Montreal, Quebec--(Newsfile Corp. - October 6, 2026) - Supremex Inc. (TSX: SXP) ("Supremex" or the "Company"), a growing provider of paper-based packaging solutions and a leading North American manufacturer and marketer of envelopes, today provided an update on the expected impact of tariffs on its operations and announced a restructuring plan designed to protect profitability, enhance efficiency and accelerate the Company's ongoing transformation into a diversified North American leader in paper-based packaging.

Tariff Impact and Mitigation

Based on tariff measures currently in effect and management's current assessment of trade flows, the Company estimates that tariffs will have a net impact on its operating earnings, before taxes, of between $10.0 million and $12.0 million on an annualized basis, after giving effect to mitigation measures implemented to date, including commercial pricing actions, supply chain adjustments and the rebalancing of production across its North American manufacturing network, but excluding the restructuring plan discussed below. The Company continues to actively pursue additional mitigation alternatives with the objective of further reducing this impact. While management believes the current tariff environment will prove temporary, the Company is managing its operations - and has prepared these estimates - on the assumption that tariff measures remain in effect as currently enacted.

Restructuring Plan

In response to these conditions, Supremex has implemented a restructuring plan that builds on the Company's recent investments to permanently reduce its cost base with current market conditions. The plan involves the elimination of approximately 60 positions across the organization, representing approximately 6% of the Company's workforce, and comprises three components:

• Envelope network alignment: the consolidation of certain activities across the Company's Canadian and U.S. envelope locations into centres of excellence supporting multiple locations - bringing expertise together to improve consistency and operate more efficiently across the network.

• Folding carton consolidation: the transfer of folding carton production from the Company's Saint-Laurent, Quebec commercial print facility to its flagship folding carton facility in Lachine, Quebec. As a result, Supremex will reduce the square footage of its Saint-Laurent commercial print facility, lowering its fixed cost base.

• Deployment of technology: the accelerated deployment of technology across the business, including the modernization of core back-office processes- enabling a leaner, and more scalable support structure.

Once fully implemented, these initiatives are expected to generate annualized cost savings of approximately $5.7 million, with benefits beginning to materialize in the fourth quarter of 2026 and the full run-rate expected in the first quarter of 2027. In connection with the plan, the Company expects to record a restructuring charge of approximately $1.8 million before taxes, of which the majority is related to severance and other employee-related costs, in the fourth quarter of 2026. These actions do not alter the Company's growth strategy: Supremex continues to pursue targeted acquisitions in packaging, advance the integration of its recently acquired businesses, and invest in the capabilities that support its long-term transformation into a diversified North American leader in paper-based packaging.

Management Commentary

"The decision to reduce our workforce is the most difficult one a management team can make, and it is not one we make lightly," said Stewart Emerson, President and CEO of Supremex. "These colleagues have contributed to everything Supremex has built, and we are deeply grateful for their dedication and service. We are committed to treating every affected employee with fairness, respect and meaningful transition support. At the same time, the trade environment has introduced significant new costs, and we have a responsibility to act decisively to protect the long-term health of the business for our employees, customers and shareholders."

"These actions position Supremex to weather the storm - and we believe this storm, while fierce, is a passing one," added Mr. Emerson. "The investments we have made across the business now allow us to operate more efficiently without compromising the service and quality our customers expect - and these actions put that capability to work. Combined with our tariff mitigation measures, this plan is aimed at safeguarding our profitability and ensuring that when trade conditions normalize, Supremex will emerge leaner, stronger and better positioned to execute its growth strategy in paper-based packaging - creating lasting value for our shareholders."

Forward-Looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities laws, including (but not limited to) statements regarding the estimated net impact of tariffs on the Company's operating earnings, the Company's tariff mitigation measures and their expected effect, the expected annualized cost savings resulting from the restructuring plan, the expected restructuring charge, the timing of implementation of the plan and realization of its benefits, the consolidation of activities and facilities, and the future performance of Supremex, and similar statements or information concerning anticipated future results, circumstances, performance or expectations. Forward-looking information may include words such as anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, seek, should, strive, target and will.

The estimated net impact of tariffs and the expected annualized savings and restructuring charges constitute financial outlooks within the meaning of applicable Canadian securities laws and are provided for the purpose of assisting readers in understanding the expected effect of tariffs and of the restructuring plan on the Company's results. Readers are cautioned that such information may not be appropriate for other purposes.

Such forward-looking information reflects current assumptions, expectations and estimates of management and is based on information currently available to Supremex as at the date of this press release. Material assumptions underlying the forward-looking information in this press release include: tariff measures remaining in effect as currently enacted; management's current assessment of trade flows between the Company's Canadian and U.S. operations; current customer demand and volume levels; prevailing exchange rates; the implementation of the restructuring plan and of the mitigation measures on the expected timelines; severance and other employee-related costs being consistent with current estimates; and the absence of material offsetting cost increases. Such assumptions, expectations and estimates are further discussed throughout the MD&A for the year ended December 31, 2025, and in the Company's Annual Information Form dated March 27, 2026. Supremex cautions that such assumptions may not materialize and that changes in tariff or trade measures, economic uncertainty, downturns or recessions may render such assumptions, although believed reasonable at the time they were made, subject to greater uncertainty.

Forward-looking information is subject to certain risks and uncertainties and should not be read as a guarantee of future performance or results and actual results may differ materially from the conclusion, forecast or projection stated in such forward-looking information. These risks and uncertainties include but are not limited to the following: risk of partial or non-realization of the anticipated benefits from the restructuring plan and mitigation measures, decline in envelope consumption, growth and diversification strategy, key personnel, labour shortage, contributions to employee benefits plans, raw material price increases, operational disruption, cyber security and data protection, dependence on and loss of customer relationships, increase of competition, economic conditions and uncertainty, risk related to the international trade and tax environment (including tariffs, quotas and custom and other restrictions), exchange rate fluctuation, interest rate fluctuation, credit risks with respect to trade receivables, availability of capital, concerns about protection of the environment, potential risk of litigation and no guarantee to pay dividends. Such risks and uncertainties are discussed throughout the MD&A for the year ended December 31, 2025, and in the Company's Annual Information Form dated March 27, 2026, particularly in "Risk Factors". Consequently, the Company cannot guarantee that any forward-looking information will materialize. Readers should not place any undue reliance on such forward-looking information unless otherwise required by applicable securities legislation. The Company expressly disclaims any intention and assumes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.

The Management Discussion and Analysis and Financial Statements can be found on www.sedarplus.ca and on Supremex' website.

About Supremex

Supremex is a growing provider of paper-based packaging solutions and a leading North American manufacturer and marketer of envelopes. Supremex operates nine manufacturing facilities across four provinces in Canada and four manufacturing facilities in three states in the United States employing approximately 900 people, in each case, after giving effect to the restructuring plan. Supremex' extensive network allows it to efficiently manufacture and distribute envelope and packaging solutions designed to the specifications of major national and multinational corporations, direct mailers, resellers, government entities, SMEs and solutions providers.

For more information, please visit www.supremex.com.

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Source: Supremex Inc.