Unaudited Financials for FY 2016

REPORT OF THE CHAIRMAN AND CHIEF EXECUTIVE 1 March 2017 PROMISIA INTEGRATIVE ANNUAL RESULT FOR THE YEAR ENDED 31 DECEMBER 2016 Promisia Integrative Limited (Promisia) and its subsidiaries ("the Group") has today announced its unaudited result for the year ended 31 December 2016. Promisia Group Results Revenues from sales of Arthrem(R) were $2,664,806 in fiscal 2016, representing a 553% improvement on the $408,000 recorded in the previous year. The Group incurred a loss of $462,822, including non-cash expenses of $80,000 and interest expenses of $55,000, for the year ended 31 December 2016 (2015: $946,000 loss). Highlights from 2016 Revenue growth of over 500% Arthrem(R) sales increased significantly throughout the year. According to an independent report from RPM pharmacy retail, Arthrem(R) is now the top selling product, by dollar value. Arthrem(R) is now available from most New Zealand pharmacies. Trading result The loss for the year was below budget and reflected a loss of $366,000 in the first half of the year compared with a loss of $96,822 in the second half. In the second half the loss was only $69,098, before non-cash expenses. The directors consider this to be very satisfactory outcome, especially when compared with the loss of $946,000 in 2015. Successful Rights Issue In December 2016 Promisia raised $1,433,331 through a successful rights issue. The issue was oversubscribed by $1,244,219. The primary use of these funds will be the launch of the joint supplement for dogs in New Zealand and the launch of Arthrem(R) in Australia. The other main use of the funds will be as working capital to finance all stages of the supply chain to service continued sales growth. Outlook for 2017 The company had achieved its target market share for 2017 by the end of 2016. The current year has started well with sales in January well ahead of the same month in 2016. In New Zealand the company intends to build on a successful 2016 for Arthrem(R). In late 2016 the company changed marketing representation and as of 1 February 2017 has implemented a small price increase to recover increased direct costs. The company has taken over order fulfilment and operates a small warehouse and dispatch service to pharmacies and pharmacy wholesalers. Australia The company is going through the registration process to list Arthrem(R) as a complementary medicine in Australia with the Therapeutic Goods Administration. The process is taking longer than expected and in the meantime work is underway to prepare for a product launch in selected geographical markets. Joint supplement for dogs Manufacturing trials are ongoing to perfect the formulation and maximise acceptance and palatability by dogs. Marketing and distribution plans are also under development. Research As noted in the half year announcement the research programme has been focused on the finalisation of a formulation for the joint supplement for dogs. Priorities The priorities for 2017 are: o Building Arthrem(R) sales in New Zealand o The launch of Arthrem(R) in Australia, and o The launch of the joint supplement for dogs in New Zealand and, possibly, in Australia. On behalf of the directors and management we thank shareholders for their support of the company, particularly those who participated in the cash issue in late 2016. For further information please contact: Mr. Charles Daily, Chief Executive Officer on (04) 894 8524 or Mr. Stephen Underwood, Chairman on 0274993387 End CA:00297606 For:PIL Type:FLLYR Time:2017-03-01 08:30:54