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ADDING MULTIMEDIA Phononic Transforms Cold Chain Fulfillment Ecosystem TM with First-Ever Sustainable, Actively-Cooled Tote and Technology Platform for Grocery

Phononic, a global leader in solid-state cooling and heating technology, today announced the launch of its comprehensive solution for active, portable cooling and freezing of perishable goods: the Intelligent Actively-Cooled Tote. To support the explosive demand for innovative and sustainable cold chain solutions at grocery retail, Phononic has developed the product and platform that delivers unmatched cold chain integrity as well as strong ROI and labor savings across the entire Cold Chain Fulfillment Ecosystem TM.

E-commerce grocery sales are driving cold chain investment across the industry, accelerated by the evolving needs of customers through the ongoing pandemic. Customers are demanding convenience and freshness, which is a challenge for a sector that sees $100B in online grocery shopping requiring seamless ?last mile' execution? and continued acceleration. With over 50% of U.S. households projected to do all of their grocery shopping online within 10 years (Progressive Grocer, 2018) and an estimated 60% increase over pre-pandemic dollar sales for the online grocery space over the next five years (Supermarket News, 2020), grocers are ramping up cold chain operations as quickly as possible to meet the demand.

"Across industries, our solid-state solutions are delivering cold chain performance and sustainability that compressor-based systems or other thermoelectric approaches simply cannot match," said Dana Krug, Phononic SVP, Cold Chain Fulfillment. "Our Phononic tote technology and platform for grocery retail not only provides for the highest quality of perishable foods, it also avoids the use of toxic, high GWP-refrigerants that warm the earth. That kind of positive environmental impact will be critical for climate control as this sector scales globally ? and we know that our customers are focused on it."

Phononic's Intelligent Actively-Cooled Tote will make unmatched flexibility and freshness possible for leading grocers and their customers, while also helping retailers meet critical Environmental, Social and Governance (ESG) mandates. Unlike traditional compressor-based systems, Phononic's solid-state technology has a low carbon footprint and does not use harmful Global Warming Potential (GWP) refrigerants. Using just CO2 and water, Phononic's system is also non-toxic and non-flammable, unlike other "natural" or low-GWP refrigerants currently in use?and eliminates the need for dry ice, gel packs or ice blocks.

In addition to unsurpassed sustainability, Phononic's active cooling technology and platform offers:

Strong ROI: Reduces cost by eliminating the need for tri-temp storage capital expense, in both fixed and mobile implementations. It also reduces fulfillment complexity and labor cost.

Real-time insights: The totes use wireless contact charging and are WiFi and IoT ready, offering real-time insight into cold chain automation process, leading to an increase in operational efficiencies.

Versatility: One common solution solves multiple use cases: storage; pick-and-pack (manual, semi-automated, automated); curbside pickup; delivery and unassisted delivery; hub and spoke.

Flexibility to scale: Increases the flexibility to scale with operational needs. Kick off with one container or grow to 3000+ in a site without cooling rooms, freezer warehouses or tri-temp trucks.

Demand-based energy savings: Cool or freeze only the number of customer orders needed based on demand, rather than an entire cooler, warehouse or transport truck.

Improved customer experience: Strengthens customer loyalty by ensuring order freshness and a positive experience with ever-evolving e-commerce platforms.

The Intelligent, Actively-Cooled Tote product and platform will be unveiled today at the Groceryshop conference in Las Vegas, NV. At the show, Phononic's Co-Founder and CEO, Tony Atti, will be speaking with other industry leaders at a technology-focused panel on innovations for the cold chain.

The Company is currently working with three of the top 10 U.S. grocery retailers and the leading automation partners for Micro Fufillment Centers (MFCs), with plans to expand globally.

About Phononic

Phononic, Inc. is an innovator of semiconductor cooling solutions that sustainably transform refrigeration and cooling. The Company's thermoelectric chips and fully integrated products are used in Optolelectronics (Fiber Optic Communications/5G/LIDAR); Cold Chain Fulfillment (e-commerce ecosystem); and Technology Licensing (licensed to leaders in the life sciences & healthcare, food & beverage and climate control sectors). Phononic's innovations are revolutionizing the way people work and communicate, how grocers merchandize and deliver food, how life-saving vaccines and drugs are protected, and how houses and buildings are cooled ? setting a new global standard of efficiency and sustainability.

For additional Company and product information visit: www.phononic.com.

Copyright © 2021 Phononic. All rights reserved. Website phononic.com. Twitter @phononic_inc. LinkedIn Phononic Inc.

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