Mr. Tomer Bar Meir reports

ESHBAL LAUNCHES LOCAL PRODUCTION OF ITS GLUTEN-FREE PITA IN NORTH AMERICA - FIRST SHIPMENT ALREADY SOLD

Eshbal Functional Food Inc. has completed its first North American production run of its signature gluten-free pita bread.

The production, completed in February in partnership with Queen Street Bakery, marks an important operational milestone as the company establishes local manufacturing capabilities to support the initial stages of its commercial activity in North America. Working closely together, the QSB and Eshbal teams were able to reproduce the distinctive taste of Eshbal's gluten-free pita -- including the flexibility, texture and quality that define the product.

Initial production already sold

Importantly, most of this initial production batch has already been sold to a foodservice customer in northern California, a restaurant group operating several locations across the region.

This initial order represents the first delivery of Eshbal's gluten-free pita bread produced locally in North America and provides an early indication of interest in a premium product, while also highlighting the company's intention to serve multiple sales channels across North America, including foodservice alongside retail and on-line distribution.

Next production runs

Additional production cycles are planned in the coming weeks and are expected to include a greater variety of Eshbal's specialty products. Management will be closely evaluating these production cycles fitting the right product with the right potential retail partners. Inventory preparation for the company's developing on-line sales channels is also under way.

Alongside Eshbal's core gluten-free pita products, the company's expanding North American portfolio -- including Barili, Dare to Be Different Foods and Gluten Free Nation -- is expected to be distributed across multiple sales channels in North America, including retail, foodservice and on-line platforms.

About Eshbal Functional Food Inc.

Eshbal is a publicly traded foodtech company focused on building a scalable platform of gluten-free and health-oriented food brands across retail, foodservice and on-line channels in North America.

Since listing on the TSX Venture Exchange in 2025, the company has been executing a disciplined brand-focused roll-up strategy targeting established and emerging better-for-you brands with existing market presence and growth potential. Eshbal's model centre on acquiring controlling interests in complementary brands and integrating them into a centralized operating platform designed to enhance distribution reach, improve operational efficiency and support margin expansion.

Key execution milestones include securing U.S. brokerage representation to expand retail distribution, launching localized North American production in partnership with Queen Street Bakery, completing the acquisition of Gluten Free Nation and acquiring a majority interest in Dare to Be Different Foods. These transactions expand Eshbal's brand portfolio and provide immediate incremental revenue while strengthening its distribution and production footprint. (Eshbal maintains active digital engagement and investor communications through its corporate website and official social media channels.)

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