AirBoss Announces Over US$123 Million of Contracts for PPE to Support U.S. Strategic National Stockpile and the Veterans Health Administration

NEWMARKET, Ontario, July 27, 2020 (GLOBE NEWSWIRE) -- AirBoss of America Corp. (TSX: BOS) (the "Company" or "AirBoss") today announced that AirBoss Defense Group ("ADG") has been awarded a contract by the U.S. Department for Health and Human Services ("HHS") – Office of the Assistant Secretary for Preparedness and Response ("ASPR") for the manufacture and sale of 50,000 FlexAir™ Powered Air Purifying Respirator ("PAPR") systems, 3,000,000 high efficiency filters and related accessories, including spare protective hoods, for delivery to the Strategic National Stockpile ("SNS").  The contract is expected to be worth an aggregate amount of US$121 million.

"As the COVID-19 pandemic continues to evolve, federal organizations are increasingly examining ways to both manage their ongoing response, and also address their future emergency preparedness," said Chris Bitsakakis, President and Chief Operating Officer of AirBoss. "Based on our work on the recently awarded FEMA contract, ADG is cementing its reputation for being able to deliver large volumes of product on short timelines. This latest win further validates our decision to form ADG, creating a larger and more sophisticated survivability solutions platform that can access and secure a broader range of contracts than AirBoss could previously on its own."

At the end of March, ADG announced a US$96 million contract award from the U.S. Federal Emergency Management Agency ("FEMA"). To date, ADG has delivered more than 90% of that contract and is currently manufacturing approximately 10,000 PAPR systems each week. Deliveries on the HHS contract are expected to commence in the third quarter of 2020, following completion of the FEMA contract, and continue into early 2021. ADG manufactures its PAPR systems in Landover, MD, Auburn Hills, MI, Scotland Neck, NC and Charleston, SC.

ADG also announced that the Veterans Health Administration of the U.S. Department of Veterans Affairs ("VA") has placed a sustainment order for 60,000 high efficiency filters and 20,000 protective hoods to establish a contingency stockpile of consumables for the ongoing fight against COVID-19. This sustainment order supports the continued use by VA medical personnel of the more than 10,000 PAPR systems that had been delivered to the agency earlier this year under the FEMA contract. The value of this sustainment contract is expected to be $2.55 million, and the deliveries are expected to commence in the third quarter. Sustainment orders for PAPR system consumables are expected to generate a recurring revenue stream for ADG.

The FlexAir^TM PAPR system is a compact, lightweight Powered Air Purifying Respirator system with an onboard lithium-ion battery installed in the waist-mounted blower unit. The design permits the use of two high efficiency particulate filters at a time providing protection against particulates, aerosols and biohazards, offering a very high level of defense against viruses like COVID-19. Wearers are protected by having contaminated air purified by filtration media mounted on the PAPR blower unit and delivered via a lightweight breathing hose to the user’s head cover.

ADG and its predecessor companies have been designing and manufacturing PAPRs since 1985, with sales to all major service branches of the US military. In addition to the above HHS and VA contracts, ADG has received over $15 million in non-governmental orders for PPE during the current pandemic. ADG’s emergency response equipment and PPE are utilized by the U.S. Department of State, Office of Strategic Medical Preparedness, FEMA and CDC infectious disease treatment centres.

In addition, ADG has provided personal protective equipment to emergency first response teams and hospitals in hundreds of U.S. cities, as well as more than 30 countries worldwide. The Company successfully responded during the Middle East Respiratory Syndrome ("MERS") and Ebola outbreaks, by providing critical protective equipment to government and civilian first response customers.

AirBoss of America Corp.

AirBoss of America Corp. is a group of complementary businesses supplying custom compounded rubber, survivability solutions and anti-vibration components to a diverse group of customers globally. AirBoss Rubber Solutions is a top-tier North American custom rubber compounder with 450 million turn pounds of annual capacity. AirBoss Defense Group manufactures and supplies a growing array of Chemical, Biological, Radioactive, and Nuclear ("CBRN-E") protective solutions and is a leading provider of personal protective equipment to governments, militaries and frontline healthcare workers both in the U.S. and internationally. AirBoss Engineered Products is a supplier of innovative anti-vibration solutions to the North American automotive market. The Company’s shares trade on the TSX under the symbol BOS. Visit www.airbossofamerica.com or www.adg.com for more information.

Contact: Chris Bitsakakis, President or Gren Schoch, Chairman and CEO at 905-751-1188.

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” 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; dependence on key customers; 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, 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 and potential litigation; ability to obtain financing on acceptable terms; environmental damage and non-compliance with environmental laws and regulations; impact of global health situations; potential product liability and warranty claims and equipment malfunction. COVID-19 could also negatively impact AirBoss’ operations and financial results in future periods. There is increased uncertainty associated with future operating assumptions and expectations as compared to prior periods. As such, it is not possible to estimate the impacts COVID-19 will have on AirBoss’ financial position or results of operations in future periods. While the direct impacts of COVID-19 are not determinable at this time, AirBoss has undrawn credit facility as at March 31, 2020 that can provide financing up to $60,000. 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 this 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.sedar.com.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/837fce59-fa46-4e50-979f-680769886db6