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Hybrid Coating Technologies Newsletter 1 st Quarter 2018 - Issue No. 3 Dear Shareholder: I hope you are enjoying the end-of-year holidays. 2017 has been a year of building for Hybrid Coating Technologies. In particular, we have spent a tremendous amount of effort in improving our product offering and strengthening our manufacturing, quality control and delivery process here in the United States. We have also established new toll manufacturing in Europe where we hope to begin producing in the first quarter of 2018. In 2017, we also made great strides in increasing our sales in the U.S. Our distributor, Industrial Finishes, has been selling our coatings products through multiple sales channels including directly through the contractor supply retail store, White Cap. This has helped to significantly increase our sales from approximately .5 tons per month at the beginning of the year to 7 tons per month in December. These increased sales figures will be reflected in HCT’s quarterly and annual financial filings with the SEC, which it will make its best effort to submit by the end of the first quarter of 2018. HCT is now in discussions with multiple potential new clients who plan on using our hardeners to manufacture their own coatings in the US as well as in Europe. We hope to begin selling to the first of these potential clients in the first quarter of 2018. In regards to the company’s foam development, HCT is now in the initial stages of a joint development agreement with a European company to jointly create a new zero isocyanate semi-rigid foam for global distribution. Lastly, HCT will have a booth at the World of Concrete trade show in Las Vegas, Nevada at the Las Vegas Convention Center from January 23-26, 2018 (booth #O40718). We are excited about the launch of several new products (see the Sneak Preview below) and coating systems that will be on display at our booth. Attending will be our Director of Marketing and Sales, Darin Nellis; our Director of Operations, Cyril Jay-Rayon; and our Senior Technical Director, Scott Kummer as well as myself. I would like to encourage all investors to come to Las Vegas and stop by our booth to meet our team during the show. Warm wishes for a prosperous 2018! Sincerely, Joseph Kristul Chairman & CEO, Hybrid Coating Technologies

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Page 1: Hybrid Coating Technologies Newsletter 3.2 (1)hybridcoatingtech.com/pdf/Newsletter_Issue_3-1st_Qtr...Hybrid Coating Technologies Newsletter 1st Quarter 2018 - Issue No. 3 Dear Shareholder:

HybridCoatingTechnologiesNewsletter1stQuarter2018-IssueNo.3DearShareholder:Ihopeyouareenjoyingtheend-of-yearholidays.2017hasbeenayearofbuildingforHybridCoatingTechnologies.Inparticular,wehavespentatremendousamountofeffortinimprovingourproductofferingandstrengtheningourmanufacturing,qualitycontrolanddeliveryprocesshereintheUnitedStates.WehavealsoestablishednewtollmanufacturinginEuropewherewehopetobeginproducinginthefirstquarterof2018.In2017,wealsomadegreatstridesinincreasingoursalesintheU.S.Ourdistributor,IndustrialFinishes,hasbeensellingourcoatingsproductsthroughmultiplesaleschannelsincludingdirectlythroughthecontractorsupplyretailstore,WhiteCap.Thishashelpedtosignificantlyincreaseoursalesfromapproximately.5tonspermonthatthebeginningoftheyearto7tonspermonthinDecember.TheseincreasedsalesfigureswillbereflectedinHCT’squarterlyandannualfinancialfilingswiththeSEC,whichitwillmakeitsbestefforttosubmitbytheendofthefirstquarterof2018.HCTisnowindiscussionswithmultiplepotentialnewclientswhoplanonusingourhardenerstomanufacturetheirowncoatingsintheUSaswellasinEurope.Wehopetobeginsellingtothefirstofthesepotentialclientsinthefirstquarterof2018.Inregardstothecompany’sfoamdevelopment,HCTisnowintheinitialstagesofajointdevelopmentagreementwithaEuropeancompanytojointlycreateanewzeroisocyanatesemi-rigidfoamforglobaldistribution.Lastly,HCTwillhaveaboothattheWorldofConcretetradeshowinLasVegas,NevadaattheLasVegasConventionCenterfromJanuary23-26,2018(booth#O40718).Weareexcitedaboutthelaunchofseveralnewproducts(seetheSneakPreviewbelow)andcoatingsystemsthatwillbeondisplayatourbooth.AttendingwillbeourDirectorofMarketingandSales,DarinNellis;ourDirectorofOperations,CyrilJay-Rayon;andourSeniorTechnicalDirector,ScottKummeraswellasmyself.IwouldliketoencourageallinvestorstocometoLasVegasandstopbyourboothtomeetourteamduringtheshow.Warmwishesforaprosperous2018!Sincerely,

JosephKristulChairman&CEO,HybridCoatingTechnologies

Page 2: Hybrid Coating Technologies Newsletter 3.2 (1)hybridcoatingtech.com/pdf/Newsletter_Issue_3-1st_Qtr...Hybrid Coating Technologies Newsletter 1st Quarter 2018 - Issue No. 3 Dear Shareholder:

WorldofConcreteProductLaunchSneakPreview

DecorativeTerrazzo-GREENPOLYURETHANE™EPOXYCONCRETE(GPEC™)Description:GPEC™isanewmonolithicepoxy-urethaneconcreteproductdevelopedbyHybridCoatingTechnologiesthathasmanytimesthestrengthofastandardconcreteandalsogreaterstrengththanapolymer(urethane)concrete.Polymerconcreteshavebecomeverypopularfortheirexceptionaldurabilityoverstandardconcreteandtheirabilitytodryquickly.GPEC™improvesthedurabilityofpolymerconcrete.Inaddition,whereaspolymerconcretelookssynthetic,GPEC™lookslikeanaturalconcreteanditcanbepolished.

Standardconcreteismixedwithwater,whichevaporatesduringcuring.Thiscreateshydrolysis,whichoftencausesmicrofracturinginconcreteafterithascured.Micro-fracturing,inturn,demandsexpensiveconcreterepairworkoverthelifeoftheconcrete.Instead,applicatorscanuseGPEC™,whichwillnotmicro-fractureduetotheepoxyandurethanepropertiesbuiltintotheproduct,whichalsodramaticallyincreasesitswaterandchemicalresistance.TheproductisalsolowimpactonhumanhealthandtheenvironmentduetoitszeroVOC,zeroisocyanatesformulation.

Applications:GPEC™isbestusedforresurfacingdamagedconcreteorfordesigneroverlays.

GPEC™canrepaireventhemostdamagedconcreteinanycommercialorindustrialapplicationssuchaswarehouses,supermarkets,stadiums,train/busstations,etc.Itcanbeusedtofillcracks,spallsandothervoidsindamagedconcrete.Itcurestobeharderandmoredurablethantheconcreteitselfandalsoblendsinwiththenaturalcolorandtextureofstandardconcrete.

GPEC™canalsobeusedasadesignerfinishontopofaconcretesubstrateforapolishedconcretelookorasafilledorterrazzosystemwithaggregatemixedin.Thissystemisoftenusedindecorativeconcreteapplicationssuchashotellobbies,airportsandotherhospitalityvenues.

CommercialStatus:GPEC™isnowinitsfinalstageoffieldandindependentlabpropertytesting.Theproductisprojectedtobecommercializedinthefirstquarterof2018.


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