Pierrel S.p.A.: APPROVAL ON A VOLUNTARY BASIS OF THE INTERIM MANAGEMENT REPORT FOR THE PIERREL GROUP AND PIERREL S.P.A. AT 31 MARCH 2020

PRESS RELEASE

APPROVAL ON A VOLUNTARY BASIS OF THE INTERIM MANAGEMENT REPORT FOR THE PIERREL GROUP AND PIERREL S.P.A. AT 31 MARCH 2020

• ✓ Results at 31 March 2020 affected, both in terms of revenues and EBITDA, by the postponement in the first days of April 2020 of the shipment of some batches of Orabloc®, due to logistical problems due to the ongoing health emergency, but already recovered at the end of the first quarter of 2020, whose data are in line with both the results achieved by the Group at 30 April 2019 and the budget forecasts, which have been confirmed for the whole year 2020.

• ✓ Consolidated results at 31 March 2020:

  • ▪ Revenues of about € 4.1 million, showing a decrease of some 24% compared to 31 March 2019, when they were about € 5.4 million;

  • ▪ EBITDA positive for about € 0.5 million, showing a decrease of about 54% compared to 31

    March 2019, when it was positive for about € 1.0 million.

  • ▪ Positive EBIT for about € 0.2 million, of which about € 0.3 million for amortization, a decrease of some 70% compared to 31 March 2019, when it was positive for about € 0.7 million (of which about € 0.4 million for amortization);

  • ▪ Consolidated net loss of about € 0.1 million, in contrast to the consolidated net profit recorded at 31 March 2019 of about € 0.3 million;

  • ▪ Consolidated net financial debt of about € 6.9 million, in line with 31 December 2019, when it was about € 6.8 million;

  • ▪ Cash and cash equivalents of about € 5.8 million, showing an increase compared to 31 December 2019, when it was approximately € 5.5 million.

Capua, 14 May 2020 - The Board of Directors of Pierrel S.p.A. ("Pierrel" or "the Company") met today and revised and approved on a voluntary basis the Interim Management Report of the Pierrel Group and the Company at 31 March 2020, prepared in accordance with IAS/IFRS international accounting standards and not subject to legal audit.

The results recorded by the Company and its only subsidiary Pierrel Pharma S.r.l. with a sole shareholder ("Pierrel Pharma" and, together with the Company, the "Pierrel Group") in the first quarter of 2020 show a linear and positive trend in the Group's production and commercial activities despite the problems connected with the ongoing health emergency. The decrease in the value at 31 March 2020 of some of the Group's main economic and financial indicators is in fact mainly attributable to the postponement in the first days of April 2020 of the shipment of some batches of Orabloc® product, destined for the North American market, due to logistical problems deriving from the regulations adopted locally and in the world to tackle and contain the spread of the Covid-19 virus. However, these discrepancies were already recovered at the end of the first quarter of 2020, the data of which are in line both with the results achieved by the Group at 30 April 2019 and with the forecasts of the budget approved by the Company's Board of Directors on 26 April.

In detail, the Company and the Pierrel Group closed the first three months of 2020 with consolidated revenues of approximately € 4.1 million, showing a decrease of about 24% compared to the approximately € 5.4 million achieved in the corresponding period of 2019 and a positive consolidated EBITDA of about € 0.5 million, a worsening of about 54% compared to 31 march 2019, when it was positive for about € 1.0 million. The reduction of the main economic indicators (gross revenues and EBITDA) of the Company, both at consolidated level and stand alone, at 31 March 2020 compared to the corresponding data recorded in the same period of 2019 is attributable to the logistical problems highlighted above.

Here follows a brief description of the business performance and management results at 31 March 2020 of the individual divisions Contract Manufacturing - CMO, Pharma and Holding of the Pierrel Group.

The CMO Division recorded in the first three months of 2020: (a) total sales, gross of intercompany eliminations, of approximately € 4.5 million, a decrease of some 10% compared to the € 5.0 million recorded in the same period of 2019; and (b) a positive EBITDA, gross of intercompany eliminations, of approximately € 0.8 million, a decrease compared to the same period of 2019, when it was positive for approximately € 1.3 million.

The Pharma Division recorded in the first three months of 2020 total sales, gross of intercompany eliminations, of approximately € 2.1 million, a decrease of some 45% compared to the € 3.8 million recorded in the first three months of 2019; and a positive EBITDA of approximately € 0.3 million, a decrease of some 62% compared to the same period of 2019, when it was positive for approximately € 0.7 million for the reasons stated above.

The Holding Division, which does not generate revenues, recorded a negative EBITDA for the first three months of 2020 of some € 0.4 million, in line with the result at 31 March 2019, when it was a negative € 0.3 million.

Compared to the plan forecasts approved by the Board of Directors of the Company on 26 February 2020, the turnover and EBITDA data recorded by the CMO, Pharma and Holding Divisions as of 31 March 2020 bear the negative effects of the reasons in the premise that led to the turnover shift of approximately € 1 million in the first days of April.

The Pierrel Group recorded a positive EBIT (operating result) at 31 march 2020 of about € 0.2 million, after amortisation of around € 0.3 million, a decrease of some 70% on the figure of 31 March 2019, when it was positive for about € 0.7 million, after amortisation of around € 0.4 million.

In addition, it is noted that the Pierrel Group at 31 March 2020 recorded net financial expenses of about € 0.3 million (in line with the figure at 31 March 2019). This item also includes net notional financial income from discounting and from currency adjustment, totaling around € 0.2 milion, linked to the payable (stated in US dollars) still due from Pierrel to the American customer Dentsply International Inc. of around € 6.3 million at 31 March 2020, by way of interest and capital stock.

In light of the above and for the reasons briefly illustrated above, at 31 March 2020 the Pierrel Group recorded a consolidated net loss of approximately € 0.1 million, in contrast with the consolidated net profit recorded by the Group at 31 March 2019 equal to about € 0.3 million.

The net financial debt of the Pierrel Group at 31 March 2020, which includes a current financial debt of approximately € 2.1 million (approximately € 1.8 million at 31 December 2019), amounted to some € 6.9 million, in line with the figure at 31 December 2019, when it was about € 6.8 million.

The consolidated cash resources of the Pierrel Group at 31 March 2019 was about € 5.8 million, an increase compared to 31 December 2019, when it was about € 5.5 million, due to higher collections recorded in the quarter compared to 31 December 2019.

As of 31 March 2020, none of the Pierrel Group companies has issued bonds.

At 31 March 2020 the Pierrel Group's overdue debts to suppliers amounted to around € 1.1 million (around € 0.7 million at 31 December 2019), while those to Fonchim (supplementary pension fund for chemical and pharmaceutical workers) reduced to around € 0.138 million (compared to around € 0.169 million at 31

December 2019) due to payments made in line with the repayment plan announced by the Company.

During the first quarter of 2020, the consolidation scope of the Pierrel Group did not change significantly compared to the closing date of 2019.

With a provision dated 23 May 2019, the CONSOB ordered the cancellation of the Company from the "Black list", eliminating the monthly disclosure obligations relating to the economic-equity and financial situation of the Pierrel Group pursuant to art. 114, paragraph 5, of Legislative Decree no. 58/98, as subsequently amended and supplemented. With the same provision, CONSOB also requested the Company to includecertain specific information in the annual and interim financial reports of the Company (for further information, see press release of 23 May 2019 published on the Company's website and available atwww.pierrelgroup.com, section Investor Relations/Press/Press Releases). With reference to 31 March 2020, this information is contained in an annex to this press release and in a specific section of the Pierrel Group's interim report at 31 March 2020.

Results of Pierrel

At 31 March 2020 Pierrel recorded revenues of about € 4.5 million, a decrease of about 9% compared to about € 5.0 million of the corresponding period of 2019, and a positive EBITDA of about € 0.4 million, a decrease compared to 31 March 2019, when it was positive for about € 1.0 million.

The net financial position of the Company at 31 March 2020 was negative for about € 2.2 million, in line with the figure recorded at 31 December 2019.

In light of the foregoing, at 31 March 2020, after having recognised amortisation of € 0.3 million and net financial expenses of € 0.2 million, the Company posted a net loss of € 0.05 million, as opposed to the net profit recorded by the Company at 31 March 2019 of € 0.5 million, after recognition of amortisation of € 0.2 million and net financial expenses of € 0.3 million.

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Based on the results achieved by the Pierrel Group at 31 March 2020 and described in this press release and the data held by the Company, including the outlook for the coming months, during the same meeting the Pierrel Board of Directors confirmed the Pierrel Group's main economic and financial objectives for 2020 which, as already communicated to the market on 26 February, include: (a) consolidated gross revenues of about € 23.3 million; and (b) a positive consolidated EBITDA of about € 4.3 million.

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No significant events occurred during the first quarter of 2020 and subsequent to 31 March 2020.

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The Interim Report of the Pierrel Group and Company at 30 March 2020 is filed and available to the public on request, at the registered office of the Company in Capua (CE), Strada Statale Appia 7 bis 46/48 and at the head office of Borsa Italian S.p.A. and it will also be available in the Investor Relations/Financial Documents of the Company's website,www.pierrelgroup.com,and on the authorized storage mechanism of regulated information eMarket Storage atwww.emarketstorage.com.

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The executive responsible for the preparation of corporate accounting documents of Pierrel, Mr Francesco Pepe, declares, pursuant to art. 154-bis (2) of Legislative Decree 58/1998, as subsequently amended and integrated, that the accounting information contained in this press release and relative to the Interim Management Report at 31 March 2020 corresponds to the documented results, ledgers and accounting entries of the Company and the Pierrel Group.

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The present press release comprises the Interim Management Report of the Pierrel Group and Pierrel at 31 March 2020 pursuant to Article 154-ter of Legislative Decree 58/1998, as subsequently amended and integrated, and can be accessed in the section Investor Relations/Financial Documents of the web site of the Company:www.pierrelgroup.com.

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In addition to the conventional financial indicators required by the IFRS, in order to allow a better assessment of the economic management and financial position of the Pierrel Group, this document contains some alternative performance indicators relating to data of the Pierrel Group and the Company at 31 March 2020. These indicators are presented in the other annual financial reports and interim reports ofthe Company and the Pierrel Group, but should not be considered as replacements for the conventional indicators recommended by the IFRS.

According to CESR/05-178b of 3 November 2005, below is a brief description of the alternative performance indicators, as well as their composition, mentioned in this press release:

• - "EBITDA" or "gross operating result" indicates the difference between sales revenues and costs related to the consumption of materials, cost of services, labor costs and the net balance of operating income and write-downs and represents the operating result before amortization, depreciation and provisions , financial management and taxation;

• - "EBIT" or "operating result" indicates the difference between the gross operating result and the value of amortization, write-downs and provisions and represents the operating result prior to financial management and taxation;

• - "Net financial debt" is an indicator of the financial structure of the Pierrel Group. It is calculated as the result of short and long-term financial payables and related derivative instruments, net of cash and cash equivalents and financial assets.

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Attached below are the income statements and balance sheets of the Pierrel Group and Pierrel at 31 March 2020, that have not been subject to audit, together with the information required by CONSOB, with provision of 23 May 2019, pursuant to art. 114 of Legislative Decree 58/98, as subsequently amended and integrated.

FINANCIAL STATEMENTS OF THE PIERREL GROUP

Consolidated income statement

Consolidated balance sheet