Mr. Luigi Fusi reports

LOOP ENERGY AND DRABPOL SELECTED BY POLISH ELECTRIC BUS MANUFACTURER ARP E-VEHICLES FOR SUPPLY OF HYDROGEN FUEL CELL SYSTEMS

Polish electric bus manufacturer ARP E-Vehicles has selected Loop Energy Inc.'s T605 fuel cell system for its new hydrogen electric bus platform.

This announcement marks Loop Energy's third win with European bus manufacturers, and the sixth time globally. With this selection, Loop Energy is now a fuel cell provider of choice to fuel cell electric bus manufacturers addressing what is estimated to be an up to 12,000-unit-per-year serviceable market opportunity across Korea, Australia and Europe.

Under the agreement, Loop Energy's 60-kilowatt fuel cell system will be integrated into ARP E-Vehicles' new 12-metre hydrogen-electric bus designed for municipal transit service market in Europe. Anticipated to take place in Q4 2023, delivery of the first T605 60-kilowatt fuel cell unit to ARP E-Vehicles will constitute the first deployment of Loop Energy's new product line designed for rooftop mounting, thus specifically catering to the European bus market.

Local support was an important requirement for ARP E-Vehicles in the tender process, and Loop Energy's partnership with Drabpol in Poland was key to ARP E-Vehicles selection. The T605 system also integrates Loop Energy's eFlow technology to offer industry-leading fuel efficiency, another leading factor in ARP's requirements. ARP E-Vehicles expects completion of its first hydrogen-electric bus in the fourth quarter of 2023, and for commercial sales to begin in 2024.

Headquartered in Poland, Drabpol offers high-level technical support, design, implementation and market development as a value-added reseller for numerous global brands in Poland, and is well positioned as a value-added supplier within dominant Polish bus manufacturing sector that supplies a significant percentage of Europe's bus market. Drabpol and Loop Energy entered into the value-added distribution agreement for Poland in 2022.

Loop Energy vice-president of sales and business development for Europe, Middle East, Africa and Russia, Luigi Fusi, said: "We are excited that ARP E-Vehicles has selected Loop Energy, further validating our products in Europe's significant bus sector. We are pleased to be working with Drabpol to facilitate our market development in Poland -- the hub for bus manufacturing in Europe. This announcement is yet another excellent example of Loop Energy's partnerships enabling our expansion into different markets around the world."

"In our meetings with ARP E-Vehicles, it was evident that the customer recognized Loop Energy offers them an advantage in deployment, operation, ease of integration, durability and reliability, and that last part is particularly important since the tender stipulations in this part of Europe includes provisions for long-term operation," said Michal Sitek, HQ managing director and chief of research and development at Drabpol. "Combined with Drabpol's educated and highly trained engineers to provide direct support, we are able to create a compelling product offering for ARP E-Vehicles."

"By 2028, bus manufacturers must fulfill the obligation within the EU for 30 per cent of public transport to be zero emissions. With Poland being the largest European producer of electric buses in Europe, we will see significant growth in the coming years," said Piotr Sladowski, president of the board at ARP E-Vehicles. "Working with Drabpol and Loop Energy will allow us to secure a technological advantage and scale production capacity of hydrogen-electric buses."

About Loop Energy Inc.

Loop Energy is a leading designer and manufacturer of fuel cell systems targeted for the electrification of commercial vehicles, including light commercial vehicles, transit buses, and medium and heavy-duty trucks. Loop Energy's products feature the company's proprietary eFlow technology in the fuel cell stack's bipolar plates. eFlow is designed to enable commercial customers to achieve performance maximization and cost minimization. Loop Energy works with original equipment manufacturers and major vehicle subsystem suppliers to enable the production of hydrogen fuel cell electric vehicles.

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