For Immediate Release

AirBoss Defense Group Awarded PPE Equipment Contracts Valued at Over $123 Million

July 27, 2020

In Support of the PPE Requirements of the U.S. Strategic National Stockpile and the U.S. Veterans’ Administration

AirBoss Defense Group (ADG), which is focused on the design, development, and manufacturing of American-made, proven, commercially available personal protective equipment (PPE) that protects front-line workers and defense personnel, announced today that it has been awarded more than $123 million in PPE equipment contracts to supply U.S. Government agencies.

ADG has been awarded a $121 million contract by the U.S. Department of Health and Human Services (HHS) – Office of the Assistant Secretary for Preparedness and Response (ASPR), for 50,000 American-made FlexAir™ Powered Air Purifying Respirators (PAPR), 3,000,000 High-Efficiency Filters and related accessories, including spare protective hoods, that will be part of the inventory for the Strategic National Stockpile (SNS). The FlexAir PAPR is designed to enable medical providers and first responders unencumbered protection over extended periods of time, while providing critical medical care. Deliveries under the contract to HHS are expected to be completed over the next nine months.

ADG further announced that the U.S. Department of Veterans Affairs (VA) has placed a sustainment order of $2.55 million with ADG for 60,000 high efficiency (HE) filters and 20,000 protective hoods to establish a contingency stockpile of equipment for the ongoing fight against COVID-19. This sustainment order supports the continued use by VA medical personnel of the over 10,000 American-made FlexAir PAPR systems that had been delivered to the agency earlier this year. Deliveries to the VA are expected to be completed over six weeks, beginning in mid-August.

Patrick Callahan, CEO of ADG, stated: “These new contracts underscore ADG’s ability to quickly respond to the COVID-19 crisis by focusing the entire company on delivering FlexAir PAPR systems to front-line workers across the United States. These orders to supply the PPE needs of the SNS and the VA will bolster the U.S. capabilities to respond to public health hazards and ensure that the United States has a more robust domestic capability to support the federal response to future emergencies.”

“To this end, ADG has increased staffing to support the urgent needs of the U.S. federal government and is manufacturing PAPR systems at facilities in Landover, Maryland, Auburn Hills, Michigan, Scotland Neck, North Carolina and Charleston, South Carolina,” Mr. Callahan noted.

The FlexAir PAPR system is a compact, lightweight respirator system powered by an onboard battery in a waist-mounted blower, designed and manufactured in the United States. The flexible design permits the use of two high efficiency particulate filters that are designed to provide a 99.7% protection level against particulates, aerosols and biohazards, including the COVID-19 virus.

The PAPR order for the SNS follows an earlier Federal Emergency Management Agency (FEMA) order for 100,000 PAPR systems that was placed to respond to the immediate threat posed by the COVID-19 pandemic. ADG has since successfully delivered over 90% of the initial order and remains on track to complete this original contract on time, by the end of July 2020. Additional future follow-on orders for sustainment filters, hoods and accessories are anticipated. The VA order builds upon ADG’s proven record of dependability as the PAPR system provider of choice for Federal agencies.

ADG‘s PPE products have been used by various branches of the U.S. government for over 20 years. In addition to the above HHS and VA contracts, ADG has received over $15 million in non-governmental orders for PPE during the current pandemic. ADG’s emergency response equipment and PPE are utilized by the U.S. Department of State, Office of Strategic Medical Preparedness, FEMA and CDC infectious disease treatment centers.

The Company provides protective equipment to emergency first response teams and hospitals in hundreds of U.S. cities, as well as over 30 countries worldwide. ADG successfully responded during the MERS and Ebola outbreaks, by providing critical protective equipment to government and civilian first response customers. ADG will continue to engage in the response to the COVID-19 outbreak through the rapid delivery of domestically manufactured PPE and patient isolation systems to the first-responder community.

Forward Looking Information Disclaimer

Certain statements contained or incorporated by reference herein, including those that express management’s expectations or estimates of future developments or ADG’s future performance, constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable securities laws, and can generally be identified by words such as “will”, “may”, “could” “is expected to”, “believes”, “anticipates”, “forecasts”, “plans”, “intends” or similar expressions. These statements are not historical facts but instead represent management’s expectations, estimates and projections regarding future events and performance.

Statements containing forward-looking information are necessarily based upon a number of opinions, estimates and assumptions that, while considered reasonable by management at the time the statements are made, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies. ADG cautions that such forward-looking information involves known and unknown contingencies, uncertainties and other risks that may cause ADG’s actual financial results, performance or achievements to be materially different from its estimated future results, performance or achievements expressed or implied by the forward-looking information. Numerous factors could cause actual results to differ materially from those in the forward-looking information, including without limitation: impact of general economic conditions; dependence on key customers; global defense budgets, notably in ADG’s target markets, and success of ADG in obtaining new or extended defense contracts; sufficient availability of raw materials at economical costs; weather conditions affecting raw materials, production and sales; ADG’s ability to maintain existing customers or develop new customers in light of increased competition; ADG’s ability to successfully integrate acquisitions of other businesses and/or companies or to realize on the anticipated benefits thereof, changes in accounting policies and methods, including uncertainties associated with critical accounting assumptions and estimates; changes in the value of the Canadian dollar relative to the US dollar; changes in tax laws and potential litigation; ability to obtain financing on acceptable terms; environmental damage and non-compliance with environmental laws and regulations; impact of global health situations; potential product liability and warranty claims and equipment malfunction. COVID-19 could also negatively impact ADG’s operations and financial results in future periods. There is increased uncertainty associated with future operating assumptions and expectations as compared to prior periods. As such, it is not possible to estimate the impacts COVID-19 will have on ADG’s financial position or results of operations in future periods. While the direct impacts of COVID-19 are not determinable at this time, AirBoss of America Corp., the parent company of ADG, has a credit facility as at December 31, 2020 that can provide financing up to US$60,000,000. This list is not exhaustive of the factors that may affect any of ADG’s forward-looking information.

All of the forward-looking information in this press release is expressly qualified by these cautionary statements. Investors are cautioned not to put undue reliance on forward-looking information. All subsequent written and oral forward-looking information attributable to ADG or persons acting on its behalf are expressly qualified in their entirety by this notice. Forward-looking information contained herein is made as of the date of this press release and, whether as a result of new information, future events or otherwise, ADG disclaims any intent or obligation to update publicly this forward-looking information except as required by applicable laws. Risks and uncertainties about ADG’ business are more fully discussed under the heading “Risk Factors” in AirBoss of America Corp.’s (“AirBoss”) recent Annual Information Form and are otherwise disclosed in AirBoss’ filings with securities regulatory authorities which are available on SEDAR at

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