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VELAN PRESS RELEASE FOR IMMEDIATE RELEASE October 7 , 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 Tel : ( 438 ) 817-9917 VELAN INC . REPORTS ITS SECOND QUARTER 2021/22 FINANCIAL RESULTS AND A SIGNIFICANT INCREASE IN SALES AND IMPROVED MARGINS THAT COMBINE FOR ONE OF THE BEST QUARTERS OF THE LAST TEN YEARS , WITH NET INCOME¹ OF $ 5.0 MILLION , AND BACKLOG² REMAINING HIGH ● or Benoit Alain , Chief Financial Officer Tel : ( 514 ) 917-6454 MONTREAL , QUEBEC Velan Inc. ( TSX : VLN ) ( the " Company " ) , a world - leading manufacturer of industrial valves , announced today its financial results for its second quarter ended August 31 , 2021 . ● Highlights : Sales for the quarter amounted to $ 101.9 million , an increase of 33.6 million or 49.1 % compared to the same quarter of the previous fiscal year . This quarter's sales level represents the highest volume in the last six quarters . Gross profit for the quarter of $ 31.4 million , or 30.8 % , an increase of $ 14.3 million or 580 basis points from the same quarter of the previous year . The gross profit percentage of 29.1 % for the first six - month of the fiscal year is the highest in recent history , a performance essentially driven by the improved sales volume , a more profitable product mix delivered , as well as the margin improvement activities undertaken over the past fiscal years within the scope of the V20 restructuring and transformation plan . Net income¹ of $ 5.0 million and EBITDA² of $ 10.7 million for the quarter represent a significant improvement compared to last year's results . The better results are explained primarily by an increased gross profit , driven by an improved sales volume and product mix , despite notably lower Canada Emergency Wage Subsidies ( « CEWS » ) . Strong order backlog2 of $ 575.8 million at the end of the quarter . Net new orders ( " bookings " ) 2 of $ 81.6 million for the quarter , a decrease of $ 19.7 million or 19.5 % compared to the same quarter of the previous fiscal year . The Company's book - to - bill ratio of 0.80 for the quarter has a stronger relation to the improved sales volume rather than the softer quarter in terms of bookings . Nonetheless , the book - to - bill ratio for the six - month period stands at a positive 1.12 . The Company's net cash amounted to $ 68.1 million at the end of the quarter , an increase of $ 5.2 million since the beginning of the fiscal year . Velan . Quality that lasts .