CEM Specialties (CEMS) continues to expand with its USA Customer (the "Customer") to design and integrate advanced emission technology in order to monitor ethylene oxide in real-time. Following the press releases dated February 13th, 2023, and August 2nd, 2023, CEMS has received additional orders for this new growth market, in support of its Customer, totaling approximately CAD 1 Million. Ethylene Oxide Emissions.

Ethylene oxide (EtO or EO) is widely used across various industries for the production of solvents, detergents, adhesives, antifreeze, textiles, and pharmaceuticals. Ethylene oxide is also present in sterility for cosmetics, fumigants, and hospitals for sterility of surgical equipment. The EPA (Environmental Protection Agency) is proposing new health protections to reduce exposure to EtO including more stringent air emissions standards and additional protections for workers.

The ability to continuously monitor and quantify ethylene oxide is central to eliminating sources and reducing long-term exposure to this hazardous air pollutant. Based on current supply chains and lead times the new orders are anticipated to add to revenues in Fourth Quarter, 2023 and First Quarter, 2024. The Customer will not be named for industry competitive reasons.