AirBoss Provides Corporate Update / Announces Respirator Approval

NEWMARKET, Ontario, Oct. 18, 2021 (GLOBE NEWSWIRE) — AirBoss of America Corp. (TSX: BOS) (OTCQX: ABSSF) (the “Company” or “AirBoss”) announced today that its subsidiary AirBoss Defense Group (“ADG”) has successfully shipped or commenced shipment of all remaining nitrile patient examination gloves for the Strategic National Stockpile (SNS) for the U.S. Department for Health and Human Services (“DHHS”) – Office of the Assistant Secretary for Preparedness and Response (ASPR) pursuant to the previously announced order expected to be worth up to US$288 million. The Company anticipates that delivery of this order will be primarily completed in the fourth quarter of 2021, due to production stoppages in Malaysia related to government lockdowns which created a 4-6 week production delay, in addition to global logistics difficulties, notably record backlogs at U.S. cargo ports.

Due to the backlog, approximately US$116M of sales originally expected to be accounted for as revenue in the third quarter of 2021 are now anticipated to be recorded in the fourth quarter of 2021. The Company does not anticipate any impact to its previously announced outlook for the full year 2021.

Based on preliminary unaudited results, the Company currently anticipates reporting Q3 2021 revenues of approximately US$112 million and Adjusted EBITDAⁱ of approximately $13 million. These preliminary results reflect year-over-year sales growth (not factoring in ADG’s sales of respirators to DHHS in Q3 2020), offset by a decline at AirBoss Engineered Products driven by the impact of continuing supply chain challenges related to raw material supply, chip shortages and elevated freight costs. In addition, the Company had recognized government subsidies that offset costs at AirBoss Rubber Solutions and ADG in Q3 2020 which the Company did not recognize in Q3 2021. This information is based on unaudited expected results and certain accounting assumptions. The views on anticipated results are based on management’s initial review of its operations and performance for the quarter ended Sep. 30, 2021, do not include all results expected to be reported and are subject to the completion of the Company’s customary closing and review procedures.

NIOSH Approval for new AirBoss 100™ Half Mask Respirator

AirBoss also announced that it has received approval from the National Institute for Occupational Safety and Health (NIOSH) for its new AirBoss 100™ Half Mask Respirator.

Designed and developed by AirBoss in consultation with first responders and health care professionals, this new reusable respirator expands the range of the Company’s certified respiratory protection products for medical, defense and law enforcement personnel operating in high-risk areas. The AirBoss 100™ Half Mask is designed to provide filtered particulate protection from chem-bio agents and contaminants at 99.97% and builds on the success within the healthcare sector of the Company’s existing NIOSH-approved FlexAir powered air purifying respirator (PAPR) systems. The AirBoss 100™ is designed to provide the same level of respiratory protection as the Flex-Air PAPR but at a lower price point as a result of a more portable design not requiring a battery operated blower. NIOSH is part of the U.S. Centers for Disease Control and Prevention, in the U.S. Department of Health and Human Services.

For an overview of ADG’s existing product line, please visit https://vimeo.com/624970633/cc197a7ccb

Q3 2021 Conference Call

The Company will release its third quarter results after market close on Tuesday November 9, 2021. The release will be followed by a conference call to discuss its financial results on Wednesday November 10, 2021 at 9:00 am ET.

DATE: Wednesday, November 10, 2021 TIME: 9:00 am ET DIAL-IN NUMBER: 1-800-319-4610 or 416-915-3239 CONFERENCE ID: 55506 WEBCAST LINK: https://www.gowebcasting.com/11513

Please connect approximately 10 minutes prior to the beginning of the call to ensure participation. Investor Contact: Chris Bitsakakis, President or Gren Schoch, CEO at 905-751-1188.

Media Contact: [email protected]