Mr. John Budreski reports

ENWAVE PROVIDES CORPORATE PROGRESS UPDATE

EnWave Corp. has provided an update on four of its key business areas.

Patent portfolio for REV technology

EnWave's royalty business model incorporates a grant of exclusive use of REV technology to its commercial licensees that follows from the strength of the company's intellectual property portfolio. The company strives to continuously develop new technological innovations, both platform and product-related, with the goal of creating additional value for EnWave shareholders, and for its current and future licensees.

EnWave holds or has filed 17 separate patents that protect both its REV technology and specific methods of use. Each of the nine patents that have been granted has been approved in at least two major global jurisdictions. Since June 30, 2013, nine additional new geographic patent approvals have been allowed, including patent approvals for the company's nutraREV, bioREV, powderREV and quantaREV platforms. EnWave's patent suite now consists of 25 patent approvals protecting its REV technology in the United States, Canada, the European Union, China, Hong Kong, New Zealand, Chile and Australia. The company currently has an additional 46 patent approvals pending in multiple geographic jurisdictions that now also include Brazil, India, Japan and Mexico.

EnWave's nutraREV platform and method of use patent was approved in Australia, Canada, China, Hong Kong, New Zealand and Chile during the period of October, 2011, to April, 2014, broadening the coverage of EnWave's most commercialized platform throughout a total of six countries. The bioREV platform and method of use patent was approved in the U.S. and Canada in May and July, 2014, respectively. Furthermore, the patent protecting both the powderREV and quantaREV method of use for dehydrating organic materials was granted in China in July, 2014. The patent protecting the method for producing hydrocolloid foams using REV technology has been granted in Australia, Canada, China, Chile, the U.S. and the European Union. This patent can protect the drying of many products across much of EnWave's major addressable markets including the food, pharmaceutical and industrial areas. Lastly, the patent protecting the method for dehydrating vaccines using vacuum microwave technology was approved in Canada, China and Hong Kong, and last month was allowed in the U.S., providing more value to EnWave's patent suite as it continues to work with its three pharmaceutical partners.

EnWave's continuous pursuit of new patents, or new jurisdictions for existing patents, serves to further strengthen the patent portfolio and the royalty business model.

Hans Binder Maschinenbau GmbH

Binder's contracted machine order book for fiscal year 2014 now totals over five million euros ($7-million) in value. This is a material improvement from an order book of less than 140,000 euros ($200,000) at the time of EnWave's acquisition of Binder in October, 2012. The improvement is a result of Binder's management team expanding its sales efforts and focusing on restoring the order book to more historically traditional levels. The management team continues to negotiate and pursue prospective new contracts, and to further build this order book for the remainder of 2014 and for 2015. Binder is now positioned to be cash positive. Binder will continue to be a valuable vehicle for future European sales of EnWave's REV technology, and will focus its own sales efforts on securing further conventional air dryer projects.

NutraDried LLP

NutraDried is gaining positive momentum following the successful start-up and operation of its 100-kilowatt nutraREV plant in Ferndale, Wash. NutraDried's first sale, in October, 2013, was to DPI Specialty Foods, which places Moon Cheese in a number retail outlets including Fred Meyer and QFC stores located in the Pacific Northwest. Since that initial sale, the number of distributors and end purchasers that supply or sell NutraDried's Moon Cheese has grown to 18. While this sales growth is in its early stages, the trend in the number of purchasers and the volumes purchased continues to be quite favourable.

In September, EnWave announced the receipt of the first private-label order for 12,000 pounds of NutraDried's 100-per-cent natural, crunchy cheese snack product. This first order is expected to enter the major private-label customer's distribution system over the next two months. While these product trials have not commenced, NutraDried has received a second order for an additional 13,000 pounds of product. NutraDried expects to receive early indicators pertaining to the initial launch by early 2015, which will be more telling of the near-term impact this account will have on sales.

EnWave partners update

EnWave is currently working with over 40 companies at varying stages of the sales process. Many are testing the merits of REV technology for a diverse range of applications that include food, pharmaceutical and industrial end products. Of the companies that are evaluating the REV technology, several commercial licence opportunities are under negotiation, and the company anticipates a number of decision points to occur before the end of the 2014 calendar year.

EnWave currently has a commercial licence and royalty agreement with a division of Bonduelle, the world's leading processed vegetable producer. This partner relationship and business development are advancing according to expectations. Fittingly, Bonduelle is continuing its product refinement with an 18-kilowatt quantaREV machine and is prepared to receive a leased commercial-scale 120-kilowatt quantaREV machine. EnWave is in the latter stages of completing the construction of this machine for delivery to Bonduelle by the end of 2014. Commissioning of this machine will enable commercial production in 2015 and validate the quantaREV platform on a larger scale. Success on this commercial scale is expected to lead to a further and more sizable deployment of EnWave's quantaREV technology.

Hormel Foods and EnWave are at the latter stages of completing extensive product development with a joint desire to move to product launch in the coming months.

An eight-kilowatt powderREV machine for Sutro Biopharma is in the testing phase. Once completed, Sutro will be conducting detailed trials that are expected to be completed by mid-2015.

EnWave is increasing its resource dedication to identifying, collaborating with and commercially contracting new partners. This will be a continuing effort. The awareness of EnWave's technology is increasing, and the early successes in commercialization are becoming apparent and EnWave will continue to capitalize on this trend.

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