Mr. Chris Bitsakakis reports

AIRBOSS ANNOUNCES NEW CONTRACTS VALUED AT UP TO US$15.6M AND PROVIDES UPDATE ON EXISTING PROGRAM

Airboss of America Corp.'s Airboss Defense Group, Airboss Manufactured Products' defence business, has received an order from armasuisse, in support of Swiss Defense Forces personnel, for ADG moulded Airboss lightweight overboots and an order from a partner nation for ADG low-burden masks, filters and related accessories. The combined value of these contract awards is expected to be worth up to $15.6-million (U.S.).

The MALO contract is a two-year contract, expected to be valued at up to $9.2-million (U.S.). The MALO was designed to provide superior protection against chemical and biological threats while providing optimal fit and comfort, and Airboss overboots have been purchased by over 60 countries, with 6.1 million pairs sold to date. Deliveries under this contract are expected to commence in the third quarter of 2025.

The contract for LBMs, filters and related accessories is expected to be valued at up to $6.4-million (U.S.). The LBM is a lightweight military respirator designed to provide optimum weight distribution and minimal breathing resistance, and has been sold to multiple partner nations since 2017. Deliveries under this contract are also expected to commence in the third quarter of 2025, with fulfilment expected in the first quarter of 2026.

The company also advises that it is currently assessing potential delays in the delivery schedule under the previously announced contract for Bandolier lightweight multipurpose energetic systems, valued at up to $45-million (U.S.). These delays are related to supply chain constraints affecting certain critical components. The company continues to work closely with its suppliers and government partners to mitigate these impacts, particularly in light of challenges resulting from the current geopolitical climate, though the timing of future shipments may be adjusted. To date, the company has completed deliveries valued at $17-million (U.S.) under this contract and has units worth an additional $2.5-million (U.S.) in transit. Further updates will be provided as more information becomes available.

"These two new contracts, building upon recently announced awards, highlight the continued positive momentum in our defence business," said Chris Bitsakakis, president and co-chief executive officer of Airboss. "At the same time, we are actively managing challenges presented by the current geopolitical climate, the impact of tariff uncertainty and constraints in global supply chains, including the potential impact to delivery timelines under the current Bandolier contract. The defence business remains committed to delivering protective and survivability solutions to our customers, and we look forward to continuing to provide these products to ensure the safety of war fighters operating in challenging environments and conditions."

About Airboss of America Corp.

Airboss of America is a diversified developer, manufacturer and provider of survivability solutions, advanced custom rubber compounds and finished rubber products that are designed to outperform in the most challenging environments. Founded in 1989, the company operates through two divisions. Airboss Rubber Solutions is a North American custom rubber compounder with 500 million turn pounds of annual capacity. Airboss Manufactured Products is a supplier of anti-vibration and rubber-moulded solutions to the North American automotive market and other sectors, and also a global supplier of personal and respiratory protective equipment and technology for the defence, health care, medical and first responder communities, through its Airboss Defense operations. The company's shares trade on the Toronto Stock Exchange under the symbol BOS and on the OTCQX under the symbol ABSSF.

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