Mr. Josh Bruni reports

AMERICAN AIRES ANNOUNCES Q1 2024 RESULTS WITH STRONG 37% YOY SALES GROWTH DESPITE TRADITIONALLY SOFT Q1 CONSUMER SPENDING

American Aires Inc. has filed the company's financial statements and management's discussion and analysis for first quarter 2024.

Quarterly performance was in line with American Aires management's expectations, with a strong 37-per-cent year-over-year increase in sales despite expected Q1 consumer spending weakness due to fourth quarter traditionally increased seasonal purchases. Management also notes that order volume growth materially increased in April, 2024, to 47 per cent year over year and to date in May, 2024, to 132 per cent YoY. The company improved its balance sheet in the quarter, with cash balance going from $30,000 in Q4 2023 to $2.3-million in Q1 2024 as a result of an oversubscribed $4-million financing in February, 2024. Subsequent to Q1 2024, the company further strengthened its treasury by closing a financing in two tranches in May, 2024, for gross proceeds of $3,770,465 to American Aires.

American Aires chief executive officer Josh Bruni commented: "Now that Q1 and our heavy lifting on the [investor relations] front are behind us, we're refocusing our efforts on deploying the capital we raised across three major fronts: forging prominent new marketing partnerships, building universal brand awareness and expanding internationally. In other words, continuing to do what's enabled our multiyear trajectory of significant revenue growth so we can make 2024 our best year ever. With a stronger balance sheet to fuel the process, we'll scale up our growth engine's proven data-driven advertising model for greater efficiency and effectiveness. We'll also continue to create strategic marketing partnerships and seek mass media exposure that can help grow sales and build Aires Tech into a household brand as we've already done through our partnerships with former NFL record-setter Tiki Barber, UFC star Maycee Barber and representative of the stars WME (William Morris Endeavor), and through our coverage on Fox Business Network's popular Dr. Drew show and on Rumble's video platform featuring Russell Brand reading Aires ads. When you put it all together, our expectation is for our YoY sales growth to accelerate through the remainder of the year."

Management strategically increased its focus on capital market initiatives during Q1 2024 to widen awareness of the company within the investment community and to raise sufficient capital to enable future sales growth by scaling up data-driven advertising, promotion and marketing investments. Capital market initiatives included the execution of two equity financings; uplisting the company's OTC listing to OTCQB to attract more United States-based investors; and strategic IR campaigns and investor meetings to introduce or provide updates about the American Aires story to individual investors, financial advisers and investment banks. Management will continue building on the ground gained through these initiatives though at a more measured pace.

The American Aires stock price trended up strongly throughout Q1 2024, rising from 20 cents on Jan. 2 to 95 cents as of May 28, 2024.

The 63-per-cent increase in advertising and promotion expenses in Q1 2024 was consistent with management's expectations and its annual strategy of pro-actively investing in Q1 toward creating new partnerships and brand content that will have its largest impact on sales growth in the year's following quarters. This investment strategy drove strong sales growth on an annual basis in both 2022 and 2023, and materially increased its order volume growth in April, 2024, to 47 per cent YoY and to date in May, 2024, to 132 per cent YoY.

The 27-per-cent period-over-period increase in marketing expenses was mainly due to a marketing partner switching from being paid 30 days after month's end to instead being paid at the start of each month, which created a higher-than-usual marketing expense for a single month in Q1 2024. Otherwise, the increase in marketing expenses would have been only 6 per cent POP.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss increased slightly by $241,720 (that is, 38 per cent) due to the discussed increases in brand development and content creation costs combined with higher overhead.

About American Aires Inc.

American Aires is a Canadian-based nanotechnology company committed to enhancing well-being and environmental safety through science-led innovation, education and advocacy. The company has developed a proprietary silicon-based resonator that protects against the harmful effects of electromagnetic radiation. American Aires's Lifetune products target EMR emitted by consumer electronic devices such as cellphones, computers, baby monitors and WiFi, including the more powerful and rapidly expanding high-speed 5G networks. American Aires is listed on the Canadian Securities Exchange under the ticker WIFI and on the OTCQB under the symbol AAIRF.

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