NEWS RELEASE

Soft N Dry TreeFree Diaper™ New econoLiite Core™ for Discount Retail

TORONTO, CANADA & FRANKFURT AM MAIN, GERMANY & PUERTO VALLARTA, MEXICO / October 28, 2024 – Soft N Dry Diapers Corp. ("Soft N Dry" or "SDC"), a category leader in tree-free disposable baby diaper technologies, today announces the launch of its new econoLiite Core™, a sustainable, EUDR complaint, high-performance diaper core designed specifically for Discount retail private label diapers in Europe and the UK to ship in beginning of 2025.

“The addition of econoLiite Core™ to Soft N Dry’s TreeFree Diaper™ line offers a cost effective, EUDR compliant sustainable private label diaper solution for OEM diaper makers and downstream Discount Retail partners in Europe and the UK,” said Matthew Keddy, CEO of Soft n Dry Diapers Corp. “Overall sales of private label in Europe hit the €340 billion mark last year, an all-time record, and make up nearly 40% total grocery market value, according to PLMA. The inflection point is apparent for Discount Retailers, with market share is to be gained in the new tree-free diaper category in tandem with a break from incumbent CPG brands in the new EUDR era.”

For media use: Soft N Dry private/white label TreeFree Diaper™ with econoLiite Core™

The analysis from PLMA’s International Private Label Yearbook, for which NielsenIQ surveyed 17 European markets, includes some 500 retailers and hundreds of food and non-food supermarket products. Additionally, reports show that almost 65% of UK shoppers have switched their shopping habits to Discounters, while the younger demographics were the most likely to have switched to Discount retailers, rising to nearly 80% of millennials and Gen Z, the two generations statistically speaking that are welcoming their first child at greater numbers.

Soft N Dry Value Proposition to Discount Retailers

Discount retailers in Europe and the UK are positioned to benefit from the econoLiite Core™ launch. As consumers shift towards private-label products - this presents an opportunity for Discount retailers to differentiate their store brands with EUDR complaint, lower cost, high performance tree-free diaper alternatives in the beginning of 2025. The econoLiite Core™ enables Discounter retailers to strengthen their commitment to sustainability, while aligning with the eco and cost-conscious purchasing habits of today’s families.

Retailer advantages:

1. Sustainability-driven consumer appeal: Discount retailers offering TreeFree Diaper™ powered by econoLiite Core™ can capture market share in the growing sustainable tree-free diaper segment.
2. Compliance with EUDR: Discount retailers can ensure that their products meet the highest sustainability standards, avoiding deforestation-linked materials altogether as new EUDR regulations take effect.
3. Higher margins: Discount retailers can improve margins and capitalize on the strong consumer demand for sustainable products by offering private-label diapers powered by econoLiite Core™.

Soft N Dry Value Proposition for OEM Diaper Manufacturers

OEM partners and diaper manufacturers working with Soft N Dry’s new econoLiite Core™ benefit from their reduced production costs and improved sustainability metrics. With its thinner, more efficient design, econoLiite Core™ requires fewer raw materials while maintaining top-tier performance, offering manufacturers the ability to scale their production, while utilising their previously installed equipment, and meet increasing new consumer demand.

Diaper Manufacturer benefits:

1. Cost savings: econoLiite Core™ provides diaper manufacturers with lower production costs due to reduced material needs and improved emissions outcomes while running on existing equipment.
2. Sustainability gains: econoLiite Core™ helps diaper manufacturers meet EUDR compliance standards immediately, thus reducing environmental impact by eliminating tree-based materials altogether.
3. Market growth potential: OEMs and diaper manufacturers can take advantage of the rising demand for EUDR compliant products with econoLiite Core™, positioning themselves as leaders in the high-growth sustainable private label diaper market.
4. Retail Consumer Connection Program: Soft N Dry provides new retail accounts and ongoing marketing support for OEMs and diaper manufacturers to supply finished goods.

“econoLiite Core™ is our innovation driven response to the growing demand for affordable, EUDR ready, high margin private label diapers in the very important Discount retail segment in Europe and UK,” said Matthew Keddy, CEO of Soft N Dry Diapers Corp. “As the market shifts towards tree-free diaper products, we are committed to providing solutions that meet both consumer, Discount retail, and OEM diaper manufacturer’s needs and regulatory requirements. Our new econoLiite Core™ technology ensures that retailers, manufacturers, and consumers alike can participate in the TreeFree Diaper™ era, and an environmentally responsible future where costs come down, and performance goes up, which is innovation at its core.”

About Soft N Dry Diapers Corp.

Soft N Dry Diapers Corp. ("Soft N Dry" or "SDC") is a Canadian company specializing in tree-free, advanced materials for the $85.2 billion global disposable baby diaper market. Utilizing its proprietary ecoLiite Core™ and econoLiite Core™ technologies, Soft N Dry delivers superior product performance and sustainability to commercial manufacturing and retail customers across North America, Latin America, the UK and Europe, outperforming traditional tree-pulp-based materials in the new TreeFree Diaper™ category.

For more information or to schedule a consultation, visit us at www.softndrycorp.com or contact us directly:

Contact Information:

o Soft N Dry Diapers Corp. - 40 King St W, 42nd Floor Toronto, Ontario, Canada M5H 3Y2 – Tel. + 1 800 310 4614 for Media and + 1 800 265 0643 for Investor Relations in North America – press@softndrycorp.com

Forward-Looking Statements

Cautionary Note Regarding Forward-Looking Statements

This press release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, timing, assumptions or expectations of future performance, including the terms and conditions of the Proposed Transaction and future developments and the business and operations of the "Resulting Issuer" after the Proposed Transaction are forward-looking statements and contain forward-looking information. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". Forward-looking statements are based on certain material assumptions and analysis made by the Corporation and the opinions and estimates of management as of the date of this press release, including that the terms and conditions of the Proposed Transaction will be as anticipated by management and future developments and the business and operations of the "Resulting Issuer" after the Proposed Transaction will be as anticipated by management. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Corporation to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Important factors that may cause actual results to vary, include, without limitation, that the terms and conditions of the Proposed Transaction will not be as anticipated by management or will not close at all; the terms and conditions of the Proposed Financing will not be as anticipated by management or will not close at all; and future developments and the business and operations of the "Resulting Issuer" after the Proposed Transaction will not be as anticipated by management. Although management of the Corporation has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Corporation does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws.

SOURCE: Soft N Dry Diapers Corp.