Mr. Vincent Wong reports

KONA BAY TECHNOLOGIES ANNOUNCES QUARTERLY FINANCIAL RESULTS AND PRIVATE PLACEMENT

Kona Bay Technologies Inc. has released its unaudited financial results for the quarter ended June 30, 2018. Results were prepared in accordance with international financial reporting standards.

                                          FINANCIAL HIGHLIGHTS

                                                 Three months ended June 30, 2018     Three months ended June 30, 2017

Sales                                                                     $50,785                              $31,681
Net income (loss) before other items                                     $(47,665)                            $(90,466)
Net income (loss) from continuing operations                             $(15,735)                            $(74,465)
Net income                                                               $(15,735)                            $(72,885)
Earnings (loss) per share from continuing operations                       $(0.00)                              $(0.02)

The unaudited consolidated financial statements and management's discussion and analysis for the quarter ended June 30, 2018, are available at SEDAR.

The company also announces a proposed private placement of up to 2.5 million units at a price of 12 cents per unit for gross proceeds of $300,000. Each unit will comprise one common share of the company and one common share purchase warrant entitling the holder to purchase one additional common share at 16 cents per share for a period of one year from the date of the issue.

The company intends to use the gross proceeds of the offering for general working capital. The offering is subject to the prior approval of the TSX Venture Exchange.

We seek Safe Harbor.