Aqua Bio Technology — Earnings Release 2017

Apr 24, 2018

Aqua Bio Technology - Annual Report 2017 and Interim report 2017

Aqua Bio Technology - Annual Report 2017 and Interim report 2017

Aqua Bio Technology ASA (ABT) reports an operating loss of NOK -14.9 million in

2017, against a profit of NOK 2.9 million in 2016. The financial results were

significantly affected by the dispute with a former US customer which is now

resolved. Total costs related to the dispute were approximately NOK 12 million

in 2017.

"2017 was a challenging year for us predominantly as a result of major costs

incurred in connection with the dispute which had a significant negative impact

on our financial results. On the positive side, however, we signed commercial

agreements during 2017 which, amongst other things, gave the company exclusive

rights for the Moana and Cuvget brands in the EMEA region (Europe, Middle East,

Africa). We have already established commercial operations in the region and

look forward to extending the commercial reach throughout 2018, says Arvid

Lindberg," CEO of Aqua Bio Technology.

In parallel to the efforts needed to handle the dispute in 2017, the company has

implemented a more diversified business model with the addition of the Moana and

Cuvget brands that gives ABT new opportunities going forward.

"During 2017 we have completed the third phase of the revised ABT business model

which means that we now also market and sell end products directly to the

consumer market. In addition to develop and market ingredients for the cosmetics

industry, the expansion of the business model with finished goods gives us

another leg in the industry and we feel optimistic about future opportunities,"

said Lindberg.

By 2018, Aqua Bio Technology has a broader platform than before. Four new

cosmetic ingredients are ready or in the development phase for the industry as

well as two branded cosmetic lines that are being commercialized directly to the

consumers. A common denominator for ABT's business proposition is to be natural

and sustainable.

"Traditional active substances, which may have adverse effects on both consumer

health and the environment, are being abandoned by the industry. This applies

both from a regulatory point of view and not the least in terms of consumer

attitudes and awareness. Thus, ABT is in the midst of this "green shift»," says

Arvid Lindberg.

For further information, please contact CEO of Aqua Bio Technology, Arvid

Lindberg, tel. +47 982 45 410.

Aqua Bio Technology (ABT) has launched several cosmetic ingredients being used

in skin care products globally. Skin care is the fastest growing segment in the

cosmetics industry, where ABTs ingredients have established a foothold. In

addition to ingredients ABT also commercializes new technologies/skin care

products through in-licensing agreements with third parties. Aqua Bio Technology

is listed on Oslo Axess.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.