the seven months ended July 31, 2004, APL and G&G/Cherokee had pro forma combined revenues of $3,121,586 and a net loss of $247,050. These figures are unaudited and therefore subject to year-end audit adjustments.

About American Pallet Leasing Inc.

APL is a vertically integrated manufacturer and logistical supplier of pallets. APL is engaged in an acquisition roll up of strategically located wood pallet manufacturers and saw (lumber) mills. APL'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 other saw mills as a means of sourcing cheap lumber for APL's wood pallet manufacturing operations. APL also holds patents on proprietary galvanized steel pallets and intends to commence the manufacture of its patented steel pallets subject to the receipt of additional capital. APL intends to enter into management and logistics contracts with manufacturers and distributors pursuant to which APL will supply and manage all of the customers' pallet needs. APL is in negotiations to procure its initial management and logistics contracts. All revenue to date has been derived from the saw mill operations.

About Literary Playpen Inc.

Literary Playpen Inc. is a publicly traded non-operating corporation that had insignificant assets as of the close and has not generated significant revenues over the past few years. Literary Playpen is considered a development stage company as defined in Statement of Financial Accounting Standards No. 7.

Forward-Looking Statements

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 and Literary Playpen intend 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) success of the reverse acquisition; (2) APL's expected revenue and earnings growth; and (3) 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.

For more information, please contact: Timothy Bumgarner, president and CEO of APL, or Byron Hudson, CFO.