Mr. Josh Bruni reports

AMERICAN AIRES ANNOUNCES Q2 2024 RESULTS WITH STRONG 45% YOY SALES GROWTH; AND ENGAGES CLARKHAM CAPITAL LTD

American Aires Inc. has filed the company's financial statements and management's discussion and analysis (MD&A) for Q2 (second quarter) 2024.

Over all, quarterly performance was in line with American Aires management's expectations.

Cash and cash equivalents were reported at $3.8-million, compared with $30,000 as of Dec. 31, 2024, and $300,000 a year ago. Inventory increased significantly to $1.5-million from $300,000 in the same quarter a year ago, as part of the management's strategy to safeguard the growth in sales.

Sales increased year over year by 45 per cent or $900,000 to $2.8-million from $1.9-million reported in Q2 2023, following recent advertising and marketing initiatives. A notable contributor to Q2 2024 sales growth was the success of chief executive officer Josh Bruni's appearance on the Health Uncensored with Dr. Drew show, aired on FOX Business Network on May 2, 2024, which catalyzed a notable uptick in order volume. In addition, the sales received considerable tailwind from the previously announced partnership with video platform Rumble and launched a campaign featuring Russel Brand. The company also expanded internationally by opening a fulfilment centre, Bardon Hill, United Kingdom, to improve sales and service to the domestic U.K. market.

During Q2 2024, the company entered into a number of strategic marketing partnerships and increased its advertising spend to drive this strong year-over-year growth. The company notes that the ramp-up of each partnership is a process that takes time and preparation. Such efforts include crafting partnership strategies that connect the Aires Tech brand with peak performance and health in the minds of consumers, content capture that demonstrates that consumer connection to the brand, editing and launching ads, monitoring, and optimization. Management anticipates the full benefit, greater market awareness and sales growth, to be realized over the next six to 12 months. Despite an increase in the cost of advertising associated with the upcoming presidential election in the United States, management remains committed to its strategy of strong year-over-year sales growth in 2024 and beyond.

Building on the brand's momentum, Aires Tech has entered into a hallmark, multiyear global marketing partnership with Ultimate Fighting Championship (UFC) and a marketing partnership with John Tavares of the National Hockey League's (NHL) Toronto Maple Leafs. After the quarter-end, the company announced additional partnerships with Canada Basketball, Toronto Raptors' RJ Barrett, World Wrestling Entertainment (WWE) and strategic partnerships amplification firm Gray Wolf. These partnerships are intended to be used as building blocks in management's overarching strategy of supporting athletes in their pursuit of excellence while educating the public about the importance of EMF protection. Together, management aims these partnerships to position the Aires Tech brand as a recognized brand in the EMF protection and health optimization segment with access to mass markets.

"Through our strategic marketing partnerships, we've been able to grow our brand and position our products' performance benefits, including improved sleep quality, recovery times and cognitive function, prominently with global audiences of sports fans and elite athletes," said Mr. Bruni. "As we scale our brand and grow sales, our alliances with top-tier performance organizations like UFC, WWE and Canada Basketball showcase the real-world applicability and effectiveness of our EMF protection technology. By showcasing these benefits in competitive environments, we validate our technology and its potential to improve lives across society."

Gross profit improved $600,000 or 50 per cent year over year to $1.7-million, while gross marin as percentage of sales improved to 61 per cent from 59 per cent a year ago. Advertising and promotion expenses increased $500,000 or 66 per cent to $1.4-million, reflecting additional investment into new content creation, strengthening of the affiliate program, and increased spend on digital and social media advertising. Marketing expenses increased $200,000 or 33 per cent to $700,000, reflecting the addition of new marketing partnerships. Office and general increased 23 per cent to $100,000, and consulting and payroll increased 34 per cent to $300,000, reflecting the company's efforts to build up team to manage higher level of sales, as well as bringing more public company functions in-house for better control and execution. Legal and professional expenses decreased dramatically by 57 per cent from the previous year to $40,000. As a result, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss for Q2 2024 was reported at $800,000, compared with a loss of $600,000 a year ago, largely due to higher marketing and overhead costs, which is in line with company expectations. Management continues to prioritize the balance between sales growth and EBITDA profitability as the company further develops the already announced marketing partnerships.

Additionally, Andrew Michrowski will resign from American Aires's board of directors and transition to the company's science advisory board. In his new role, Mr. Michrowski will help further build American Aires's research and development roadmap, whicih explores additional use-cases for the company's cutting-edge EMF diffraction technology. Mr. Michrowski will lead strategy development, and oversee the scientific studies and trials that will provide the company with a better understanding of how American Aires's technology can further optimize health and performance for customers.

Lastly, the company has also engaged Clarkham Capital Ltd. (phone: 44-20-3883-9398; address: Flat 285 -- 61 Praed St., London, U.K., W2 1NS) to provide investor relations and consulting services with a focus on the German stock market and the German-speaking investor community. The services will include the preparation of articles and coverages on several financial platforms and newsletters. The services will also include the translation and distribution of news releases in Germany. The services commence on Aug. 26, 2024, and end on Oct. 26, 2024. The company will pay Clarkham 100,000 euros for its services. The company will not issue any securities to Clarkham in consideration of the services. The company and Clarkham deal at arm's length.

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 protect against the harmful effects of electromagnetic radiation (EMR). American Aires's Lifetune products target EMR emitted by consumer electronic devices such as cellphones, computers, baby monitors and Wi-Fi, 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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