Reports 30% Increase in Construction Services Revenue Compared to 2022 Completed Successful Spin-Out of Safe and Green Development Corporation as a Nasdaq Listed Publicly Traded Company Cost-Saving Initiatives Expected to Save $2.5 Million in Annualized Expenses to be Recognized in 2024 Partnering with Tunnel to Towers Foundation to Construct Travelling Modular Home to Showcase Foundation's Homeless Veteran Program MIAMI, May 08, 2024 (GLOBE NEWSWIRE) -- Safe & Green Holdings Corp. (NASDAQ:SGBX) ("Safe & Green Holdings" or the "Company"), a leading developer, designer, and fabricator of modular structures, reported results for the year ended December 31, 2023. Recent Highlights: Achieves 30% year-over-year increase in construction services revenue for the year ended December 31, 2023 Executed a Master Purchase Agreement (MPA) with Safe and Green Development Corporation ("SG DevCo") (NASDAQ:SGD), the Company's real estate development subsidiary where SG DevCo has engaged SG Echo to manufacture modular units for its planned real estate development projects, including design, engineering, fabrication, delivery, and installation of the modular systems; expected initial value of the MPA to be in excess of $140 million in net revenue over a multi-year period Received new contract from a government contractor to refurbish 19 container modules to be used by a major U.S. government agency that the Company originally built Entered into a non-binding Letter of Intent (LOI) to design, build, and operate an 800-unit supportive housing community for veterans, first responders, and others who are disabled from their service and interested in manufacturing work, as well as their families Entered into a design-build contract with Hostel Cubed, to produce their first modular camping cube for the California Coast, the "Coastal Camping Cube" Received a purchase order to provide additional modular units to an existing infrastructure solutions customer Selected by the Tunnel to Towers Foundation to construct a traveling modular home, the Comfort Home Show model, designed to showcase the foundation's Homeless Veteran Program "In 2023, Safe & Green Holdings experienced a robust increase in revenue from construction services, achieving a significant 30% increase compared to 2022," commented Paul Galvin, Chairperson and Chief Executive Officer of Safe and Green Holdings. "It was also an exciting year, and a year of celebration for the Company, as we achieved a milestone event with the successful spin-off of SG Development Corp. ("SG DevCo") into a separate entity that now trades independently on the Nasdaq market (NASDAQ:SGD). This strategic move came to fruition after more than a year of relentless dedication and work by our team. At the time of the spin-out, SG DevCo had a third-party fairness opinion that valued SG DevCo's fair market value at $74 million." "After the spin-out of SG DevCo, the Company entered into a master purchase agreement ("MPA") with SG DevCo engaging SG Echo to manufacture modular units for its planned real estate development projects, including design, engineering, fabrication, delivery, and installation of the units. The Company believes the initial value of the MPA to be in excess of $140 million in net revenue to SG DevCo over a multi-year period and that this is the first of several such agreements the Company may enter into, to support SG DevCo's upcoming development projects, which currently total approximately 3,200 units with the potential to generate in excess $500 million of gross revenue for Safe & Green Holdings over the next several years. These projects are expected to utilize SG Echo's full manufacturing capacity, even if no further projects were introduced." "The Company is also experiencing solid growth in our manufacturing sales pipeline. Based on an assessment of the current sales pipeline alone, we expect to achieve a factory utilization rate of more than 90% over the next two years. As a result, we continue to expand our manufacturing capacity with our Waldron Manufacturing site receiving its certificate of occupancy, enhancing our production capabilities, and providing the Company with two operational factories, with a third, the McLean manufacturing facility in the design phase and a fourth in the planning phase. Upon completion, these facilities are poised to offer the Company more than 360,000 square feet of manufacturing space within the United States. Looking at our projected growth, as well as the scalability of our manufacturing operations, and aggressive cost reductions allowing Safe and Green to focus on our most profitable operations, we expect the Company to not only turn cash flow positive by the end of 2024 but begin generating meaningful cash flow throughout the balance of the year and beyond. This has truly been a team effort, from our management team to our employees in the factories." "In 2023, the Company was honored with the opportunity to partner with the Tunnel to Towers Foundation for the creation of a portable modular home known as the Comfort Home Show model. This project was aimed at highlighting the foundation's initiative to assist homeless veterans. This collaboration expanded to include the construction of three modular Comfort Homes in Houston, Texas, further supporting the foundation's mission. Additionally, we agreed in principle, through a non-binding Letter of Intent (LOI) with Soldier On, to develop and manage an 800-unit housing community specifically designed for veterans, first responders, and their families, particularly those with disabilities arising from their service. This unique project envisions not just accommodating individuals with disabilities but also incorporating an 80,000-square-foot manufacturing facility in McClean, Oklahoma, compliant with the Americans with Disabilities Act (ADA). This facility is intended to support the construction of the 800 units as well as provide employment opportunities for injured veterans. We take great pride in our involvement with initiatives aimed at eradicating homelessness among veterans, acknowledging their sacrifices, and facilitating job opportunities for those with service-related disabilities. We are committed to contributing to meaningful efforts that assist veterans in reconstructing their lives, viewing it as both a privilege and a responsibility." "In addition, we recently received a new contract from a government contractor to refurbish 19 modular units that Safe and Green originally built, ...