Mr. Yona Shtern reports

HAPBEE PROVIDES UPDATE ON PRODUCT SUBSCRIPTION GROWTH

Hapbee Technologies Inc. has provided the following update on its Hapbee Neckband subscription growth.

Key highlights:

• Hapbee shipped 1,253 units during Q1 2022, an increase of 60 per cent over Q1 2021.
• Hapbee registered 2,941 subscribers at end of Q1 2022, an increase of 246 per cent over Q1 2021.
• Paid subscriber retention after six months increased from 22 per cent in September, 2021, to 65 per cent in March, 2022, driven by significant improvements to customers' in-app experience, expansion of blends and investment in an automated back-end billing system.
• Over 220,000 hours of Blend playtime in Q1 2022 was consumed by Hapbee subscribers, an increase of 350 per cent over Q1 2021, demonstrating improved engagement in the digital wellness platform. The number of blends played per user per month increased by 100 per cent from 15 in Q1 2021 to 31 in Q1 2022.
• Hapbee subscribers consumed 6.1 different blends during the month of March, as compared with 3.5 in August, 2021, prior to the launch of Lifestyle Blends. This indicates stronger engagement and utility on Hapbee's platform.

The company is also pleased to report that roughly 60 per cent of Hapbee users played the Deep Sleep Blend in March, 2022, highlighting one of Hapbee's top use cases: sleep. Refer to Hapbee's top five blends ranked by percentage of users in March, 2022, as follows:

• Deep Sleep -- 59 per cent;
• Bedtime -- 46 per cent;
• Wake Up -- 38 per cent;
• Master Your Attention -- 32 per cent;
• Morning Coffee -- 32 per cent.

As part of its comprehensive growth strategy, Hapbee is focused on scaling cost-effective product sales and customer acquisition through continuing testing and optimization of its business-to-consumer (B2C) strategy. Additionally, Hapbee is pursuing the development of business-to-business (B2B) sales and marketing initiatives, enabling the company to further expand the delivery of its products, increase its subscribers and grow its overall brand profile.

"The first quarter of 2021 saw Hapbee grow its subscriber base substantially year over year while increasing customer retention and engagement," said Yona Shtern, chief executive officer of Hapbee. "The improvements our team made to the in-app experience and payment system and the new blends we introduced significantly increased customer usage and retention, as highlighted by the 220,000 hours of Blend playtime in Q1. During the second and third quarters of 2022, we intend to continue advancing both B2C and B2B [business-to-business] distribution channels to increase Hapbee sales while preparing for the successful launches of our two new sleep-related products currently in development."

About Hapbee Technologies Inc.

Hapbee is a leading wearable wellness technology platform with a mission to help people improve their well-being and enhance how they feel. The company is the creator of the Hapbee Neckband, the Sleepbee Sleep Mask and the Sleepbee Bed Topper, which are all powered by the Hapbee app -- a patented biostreaming platform that delivers ultralow-power electromagnetic blends designed to help users optimize their sleep, productivity, recovery and downtime.

Hapbee products are available for purchase at the Hapbee website and through a growing network of authorized Hapbee dealers.

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