Iodine Star Inc. - Zero tolerance to unfair competition

PRESS RELEASE

RE: Zero tolerance to unfair competition

Dear Colleagues and Partners,

Hereby we have to inform you that earlier this week our Сompany faced an attempt to tarnish the reputation of the key executives - Company’s President Ms. Lia Neumann, and the Director of R&D and world known scientist Honored Dr. Yusub Ishankulyyev.

It became known to us that several our shareholders, business partners, employees, business contacts and just random individuals have received an email communication from one of our potential investors, notifying them of the creation of a joint legal entity with Ms. Neumann for the purposes of collaboration regarding the iodine projects, including licensing the use of intellectual property to the third parties. The email also implied the prohibition to communicate with Iodine Star and/or Ms. Neumann regarding investments and any technology transfer.

The mentioned above communication surprised both us and our partners and created a lot of confusion. Thus, we would like to provide some brief comments and explanations.

First, Ms. Lia Neumann is a rightful co-owner of the listed above Patents. Second, within the last year our Company put significant effort into further development of the technology, and thus, we never intended to use the Patents listed in the communication as a self-sustainable technical solution. By the time the mentioned above Patents were published by USPTO, our new R&D team has already radically improved the technical solution, and we consider these developments and improvements being solely our accomplishments. In this regard, the Company officially announces that it does not use, nor intends to use the intellectual property specified in the email communication.

Also, it should be noted that the Company, its shareholders, and employees have not created any joint legal entity, and thus do not consider themselves being bound by it. We are still open for collaboration with responsible investors willing to enter the rapidly developing $1B iodine and $5B water purification markets, and our partner selection decisions will be officially communicated at an appropriate time.

Hereby we also would like to emphasize, that we stand against unfair competition and consider the actions of the mentioned above potential investor highly inappropriate and damaging. Our corporate lawyers are looking into the case and may proceed with legal actions accordingly.

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