AirBoss Announces Husky Long-Term Contract Extension Valued at up to US$35.6 Million

Newmarket, ON – September 28, 2020 - AirBoss of America Corp. (TSX: BOS) (the "Company" or "AirBoss") today announced that AirBoss Defense Group ("ADG") has been awarded a two-year extension to the Husky Long-Term Contract previously awarded by Army Contracting Command Warren to Critical Solutions International, Inc. (“CSI”) in March 2017.

The original award was for the Husky 2G Protected Payload Delivery Vehicle ("Husky 2G") and its associated route clearance payloads. The transaction merging AirBoss’ defense business with CSI to form ADG closed on January 1, 2020.

"The ADG transaction helped us assemble a broad survivability platform with an array of both established and emerging CBRNE solutions," said Chris Bitsakakis, President and Chief Operating Officer of AirBoss. "Contracts of this nature are the result of CSI’s strong relationships with their existing customers and speak to the longevity and applicability of the solutions, which we expect to contribute a more stable underlying revenue stream over a multi-year period."

This contract extension provides Foreign Military Sales ("FMS") customers an enduring mechanism to procure protected payloads, spare parts and training in support of the Husky 2G vehicle system.

Fiscal year 2020 and 2021 Pseudo-Foreign Military Sales funds in the amount of $35.6 million were obligated at the time of the award and account for anticipated volumes of Husky 2G support equipment to be procured over the extended period of performance.

Work for this contract will be performed out of the company’s Charleston, South Carolina location with a period of performance ending September 2022.

Under the base contract, awarded in 2017 and valued at US$132 million, CSI successfully delivered 41 Husky vehicle systems with associated protected payloads including Interrogation Arms, Ground Penetrating Radar, 360-degree cameras, Self-Defense Remote Weapon Stations and RPG Nets.

Husky 2G vehicles have been delivered to multiple FMS customers under this contract supporting route clearance capability development in Egypt, Saudi Arabia and Jordan. In addition, U.S. sponsored Building Partner Capacity programs have been leveraged on this contract to provide Husky 2G’s with protected payloads to Ukraine and Iraq as a part of the Global Train and Equip and Counter-ISIS Train and Equip Fund programs.

The Husky 2G is Vehicle Mounted Mine Detection system deploying a range of radar and sensor systems for countermine and non-conventional explosive detection on a blast-survivable, mission configurable vehicle platform.

To date ADG has deployed more than 1,500 Husky systems globally.

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, Nuclear and Explosive ("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  for more information.

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

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