AGREEMENT WITH PEGASUS HOME FASHIONS, MAJOR PILLOW PRODUCER FOR SIX US TOP TIER RETAILERS

Initial Agreement Representing US$10M+ in Ongoing Annual Revenue to Alexium will Enable Pegasus’ New Cool-Touch Pillow Sales to Mass Brand Retailers across North America

Perth, Australia and Greer, South Carolina: Alexium International Group Limited (“Alexium,” “the Company”) (ASX:AJX, OTC QX:AXXIY) has signed an initial agreement with New York-based Pegasus Home Fashions Inc. for Alexium to supply Alexicool™ chemistry to Pegasus Home Fashions for the Bedding Pillows Market across the USA. The parties intend to formalize an exclusive arrangement and to collaboratively expand the agreement beyond pillows as well as add additional geographic markets where mutually beneficial. This initial agreement is a precursor to a more formal contract containing expanded terms.

Pegasus Home Fashions is a New York based top-tier supplier of pillows to many different retail channels of distribution including big box retailers. The initial agreement represents ongoing annual Alexicool™ chemical sales of upwards of $10M US. Initial chemical formulations of Alexicool™ to Pegasus Home Fashions have already been shipped and applied to pillows for consumer use. Over the first half of 2017, Alexium will ramp up its sales to Pegasus Home Fashions as additional components of the supply chain are put into place. In addition, Pegasus Home Fashions is working to finalize agreements to sell its Cool Touch pillows to three of the largest commercial retailers in the USA, which would place Alexicool™-treated Pegasus branded pillows on the shelves of over 6,500 locations.

Lou Casali, Head of Sales for Pegasus Home Fashions, says “this Agreement, and the exclusivity terms for the Alexicool™ technology which will follow, allows Pegasus to negotiate with our customers from a position of strength. The Alexicool™ technology has proven to be the most efficient cooling technology on the market and gives us the ability to supply the mass market at price points anyone can afford.”

In addition to pillows, Pegasus Home Fashions is a supplier of furniture protectors, pet beds, mattress pads, toppers and other protectors. Pegasus Home Fashions also has a licensing agreement for several product lines with the NFL and NBA. Alexium and Pegasus Home Fashions have agreed to immediately begin adapting the Alexicool™ formulations to supply Cool Touch versions of those other products for the retail market.

“The speed at which this agreement progressed from initial discussions on potential product lines is a clear testament to the vision and drive of Pegasus Home Furnishings owner, Carmine Spinella, the strength of our Alexicool™ product, and of Alexium’s exquisite knowledge of phase change material formulations. Alexium looks forward to continuing deliveries of chemistry on this major account and working with Carmine, Lou and the Pegasus team to bring more Cool-Touch products to market.” said Alexium President, Dirk Van Hyning.
This strong start in 2017, with a US national brand name that has extensive reach into multiple conglomerate retailers sets Alexium up to be a significant supplier in the specialty chemicals market.

“The speed at which this agreement progressed from initial discussions on potential product lines is a clear testament to the vision and drive of Pegasus Home Furnishings owner, Carmine Spinella, the strength of our Alexicool™ product, and of Alexium’s exquisite knowledge of phase change material formulations. Alexium looks forward to continuing deliveries of chemistry on this major account and working with Carmine, Lou and the Pegasus team to bring more Cool-Touch products to market.” said Alexium President, Dirk Van Hyning.