Page 1

November 15 , 2021 CA LOWELL FARMS NATURA ARTE Lowell Farms Inc. Announces Third Quarter Revenue Lowell reports initial Lowell Farm Services revenue and Lowell brand licensing revenues . Sequential decline in quarterly revenue of 18 % driven by bulk flower market pricing declines . US ESTD 1909 * SALINAS , Calif . , Nov. 15 , 2021 ( GLOBE NEWSWIRE ) - Lowell Farms Inc. ( the " Company " ) ( CSE : LOWL ; OTCQX : LOWLF ) , a California - born innovator in cannabis cultivation and maker of the legendary brand Lowell Smokes , announced revenue and operating results for the third quarter ( September 30 , 2021 ) . All figures stated are in US Dollars and are on a US GAAP basis . Third Quarter Financial Highlights : • Revenue generated for the three - month period ended September 30 , 2021 was $ 12.5 million ; a decrease of 12 % from Q3 2020 and a decrease of 18 % from the preceding quarter . • Sales of bulk wholesale flower fell 71 % or $ 3.9 million during the quarter due to depressed wholesale prices in the market . • The Company booked its first revenues from two new businesses , brand licensing and Lowell Farm Services of $ 1.5 million collectively . • Gross margin was 1 % compared to margin of 35 % and 38 % in the third quarter of last year and Q2 2021 , respectively . • Operating loss of $ 7 million compared to operating loss of $ 473 thousand in Q2 2021 and operating income of $ 772 thousand in Q3 2020 . • Net loss for the third quarter was $ 8.7 million compared sequentially to net income of $ 731 thousand , which included income from insurance claim proceeds of $ 2.6 million , and compared to a net loss of $ 1.2 million in the third quarter last year . • Adjusted EBITDA in the third quarter was negative $ 5.2 million compared sequentially to adjusted EBITDA of $ 740 thousand and adjusted EBITDA of $ 1.9 million year over year . See " Use of Non - GAAP Financial Information " below . Management Commentary : Our many successes during the third quarter were overshadowed in our financial results by