NEWS RELEASE

Soft N Dry TreeFree Diaper™ Now With ecoLiite Core™

TORONTO, CANADA / September 17, 2024 – Soft N Dry Diapers Corp. (“Soft N Dry” or “SDC”), the leading innovator in tree-free disposable baby diapers, announced today the launch of its most advanced diaper core technology to date: the ecoLiite Core™. Designed to replace the company's first generation ecoFlex line, the new ecoLiite Core™ offers superior performance and sustainability for OEMs and retailer own brands, with a focus on compliance and reporting with the new EU Deforestation-Free Regulation (EUDR).

The ecoLiite Core™ represents a significant step forward in diaper technology, reinforcing Soft N Dry's commitment to environmentally responsible products that cater to the needs of the commercial market, consumers, and the planet. Utilizing advanced materials and innovative engineering, the new core enhances absorbency, durability, and comfort while maintaining a 100% tree-free formulation. This ensures a reduced carbon footprint and greater cost efficiency for all market participants across the board compared to traditional tree fiber-based diaper cores.

"As we introduce ecoLiite Core™ to the market, we're taking a crucial step in revolutionizing the disposable diaper industry towards profitability and sustainability," said Matthew Keddy, CEO of Soft N Dry. "Our new ecoLiite Core™ technology not only meets the highest standards of performance and comfort but also addresses the global demand for eco-friendly baby care products. Additionally, ecoLiite Core™ equips OEM partners and retailers with robust Environmental, Social, and Governance (ESG) and sustainability reporting tools, enabling them to meet growing consumer expectations for transparency and ethical sourcing in the new tree free diaper EUDR era."

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

Focus on European Market Growth and Compliance

The European diaper market is undergoing substantial growth, with the market size reaching 44.3 billion units in 2023 and projected to grow to 70.1 billion units by 2032, according to the IMARC Group. This growth represents a compound annual growth rate (CAGR) of 5.1% from 2024 to 2032. The baby diaper market's revenue in Europe is anticipated to reach USD $9.34 billion in 2024, driven by increasing demand for baby care products across the continent.

With the new EU Deforestation-Free Regulation (EUDR) taking effect on January 1, 2025, diaper companies operating in the European Union will face stringent new requirements to ensure their products do not contribute directly to deforestation. This regulation mandates strict reporting standards for products containing key commodities, such as wood commonly used in most all disposable baby diapers in the form of processed wood fibre diaper cores, to ensure they are sustainably sourced and deforestation-free. As a result, OEMs, retailers, and 449 million consumers in Europe must adapt to rigorous new sustainability standards and a tree free diaper era.

Soft N Dry's ecoLiite Core™ is strategically positioned to meet these new demands. As a tree-free alternative, it offers a sustainable, high-performance solution that aligns perfectly with EUDR requirements. By integrating ecoLiite Core™ into their own products, Manufacturers and Retailer customers of Soft N Dry can ensure compliance with upcoming regulations, provide sufficient reporting, reduce their environmental impact, and cater to the increasing market of eco-conscious consumers and the growing demand for change.

Availability and Market Impact

Effective immediately, the ecoLiite Core™ is available for OEMs and Retailers to incorporate into their own baby diaper brands and related products. This advanced core technology provides Soft N Dry customers with a cost-effective, high-performance alternative to traditional materials, supporting their need to comply with the evolving regulatory landscape and meet the heightened expectations for sustainability while delivering superior product performance.

About Soft N Dry Diapers Corp.

Soft N Dry Diapers Corp. ("Soft N Dry" or "SDC") is a Canadian company specializing in TreeFree Diaper™ advanced materials for the $60 billion global disposable baby diaper market. Leveraging its proprietary ecoLiite Core™ technology, Soft N Dry offers superior product performance and sustainability to commercial Manufacturing and Retail own brand Customers across North America, Latin America, and Europe, outperforming traditional tree-pulp-based materials in the new TreeFree Diaper™ category across product performance, price, and environmental impact to families these products serve.

Both TreeFree Diaper™ and ecoLiite Core™ are Registered Trademarks of Soft N Dry Diapers Corp.

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.

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