Ms. Hamutal Yitzhak reports

ELSE NUTRITION ADDS NEW PRODUCTION FACILITY, STARTS COMMERCIAL PRODUCTION

Else Nutrition Holdings Inc. has started commercial production at a new U.S. facility in the Midwest, which will be able to support the company's manufacturing demand in the coming years in North America. The new U.S. production facility will lower costs while improving product quality.

Else Nutrition completed production tests and scale-up in July and ran the first commercial production of its lead product, Toddler Organic, in August. In the coming months, the company intends to complete trials for the rest of its products in North America and enter a long-term supply agreement.

The significant cost reduction will start impacting immediately the cash flow and the company's cost of goods sold toward the end of 2023 as inventory from the previous plant is depleted.

The quality of the produced product has also improved at the new facility, making the product easier to package and dissolve when mixed with water.

"I am very happy to announce this new production facility," said Hamutal Yitzhak, chief executive officer and co-founder of Else Nutrition. "It materially increases our manufacturing capacity to a level that will support significant growth in the coming years while reducing our COGS and improving the quality of the product. It secures our ability to supply the current and anticipated increase in demand for our products and will positively impact our COGS significantly."

About Else Nutrition Holdings Inc.

Else Nutrition (Toronto Stock Exchange: BABY, OTCQX: BABYF and Frankfurt Stock Exchange: 0YL) is a food and nutrition company in the international expansion stage focused on developing innovative, clean and plant-based food and nutrition products for infants, toddlers, children and adults. Its revolutionary, plant-based, non-soy formula is a clean-ingredient alternative to dairy-based formulas. Since launching its plant-based complete nutrition for toddlers, made of whole foods, almonds, buckwheat and tapioca, the brand has received thousands of powerful testimonials and reviews from parents, gained national retailer support and achieved rapid sales growth.

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