File: '\\swfile\EmailIn\20260915 170528 Attachment Else Q2 26 earnings PR final -Sept. 15 2026.docx'

NEWS RELEASE

Else Nutrition Reports Second Quarter 2026 Results Highlighting Improved Margins, Lower Net Loss and Path Toward Profitability

VANCOUVER, BC, September 15, 2026 - ELSE NUTRITION HOLDINGS INC. (BABY) (BABYF) ("Else" or the "Company"), today reported financial results for the 2026 second quarter ended June 30, 2026. All figures are in Canadian dollars unless otherwise indicated. The financial statements and MD&A are available on SEDAR under the Company's profile.

"The second quarter continued to demonstrate the meaningful impact of the restructuring and cost-efficiency initiatives we have implemented over the past year," said Hamutal Yitzhak, Chief Executive Officer of Else Nutrition. "While revenue remained constrained by our limited working capital and resulting inventory shortages, including out-of-stock positions across many of our products and several of our best sellers, the underlying economics of the business continued to improve. We are currently completing production to replenish inventory, and restoring product availability remains our immediate commercial priority."

"For the first six months of 2026, gross margin increased to approximately 32% from approximately 13% in the first half of 2025, despite revenue declining to $2.49 million from $3.59 million. At the same time, operating expenses declined by approximately 32% to $2.43 million from $3.60 million, and net loss was reduced by approximately 69% to $1.61 million from $5.10 million. We believe these results demonstrate that the cost efficiencies achieved through our restructuring are sustainable and provide a substantially stronger operating foundation from which to scale. Notwithstanding these operational improvements, the Company continues to face significant working capital constraints and limited liquidity, and its ability to restore inventory levels, fully satisfy customer demand and execute its growth plans remains dependent on securing additional capital".

"Our current revenue performance does not reflect the level of consumer demand we believe exists for Else products; rather, it reflects our present ability to finance production and maintain adequate inventory. Subject to securing sufficient capital to fund production and working capital, we believe restoring consistent availability of our core products can drive a meaningful recovery in revenue without rebuilding the cost structure that existed historically. With adequate funding to support production, inventory replenishment and growth, management believes the Company has a pathway to achieving initial profitability within approximately 12 to 15 months."

"Looking ahead, our immediate priorities are securing capital, rebuilding inventory, restoring service levels to customers and retailers, and converting the operational efficiencies achieved over the past year into sustainable financial performance. We remain focused on positioning Else to achieve positive cash flow and long-term profitability," concluded Ms. Yitzhak.

2026 Second Quarter and First Half Financial Results

All figures are in CAD unless otherwise indicated.

Revenue for the three months ended June 30, 2026 was $1.02 million, compared to $1.50 million in the second quarter of 2025. Revenue for the first six months of 2026 was $2.49 million, compared to $3.59 million in the first six months of 2025. The decrease primarily reflects inventory shortages and out-of-stock positions resulting from working capital constraints.

Operating expenses for the second quarter of 2026 decreased to $1.24 million from $1.34 million in the second quarter of 2025. For the first six months of 2026, operating expenses decreased approximately 32% to $2.43 million from $3.60 million in the comparable prior-year period.

Gross profit for the second quarter of 2026 was $224 thousand, representing a gross margin of approximately 22%, compared to a gross loss of $55 thousand in the second quarter of 2025. For the first six months of 2026, gross profit increased to $809 thousand, representing a gross margin of approximately 32%, compared to gross profit of $454 thousand and a gross margin of approximately 13% in the first half of 2025.

Net loss for the second quarter of 2026 decreased to $1.05 million from $1.44 million in the second quarter of 2025. For the first six months of 2026, net loss decreased approximately 69% to $1.61 million from $5.10 million in the first half of 2025.

Cash and cash equivalents as of June 30, 2026 were $116 thousand, including restricted cash.

The Company filed its second quarter 2026 financial statements and related filings on September 14, 2026, resulting in the lifting of the cease trade order effective September 16, 2026, at which time the Company's common shares will return to normal trading. The financial statements and MD&A are available on SEDAR under the Company's profile.

About Else Nutrition Holdings Inc.

Else Nutrition Holdings Inc. (CSE: BABY, OTCQX: BABYF) is a food and nutrition company in the international expansion stage focused on developing innovative, clean, and plant-based food and nutrition products for infants, toddlers, children, and adults. Its revolutionary, plant-based, non-soy formula is a clean-ingredient alternative to dairy-based formulas. Since launching its Plant-Based Complete Nutrition for Toddlers, made of whole foods, almonds, buckwheat, and tapioca, the brand has received thousands of powerful testimonials and reviews from parents, gained national retailer support, and achieved rapid sales growth.

Awards and Recognition:

"2017 Best Health and Diet Solutions" award at Milan's Global Food Innovation Summit

#1 Best Seller on Amazon in the Fall of 2020 in the New Baby & Toddler Formula Category

"Best Dairy Alternative" Award 2021 at World Plant-Based Expo

Nexty Award Finalist at Expo West 2022 in the Plant-Based lifestyle category

During September 2022, Else Super Cereal reached the #1 Best Seller in Baby Cereal across all brands on Amazon

In May 2024 Else Nutrition's Ready-to-Drink Kids Vanilla Shake Named Among the Best in Family-Friendly Products by the Prestigious Mom's Choice Awards(TM)

Investor Relations Contact:

Alexandra Schilt

Crescendo Communications, LLC

Office: (212) 671-1020

Email: baby@crescendo-ir.com

TSX

Neither the TSX nor its regulation services provider (as that term is defined in the policies of the TSX) accept responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Statements

This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements are based on management's current expectations, estimates, projections, beliefs and assumptions and are typically identified by words such as "may," "will," "should," "expect," "intend," and similar expressions, or statements that certain actions, events or results may occur or be achieved. Forward-looking statements in this press release include, but are not limited to, statements regarding the Company's ability to secure additional capital, fund production and working capital requirements, replenish inventory, restore product availability and service levels, manage expenses, maintain or improve gross margins, convert operational efficiencies into sustainable financial performance, achieve positive cash flow or initial profitability within the anticipated timeframe or at all, execute its growth plans, and continue as a going concern. These forward-looking statements are based on assumptions that management believes are reasonable in the circumstances, however actual results may differ materially from those expressed or implied by forward-looking statements as a result of known and unknown risks, uncertainties and other factors, including risks related to limited liquidity and working capital constraints, the Company's ability to raise additional capital when required or on acceptable terms, inventory shortages and out-of-stock positions, production delays, supply chain and logistics disruptions, retailer and consumer demand, competition, changes in costs, pricing or margins, regulatory and market conditions,, and the other risks described in the Company's public disclosure documents filed under its profile on SEDAR+. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of this press release, and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.