PRESS RELEASE

Soft N Dry TreeFree Diaper™ introduces new econoLiite Core™ for discounter partners

FRANKFURT AM MAIN, GERMANY, TORONTO, CANADA & PUERTO VALLARTA, MEXICO / October 28, 2024 – Soft N Dry Diapers Corp. (“Soft N Dry” or “SDC”), a leader in tree-free disposable baby diapers, today announces the launch of its new econoLiite Core™, a sustainable, EUDR compliant high-performance diaper core specifically designed for the discount retailer private label sector in Europe and the UK, available in early 2025.

“The introduction of econoLiite Core™ into our TreeFree Diaper™ line provides a cost-effective, EUDR compliant, sustainable private label diaper solution for OEM diaper manufacturers and discounter partners in Europe and the UK,” said Matthew Keddy, CEO of Soft N Dry Diapers Corp. “Private label sales in Europe reached €340 billion last year and represent nearly 40% of the total grocery market, according to PLMA. The inflection point for discounters is clearly visible as market share can be gained in the new tree-free diaper segment coupled with a break with established CPG brands in the new EUDR era.”

For media use: Soft N Dry own brand TreeFree diaper™ with econoLiite Core™

Analysis from PLMA's International Private Label Yearbook, for which NielsenIQ surveyed 17 European markets, covers around 500 retailers and hundreds of food and non-food supermarket products. In addition, reports show that almost 65% of UK shoppers have shifted their shopping behaviour to discounters, with younger age groups most likely to switch to discounters. Almost 80% of Millennials and Generation Z - the two generations statistically most likely to be expecting their first child - are among them.

Soft N Dry Advantages for Discounters

Discounters in Europe and the UK are well positioned to benefit from the launch of econoLiite Core™. As consumers increasingly switch to own-brand products, there is an opportunity for discounters to differentiate themselves with EUDR-compliant, low-cost, high-performance tree-free diapers from early 2025. The econoLiite Core™ enables discounters to strengthen their commitment to sustainability while meeting the green and cost-sensitive purchasing habits of today's families.

Benefits for retailers:

1. Sustainability-oriented consumer approach: Discounters that offer TreeFree Diapers™ with econoLiite Core™ can capture market share in the growing tree-free diaper segment.
2. EUDR compliance: Discounters can ensure that their products meet the highest sustainability standards and do not contain any materials linked to deforestation.
3. Higher margins: Discounters can improve their margins and capitalize on strong consumer demand for sustainable products by offering private label diapers with econoLiite Core™.

Soft N Dry Benefits for OEM Diaper Manufacturers

OEM partners and diaper manufacturers working with Soft N Dry's new econoLiite Core™ benefit from reduced production costs and improved sustainability metrics. With its thinner, more efficient design, econoLiite Core™ requires fewer raw materials while maintaining peak performance, allowing manufacturers to scale production and meet growing consumer demand.

Benefits for diaper manufacturers:

1. Cost savings: econoLiite Core™ offers diaper manufacturers lower production costs thanks to reduced material requirements and improved emissions results, while continuing to use existing equipment.
2. Sustainability gains: econoLiite Core™ helps diaper manufacturers become instantly EUDR compliant and reduce their environmental footprint by completely eliminating tree-based materials.
3. Market growth potential: OEMs and diaper manufacturers can benefit from the increasing demand for EUDR compliant products with econoLiite Core™ and position themselves as leading players in the growing market for sustainable private label diapers.
4. Retail Customer Connection Program: Soft N Dry provides new retail customers and ongoing marketing support to OEMs and diaper manufacturers to supply finished products.

“econoLiite Core™ is our innovative response to the increasing demand for affordable, EUDR compliant, high margin private label diapers in the very important discounter segment in Europe and the UK,” said Matthew Keddy. “As the market moves towards tree-free diaper products, we are committed to providing solutions that meet the needs of both consumers, discounters and OEM diaper manufacturers. Our new econoLiite Core™ technology ensures that retailers, manufacturers and consumers alike can participate in the TreeFree Diaper™ era and an environmentally conscious future where costs fall and performance increases – that 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. With its proprietary ecoLiite Core™ and econoLiite Core™ technology, Soft N Dry delivers superior product performance and sustainability to commercial manufacturing and retail customers in North America, Latin America, the United Kingdom and Europe, outperforming traditional wood-based materials in the new TreeFree Diaper™ category.

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

Soft N Dry Diapers Corp.

40 King St W, 42nd Floor Toronto, Ontario, Canada M5H 3Y2

Tel.: +1 647 237 7744

Email: press@softndrycorp.com

Forward-looking statements

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This news release contains certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities legislation. All statements in this news release, other than statements of historical fact, including statements regarding future estimates, plans, objectives, schedules, assumptions or expectations of future performance, including the terms of the proposed transaction and future developments and the business and operations of the "Resulting Issuer" following 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 "expects" 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 key assumptions and analyses made by the Company and the opinions and estimates of management as of the date of this press release, including the assumption that the terms of the proposed transaction will be consistent with management's expectations and that future developments, and the business and operations of the "resulting issuer" following the proposed transaction will proceed as management anticipates. 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 Company to be materially different from those expressed or implied by such forward-looking information. Important factors that could cause actual results to vary include, among others, that the terms of the proposed transaction will not be consistent with management's expectations or will not be completed at all; the terms of the proposed financing will not be consistent with management's expectations or will not be completed at all; and future developments, and the business and operations of the "resulting issuer" following the proposed transaction will not be as management anticipated. Although management of the Company 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 expected, 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 Company undertakes no obligation to update any forward-looking statements, forward-looking information or financial projections incorporated herein by reference, except in accordance with applicable securities laws.

SOURCE: Soft N Dry Diapers Corp.