Ann: Increased Sales Lead to Record Monthly Product Shipments, page-2

Increased Sales Lead to Record Monthly Product Shipments Highlights:
• Tracking 90,000kg of Alexicool™ Product Shipments for June
• 8th Consecutive Record Month of Product Shipments
• New Shanghai based Finishing Partner

Continued Gains in the Mattress Industry Sales into the mattress industry continue to trend sharply upward as orders of Alexicool™ to mattress fabric producers in the month of June to date already exceed revenues for May and will be Alexium’s 8th consecutive record month of sales. Shipments of Alexicool™ chemistry (which includes both Fire Retardant (FR) and thermal regulation phase change materials (PCM) components) for June are tracking to exceed 90,000 kg which represents an eight-fold increase over our monthly shipments just five months ago in January. In addition, later this month Alexium will make its first shipment of Alexicool™ to the single largest producer of mattress fabrics in the world, which we expect to drive continued sharp increases in sales. These increases, coupled with Alexium’s presence at the recent Interzum bedding show in Germany and the upcoming summer Las Vegas Furniture Market, are creating a firm foundation for sustainable growth and a profitable first half of FY2018.

Ramping Up Production on Pillows At the start of 2017, Alexium announced a new partnership with Pegasus Home Fashions as our first step in addressing the thermal regulation needs of the pillow market. Following completion of product refinement and marketing, last week, Alexium’s Development Manager, Dick Estes, visited our newest finishing partner in Shanghai to facilitate a fullscale manufacturing rollout of Alexicool™ onto a wide range of production fabrics to be made into pillows to meet customer orders. With more than 200 plus manufacturing, distribution and retail customers in 33 countries, this particular partner’s plant in Shanghai serves as an ideal hub for global customers to collaborate with Alexium on innovative solutions. In addition to helping Alexium address a pillow market that sells in excess of 100,000,000 units annually, this partnership yields the opportunity for Alexium to provide innovative technology solutions for other end products through the partner’s network of home textile, mattress, hospitality and apparel industries worldwide.

We will provide the market with updates on rising sales of our Alexiflam™ series FR products, including licensing discussions on our Alexiflam NF™ product, in our next 4C quarterly update along with updates on new products and new FR and PCM product sectors. This release is to highlight the rapid, month on month, sales growth in Alexicool™ combination FR and PCM product.

Laters..