AirBoss Announces U.S. Federal Government Contract for Personal Protective Equipment Valued at up to US$84 Million

NEWMARKET, Ontario, Sept. 10, 2024 (GLOBE NEWSWIRE) -- AirBoss of America Corp. (TSX: BOS) (OTCQX:ABSSF) (the “Company” or “AirBoss”) today announced that its wholly-owned subsidiary, AirBoss Defense Group (“ADG”), a global defense and survivability solutions provider of chemical, biological, radiological, nuclear, and explosive ("CBRNE") products, has been awarded a contract worth up to US$84 million by the U.S. Department of Health and Human Services (“HHS”) – Office of the Assistant Secretary for Preparedness and Response (“ASPR”) for the supply of protective isolation gowns. The contract base and option periods are funded at US$59M with a yet-unfunded option and surge amount valued up to US$25M. Deliveries under this contract are expected to commence in the fourth quarter of 2024 and continue through 2026. This award builds upon ADG’s history of providing protective and survivability solutions to the U.S. Federal Government.

“We believe that our track record in delivering critical medical equipment and supplies during the most challenging of times, has once again put us in a position to partner with HHS to supply a critical need. AirBoss Defense Group has continually demonstrated strength as a domestic supplier of personal protective equipment (“PPE”) designed to protect healthcare workers, first responders and military personnel against communicable diseases and CBRNE threats,” said Gren Schoch, Chairman and Co-CEO of AirBoss. “Our experience as a survivability solutions provider with global supply chain, and logistics management and decades-long experience in providing PPE to government agencies, will continue to enable AirBoss to support urgent needs across many of our product lines.”

Provision of isolation gowns under this contract are intended to supply the U.S. Strategic National Stockpile (“SNS”) and be issued by the U.S. Government as part of a holistic response to a national emergency and to supplement state, local, tribal and territorial medical supplies and equipment during public health emergencies. The supplies, medicines, and devices for lifesaving care contained in the SNS can be used as a short-term, stopgap buffer when the immediate supply of these materials may not be available or sufficient.

Over the past several years, ADG has delivered to the U.S. Government an aggregate of 150,000 proprietary powered air purifying respirator (“PAPR”) systems, more than 3.6 million PAPR filters and related accessories as well as 15 million boxes of patient examination gloves, and partnered with COVID test kit manufacturers to deliver over 120 million test kits to ASPR for public distribution. ADG is a survivability company that provides military, law enforcement, medical providers, industrial providers and first responders with a diverse portfolio of protective equipment that spans the entire survivability spectrum. Its emergency response and PPE is utilized by the U.S. Department of State, Federal Emergency Management Agency (FEMA) and Centers for Disease Control and Prevention and it has provided PPE to emergency first response teams and hospitals across the U.S. as well as more than 30 countries worldwide.

About AirBoss

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 North American custom rubber compounder with 500 million turn pounds of annual capacity. AirBoss Manufactured Products is a supplier of anti-vibration and rubber-molded 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 defense, healthcare, medical and first responder communities, through its AirBoss Defense operations. The Company’s shares trade on the TSX under the symbol BOS and on the OTCQX under the symbol ABSSF. Visit www.airboss.com for more information.

AIRBOSS FORWARD LOOKING INFORMATION DISCLAIMER

Certain statements contained or incorporated by reference herein, including those that express management’s expectations or estimates of future developments or AirBoss’ future performance, constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable securities laws, and can generally be identified by words such as “will”, “may”, “could” “expects”, “believes”, “anticipates”, “forecasts”, “plans”, “intends”, “should” or similar expressions. These statements are not historical facts but instead represent management’s expectations, estimates and projections regarding future events and performance.

Statements containing forward-looking information are necessarily based upon a number of opinions, estimates and assumptions that, while considered reasonable by management at the time the statements are made, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies. AirBoss cautions that such forward-looking information involves known and unknown contingencies, uncertainties and other risks that may cause AirBoss’ actual financial results, performance or achievements to be materially different from its estimated future results, performance or achievements expressed or implied by the forward-looking information. Numerous factors could cause actual results to differ materially from those in the forward-looking information, including without limitation: impact of general economic conditions, notably including its impact on demand for rubber solutions and products; dependence on key customers; global defense budgets, notably in the Company’s target markets, and success of the Company in obtaining new or extended defense contracts; cyclical trends in the tire and automotive, construction, mining and retail industries; sufficient availability of raw materials at economical costs; weather conditions affecting raw materials, production and sales; AirBoss’ ability to maintain existing customers or develop new customers in light of increased competition; AirBoss’ ability to successfully integrate acquisitions of other businesses and/or companies or to realize on the anticipated benefits thereof; AirBoss’ ability to successfully develop and execute effective business strategies; protests to government contracts which could result in the contracts awarded to AirBoss or its subsidiaries being modified or cancelled; changes in accounting policies and methods, including uncertainties associated with critical accounting assumptions and estimates; changes in the value of the Canadian dollar relative to the US dollar; changes in tax laws; current and future litigation; ability to obtain financing on acceptable terms and ability to satisfy the covenants set forth in such financing arrangements; environmental damage and non-compliance with environmental laws and regulations; impact of global health situations; potential product liability and warranty claims and equipment malfunction. There is increased uncertainty associated with future operating assumptions and expectations as compared to prior periods. This list is not exhaustive of the factors that may affect any of AirBoss’ forward-looking information.

All of the forward-looking information in this press release is expressly qualified by these cautionary statements. Investors are cautioned not to put undue reliance on forward-looking information. All subsequent written and oral forward-looking information attributable to AirBoss or persons acting on its behalf are expressly qualified in their entirety by this notice. Forward-looking information contained herein is made as of the date of this press release and, whether as a result of new information, future events or otherwise, AirBoss disclaims any intent or obligation to update publicly the forward-looking information except as required by applicable laws. Risks and uncertainties about AirBoss’ business are more fully discussed under the heading “Risk Factors” in our most recent Annual Information Form and are otherwise disclosed in our filings with securities regulatory authorities which are available on SEDAR+ at www.sedarplus.com.