Second Phase of Beyond Tobacco™ Market Research Underway with NV’s Largest Consumer Product Testing Firm

Taat Lifestyle & Wellness Ltd.

Following the first retail market testing phase for Beyond Tobacco™ in spring 2020 in which anecdotal user responses were collected at the retail level, the second phase of testing is currently in motion. This second phase is to consist of an intensive series of focus groups conducted by Las Vegas Field and Focus, which is Nevada’s largest consumer product testing research firm.

LAS VEGAS and VANCOUVER, British Columbia, July 13, 2020 (GLOBE NEWSWIRE) -- Taat Lifestyle & Wellness Ltd. (CSE:TAAT)(Frankfurt: 2TP2)(the “Company” or “TAAT LTD”) announces that it has commenced the second phase of testing for its Beyond Tobacco™ hemp cigarettes, in which an intensive series of focus groups will be carried out by Nevada’s largest consumer product testing research firm Las Vegas Field and Focus, LLC (“LVFF”) to obtain feedback from test subjects who will compare Beyond Tobacco™ cigarettes to legacy tobacco products. This phase of research follows the Company’s first research phase which began in early May 2020, in which more than 50 retail stores in Nevada and California carried “test” versions of Beyond Tobacco™ and solicited anecdotal reviews from customers regarding the product’s similarity to traditional tobacco cigarettes. As announced in the Company’s June 29, 2020 press release, the general consensus of test subjects in this first phase indicated that Beyond Tobacco™ had no significant experiential differences in comparison to tobacco cigarettes. Moreover, more than 75% of all retail stores placed reorders of Beyond Tobacco™ after their initial supply of the product sold out. TAAT LTD anticipates that insights derived from the focus groups to be conducted by LVFF will be of great utility to the Company as it prepares for the planned Q4 2020 launch of Beyond Tobacco™ to the general public.

The Company’s flagship subsidiary Taat Herb Co. has developed Beyond Tobacco™, a better-for-you alternative to tobacco cigarettes. Containing no nicotine or tobacco, Beyond Tobacco™ cigarettes are designed to closely emulate the experience of smoking a traditional cigarette. This effect is achieved by attributes to include cigarette-style packaging and a “stick” format, a proprietary blend of tobacco flavour, and an enhanced volume of smoke. Each stick of Beyond Tobacco™ contains at least 50mg of cannabidiol (“CBD”, a non-psychoactive derivative of hemp), which has been shown effective in mitigating tobacco withdrawals and reducing dependency upon tobacco. Beyond Tobacco™ is to be offered in an “Original” tobacco version, as well as a “Menthol” version.

Founded in 2001 and based in eastern Las Vegas, LVFF is a full-service market research firm that has industry-leading capabilities in both qualitative and quantitative studies. In addition to focus groups, LVFF undertakes studies to include web usability testing, mock jury trials, and food/beverage taste testing. Clients of LVFF include government agencies, retailers, television and radio stations, and non-profit organizations. Well-known clients of LVFF include R&R Partners, Harrah’s Entertainment, and the Las Vegas Convention and Visitors Authority. Through a team of field investigators, LVFF also collects more than 2,000 “intercept” interview responses per month for a variety of annual tracking and visitor statistics studies. With more than 14,000 square feet of research facility space and state-of-the-art digital audio/video equipment to capture studies in action, TAAT LTD is confident in LVFF’s ability to gather data that could be invaluable to maximizing the planned Q4 2020 launch of Beyond Tobacco™ and its early-stage performance in the retail market.

As of this writing, LVFF is in the process of recruiting participants for the Beyond Tobacco™ focus group who currently habitually smoke tobacco cigarettes. Chosen respondents will participate in multiple focus groups that are to be held throughout the summer. LVFF’s stringent recruitment process filters out potential “professional respondents” to protect the integrity of its studies. Through a diligent respondent communication protocol in which participants are periodically reminded of their upcoming studies to ensure attendance, most LVFF studies have a “show rate” of 95% or higher. LVFF also has bilingual interviewers and moderators, allowing for responses to be gathered from a wide and diverse range of participants. Furthermore, because LVFF has previously conducted similar studies for tobacco and vaping products, the Company believes this experience gives LVFF an unparalleled advantage as a market research provider for Beyond Tobacco™.

More information about LVFF can be found on its website:

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“Getting to the focus group stage is an exciting time for any product that is close to launching”, said Joe Deighan, Founder of TAAT LTD. “The Beyond Tobacco™ product has been in the making for a matter of years now, and we are all very eager to get unbiased first-impression reactions from our target audience of current smokers so that we can optimize our strategy upon our entry to the market at the time of the planned launch in Q4 2020. We were elated to receive such positive feedback from our first phase of retail market testing, and we are hopeful that the focus group sessions will yield similarly encouraging responses to lead up to our planned product launch.”

The Company is also pleased to announce that it has appointed Jamie Frawley as the leader of its investor relations program. Extensively experienced in the IR arena, Mr. Frawley has worked for firms to include First Canadian Capital Corp. and Catch Advisory Group. In these roles, Mr. Frawley specialized in clients in the resources sector (mining, oil/gas) as well as consumer packaged goods, where Frawley worked directly with Flow Hydration. In his new position at TAAT LTD, Mr. Frawley’s duties will be to build and maintain dialogues and relationships with investment community members to include stockbrokers, private investors, analysts, fund managers, newsletter writers, and members of the media. As TAAT LTD continues to build momentum, Mr. Frawley will actively seek to facilitate a dynamic and effective two-way flow of information between the Company and the investment community.

Mr. Frawley commented, “Part of the reason why I am so keen to work with TAAT LTD is because of how unique Beyond Tobacco™ is as a replacement for traditional tobacco cigarettes. Alternatives to smoking are nothing new, but this approach of seeking to closely emulate the user experience transcends many of the barriers that have seemingly prevented other alternatives from catching on. I have very much enjoyed learning all about the Company and its product line, and I look forward to serving as a liaison between TAAT LTD and the investment community. Questions about the Company are very much encouraged, and it would be my pleasure to tell investors and financial media reporters anything that they would like to know about TAAT LTD or Beyond Tobacco™.”

About Taat Lifestyle & Wellness Ltd.

Taat Herb Co., the flagship brand of Taat Lifestyle & Wellness Ltd. (CSE:TAAT)(Frankfurt: 2TP2), is an early-stage life sciences company based in Las Vegas, Nevada innovating nicotine-free and tobacco-free alternatives to traditional cigarettes. With a unique proprietary blend of all-natural ingredients and meticulous engineering of the user experience, Taat Beyond Tobacco™ cigarettes are designed to emulate every aspect of legacy tobacco products with no significant difference to the user. Taat Beyond Tobacco™ cigarettes provide benefits that include mitigation of tobacco withdrawals, and reduction of tobacco dependency. With an expert-led go-to-market strategy, the Company's objective is to position itself in the US $814 billion 1 (2018) global tobacco industry to capitalize on the growing worldwide demand for better-for-you alternatives to traditional cigarettes.

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1 British American Tobacco - The Global Market

Statement Regarding Effects of CBD on Smoking Cessation

The Beckley/Exeter research program (University of Exeter) carried out a pilot study that found after several weeks following cannabidiol ("CBD") treatment, CBD helped tobacco smokers to reduce the amount of cigarettes smoked by as much as 40%. A follow-on study is planned, which will include a brain imaging component to examine the brain activity patterns underlying the probable therapeutic effects of CBD.

Forward Looking Statements

This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Often, but not always, forward-looking information and information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur, or be achieved. Forward-looking information in this news release includes statements regarding the potential launch of Taat hemp cigarettes, in addition to the following: Completion, in whole or in part, of the focus group series to be conducted by LVFF. The forward-looking information reflects management’s current expectations based on information currently available and are subject to a number of risks and uncertainties that may cause outcomes to differ materially from those discussed in the forward-looking information. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed timeframes or at all. Factors that could cause actual results or events to differ materially from current expectations include: (i) adverse market conditions; (ii) changes to the growth and size of the tobacco and CBD markets; and (iii) other factors beyond the control of the Company. The Company operates in a rapidly evolving environment. New risk factors emerge from time to time, and it is impossible for the Company’s management to predict all risk factors, nor can the Company assess the impact of all factors on Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ from those contained in any forward-looking information. The forward-looking information included in this news release are made as of the date of this news release and the Company expressly disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable law.

The statements in this news release have not been evaluated by Health Canada or the U.S. Food and Drug Administration. As each individual is different, the benefits, if any, of taking the Company’s products will vary from person to person. No claims or guarantees can be made as to the effects of the Company’s products on an individual’s health and well-being. The Company’s products are not intended to diagnose, treat, cure, or prevent any disease.

This news release may contain trademarked names of third-party entities (or their respective offerings with trademarked names) typically in reference to (i) relationships had by the Company with such third-party entities as referred to in this release and/or (ii) client/vendor/service provider parties whose relationship with the Company is/are referred to in this release. All rights to such trademarks are reserved by their respective owners or licensees.

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