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VELAN PRESS RELEASE FOR IMMEDIATE RELEASE May 19 , 2021 Velan Inc. 7007 Côte de Liesse , Montreal , QC H4T 1G2 Canada Tel : ( 514 ) 748-7743 Fax : ( 514 ) 748-8635 www.velan.com For further information please contact : Yves Leduc , Chief Executive Officer or John D. Ball , Interim Chief Financial Officer Tel : ( 514 ) 748-7743 Fax : ( 514 ) 748-8635 Web : www.velan.com VELAN INC . REPORTS ITS YEAR - END AND FOURTH QUARTER 2020/21 FINANCIAL RESULTS MONTREAL , QUEBEC Velan Inc. ( TSX : VLN ) ( the " Company " ) , a world - leading manufacturer of industrial valves , announced today its financial results for its fiscal year and fourth quarter ended February 28 , 2021 . Highlights : Company delivers improved results and increases its backlog to highest level in eight years despite seeing its sales gravely affected by the global pandemic • • • • • • • Order backlog of US $ 562.5 million at the end of the quarter driven by strong net new orders received ( " bookings " ) throughout the year A company leading by example in health and safety during the novel coronavirus ( " COVID - 19 " ) pandemic Strong balance sheet highlighted by a net cash balance US $ 63.0 million at the end of the quarter Sales of US $ 85.5 million for the quarter , hindered by pandemic - related factors and inefficiencies experienced in reconfiguring the Canadian plants under the V20 program Gross profit for the quarter of US $ 23.1 million ( or 27.0 % , 240 basis points higher than last year ) EBITDA² of US $ 1.6 million and break - even net earnings for the quarter despite lower sales Transforming the Company in North America : Laying the base for the North American operations to rebound Yves Leduc , CEO of Velan Inc. , said , " Fiscal year 2021 will be remembered as a watershed year for Velan . Although our sales were severely impacted by the global pandemic , the Company made great progress on many fronts , while demonstrating its commitment to protecting its employees and customers , ensuring the integrity of our global supply chain , as well as to responsibly supporting each of the many local communities where we are present . In the end , we closed the year with substantially improved results , delivering net profits for the first time in four years and increased our backlog by 40 % , thanks to an outstanding bookings performance . More importantly , we succeeded in deploying our V20 transformation strategy faster than originally planned thereby laying the base for our North American operations ' financial health to return . This is evidenced by the sharp reduction in our production overhead costs in North America and the improvement in margins observed in all our strategic businesses . The dive of our sales was mitigated by Canadian federal subsidies , profits from the sale of our Montreal plant , and important cost reduction measures taken in North America . Combined , these allowed the company to avoid lay - offs which would have weakened us going into this fiscal year . Instead , we expect to build on our bookings momentum , substantially improve our sales , and fully realize the benefits of our V20 plan , a major milestone that now allows us to devote a lot more attention to our growth strategy . Velan . Quality that lasts .