Mr. Kevin Callahan reports

PIONEERING TECHNOLOGY'S SMARTBURNER POISED FOR GROWTH VIA A NEW U.S. DISTRIBUTION AGREEMENT WITH MARKET LEADER

Pioneering Technology Corp. has entered an agreement with one of North America's largest national distributors and direct marketers of broad-line facilities maintenance, repair and operations products. This organization is now purchasing, warehousing, distributing and selling Pioneering's SmartBurner product throughout the United States. The organization has recently stocked the product in eight distribution centres across the country and is actively promoting the SmartBurner to its substantial customer base through its national sales organization. Product purchased to date is valued at approximately $630,000.

Approaching $2-billion in sales, this organization, now owned by one of the world's largest retailers, serves more than 175,000 customer locations and holds leading market positions in the institutional, multifamily housing and residential end-markets. This organization's broad and diverse customer base includes apartment complexes and property management companies, educational institutions, lodging, hospitals and health care facilities, government facilities, office buildings and building service contractors, professional contractors, and hardware retailers.

Pioneering chief executive officer Kevin Callahan said: "We are extremely happy with this new relationship. Their access to key decision makers and their reputation in multiresidential and institutional channels will have a significant positive impact on our ability to grow our business in these channels where cooking fires are a very dangerous and expensive problem. This new distributor/sales relationship brings large-scale channel expertise, customer relationships, logistics capabilities, and a large and dedicated sales force that will impact our SmartBurner business like few other organizations could."

High-growth opportunity

The partnership helps enhance one of the company's key strategic initiatives in 2016: to secure formal business relationships with large-scale U.S. distributors who have logistics, sales and marketing capabilities, and channel expertise, in the key channels where Pioneering's SmartBurner product is relevant and required. The relationship will provide Pioneering with opportunities to increase sales significantly in key market verticals where cooking fires are a problem and where this new partner has a large customer base and strong relationships with key decision makers.

Mr. Callahan added: "We will continue our focus on partnering with world-class distribution partners like this one to accelerate growth while continuing to help protect people and properties from the dangers of cooking fires. We remain committed to maximizing shareholder value as we execute on our key strategies for achieving growth in 2016 and beyond."

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