Hybrid Enters Into the $35 Billion Insulation Market

SAN FRANCISCO, CA – May 22, 2014 – Hybrid Coating Technologies Inc. (is pleased to announce that it is entering the $35B insulation market. Hybrid is in the process of developing spray foam insulation based on its non isocyanate platform technology.

The U.S. EPA, the U.S. Department of Labor, and most recently the state of California, are cracking down on isocyanates, especially in spray foam insulation where the foam is sprayed on and causes toxic isocyanates to spread in the air. Isocyanates are considered to be a carcinogen, can cause asthma and death according to the Center for Disease Control. Most recently, California's Department of Toxic Substances Control (DTSC) has selected isocyanates from a list of 1,100 toxic components that it will focus on with the goal of potentially banning them altogether within the next two years. Hybrid is the only company to date that makes polyurethane without the use of toxic isocyanates.

"We have a tremendous opportunity with our non isocyanate polyurethane technology as we enter the polyurethane spray foam industry," said Joseph Kristul, President and CEO. "As the regulatory environment is starting to change quickly, forcing the industry to seek out non isocyanate polyurethane solutions, our technology is well positioned to be at the forefront of these solutions."

By 2017, foamed plastic insulation, which is mostly comprised of polyurethane spray foam insulation, is expected to displace fiberglass as the number one product used for insulation in the U.S.

Hybrid's patented technology is the only formulation in the world today that produces polyurethane without using any isocyanates throughout the entire production process and without compromising product quality and durability.

The Problem of Conventional Coatings/Paint and Isocyanates

Conventional polyurethane (PU) paint and coatings have many disadvantages: they are porous, permeable and maintain poor hydrolytic stability. This makes the material highly vulnerable to environmental degradation and ultimately leads to their chemical decomposition, especially when in contact with water; strict and costly health & safety measures have to be implemented in the manufacture and application of conventional polyurethane due to the toxicity of isocyanates. This is why regulatory bodies around the world are now looking toward phasing out the use of isocyanates.

The Green Polyurethane™ Solution

Green Polyurethane™ (also referred to as "HNIPU" - hybrid non-isocyanate polyurethane) is a "hybrid" material that combines the high chemical resistance properties of epoxy and advanced durability and wear resistance properties of polyurethane, making it the perfect application for sanitary, high traffic and corrosive surface areas. As a hybrid material with superior properties, Green Polyurethane™ can be applied in one or two coatings, providing a welcome cost-saving substitute to currently used multi-layered flooring applications. Green Polyurethane™ also provides the first sound solution to the environmental and health hazards associated with isocyanates in polyurethane. Its safety features allow it to be applied without the interruption of business due to public exposure, creating an additional 30-60% savings on application costs for customers.

Recent Anti-Isocyanate Regulatory Pressure

EPA MDI Action Plan: The U.S. EPA (Environmental Protection Agency) is taking progressive action to regulate and potentially ban isocyanates and has mentioned Hybrid's technology as an alternative to toxic polyurethane in its MDI Action Plan against isocyanates.
OSHA National Emphasis Program: On June 25, 2013 the Occupational Safety and Health Administration (OSHA), a division of the U.S. Department of Labor, initiated a National Emphasis Program to protect workers from the serious health effects from occupational exposure to isocyanates. Isocyanates are found in polyurethane based products. According to OSHA, "Workers exposed to isocyanates can suffer debilitating health problems for months or even years after exposure which could result in death."
California's Department of Toxic Substances Control (DTSC) has selected isocyanates and two others substances from a list of 1,100 toxic components that it will focus on with the goal of potentially banning them altogether within the next two years. The announcement is part of a bigger effort to educate consumers and manufacturers about product safety under the Green-Chemistry Law, which went into effect in California last year. Under the law, the agency has jurisdiction to ban these products altogether after following proper protocol. That process includes workshops, a public comment period and requiring manufacturers that want to sell these products in California to determine whether it would be feasible to use safer ingredients.

About Hybrid Coating Technologies: Hybrid Coating Technologies (HCT) is a San Francisco-based innovator focused on improving the quality and safety of coatings and paint for industrial and commercial customers around the world. We are the exclusive licensee of Green Polyurethane™ coatings and paint – the world's first-ever patent protected polyurethane-based coatings and paint products that eliminate toxic isocyanates from the entire production process (licensed by Nanotech Industries, Inc.).

CAUTIONARY DISCLOSURE ABOUT FORWARD-LOOKING STATEMENTS: This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements in this news release other than statements of historical fact are "forward-looking statements" that are based on current expectations and assumptions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the statements, including, but not limited to, the following: the ability of Hybrid Coating Technologies Inc. to provide for its obligations, to provide working capital needs from operating revenues, to obtain additional financing needed for any future acquisitions, to meet competitive challenges and technological changes, and other risks. Hybrid Coating Technologies Inc. undertakes no duty to update any forward-looking statement(s) and/or to confirm the statement(s) to actual results or changes in Hybrid Coating Technologies Inc. expectations.