ALUULA and Aqua Dynamics Secure Supply of ALUULA's High Performance Materials

Victoria, British Columbia--(Newsfile Corp. - October 22, 2025) - ALUULA Composites .Inc. (TSXV: AUUA) ("ALUULA" or the "Company") has entered into an agreement with Aqua Dynamics (Pvt) Limited ("Aqua Dynamics"), one of ALUULA's largest customers and one of the world's leading action sports manufacturers, ensuring a secure and timely supply of ALUULA's materials to Aqua Dynamics. By updating some of the core terms of their existing and positive working relationship, this agreement, executed on October 21^st 2025, enables ALUULA to preplan input material ordering, production schedules, and shipments while guaranteeing Aqua Dynamics secured deliveries throughout the year.

Aqua Dynamics, established in 1988 and located in Negombo, Sri Lanka, is one of the world's leading manufacturers of action sports products, including windsurfing sails, kites, paragliders, yacht sails, tents, and accessories, all produced at its high-tech, 40,000 m² facility.

"We have worked with ALUULA materials since 2020 and have seen the growing interest from our windsports brand partners and beyond. With this increasing interest, it became important for us to evolve our working relationship with ALUULA to ensure our customers have access to the most innovative materials throughout the year, helping them deliver outstanding products while keeping sustainability front and center," said Frank Ulmer, Managing Director at Aqua Dynamics.

"We commend Aqua Dynamics for being a leader in their industry by securing a guaranteed supply of ALUULA's materials for their customers throughout the year. Every committed purchase enables us to pre-plan input materials and production time in advance. This foresight helps keep our production smooth and ensures we deliver quality products on time, as the demands on our capacity increase," said Sage Berryman, CEO and President of ALUULA. The agreement is an irrevocable purchase order that covers a committed annual volume and revises payment terms.

Partnerships power innovation

ALUULA's history in windsports shows what's possible when partnerships drive innovation. Deepening the relationship with Aqua Dynamics opens opportunities in new markets as they expand their product portfolio, including shelters and wind power. These types of partnerships are central to ALUULA's growth- they're not just production sites, but collaborative hubs where innovation and new manufacturing and construction techniques come to life, enabled by ALUULA's materials.

ALUULA's composite materials utilize an ultra-high molecular weight polyethylene fiber core, which is known to have a strength-to-weight ratio approximately 8-15 times greater than steel for equivalent weight. They are recycle-ready, made with a patented, adhesive-free manufacturing process that offers exceptional strength-to-weight ratios while being waterproof, UV-resistant, and designed for recyclability. These composite materials leverage durability and sustainability, marking a significant step forward for eco-conscious structural design.

About ALUULA Composites

ALUULA is an ultra-light, high performance and recycle-ready composite materials brand that enhances the performance of outdoor gear. Proudly owned and manufactured on the Canadian west coast, ALUULA's innovation is driven by a deep understanding that equipment does not need to sacrifice performance for sustainability. ALUULA's materials are known for their unique construction capabilities and their ability to make products lighter, stronger, and more sustainable.

aluula.com | TSXV: AUUA

ALUULA's Brand Partners

The term "brand partners" does not refer to formal partnerships with our customers. The term refers to marketing relationships with our customers who use ALUULA's technology as a brand ingredient in their products.

TSX Venture Exchange

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

The information in this news release includes certain information and statements about management's view of future events, expectations, plans, and prospects that constitute forward-looking statements, including, but not limited to: interest in ALUULA's windsport brand partners, the ability to deliver quality products on time, and the irrevocable purchase order with Aqua Dynamics. These statements are based on assumptions subject to significant risks and uncertainties as described in the Company's management discussion and analysis. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements, or performance may differ materially from those anticipated and indicated by these forward-looking statements. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statement will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.

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