ThermoCeramix Reports Operational and Financial First Quarter 2015 Results

-Quarter marked by continuing progress in pursuit of large-scale commercialization
of Downtown Grill Hibachi and licensing contracts for platform technology-

MONTREAL, May 20, 2015 /CNW/ - ThermoCeramix Corporation ("ThermoCeramix", "TCX" or the "Company") (TSX Venture Exchange: TCX.V), a technology-licensing company engaged in the development of high-performance, energy-efficient electric heating solutions, today reported its operational and financial results for the three months ended March 31, 2015.

"We're actively continuing our pursuit of new partnerships with wholesale and speciality distributors for our lead application, the Downtown Grill Hibachi, in order to increase our presence within key North American markets this year," stated Louis Desmarais, CEO of ThermoCeramix. "In addition to this, we are developing lower-cost models of the Hibachi that we believe will have greater retail appeal. Our strengthened management team is actively working on achieving large-scale commercialization of this application to help us reach market validation of our platform technology."

Louis Desmarais further commented, "In parallel to these efforts, we are continuing to make steady, incremental progress in our licensing strategy. We've advanced discussions with targeted manufacturers over the last quarter and anticipate that these will result in new development contracts in the short term. In addition, we continue to receive positive feedback from our current development partners which we believe is an indication of the unique value of our technology and our ability to convert these projects into stable, revenue producing licensing contracts."

First Quarter 2015 Highlights

• Entered into a non-binding term sheet with Zephyr Ventilation Inc., a San Francisco-based leader in kitchen ventilation hood design, innovation and technology, for the development of two appliances;
• Strengthened the management team with the appointment of Shaun Parmar as Chief Financial Officer and Alexandre Paris as Chief Operating Officer;
• Completed an internal reorganization to simplify the corporate structure and reduce administrative costs by acquiring all of the outstanding shares of ThermoScience Enercoatings, Inc.; and,
• Finalist at the Hearth & Home Magazine's 15^th Annual Vesta Awards in the "Barbecue, Other Fuels" category in recognition of the Hibachi's innovative technology.

Highlights Subsequent to Quarter End

• Further strengthened the management team with the appointment of Daniel Cyr as VP, Supply Chain of the Company and President of Downtown Grill Inc.

Outlook

ThermoCeramix is focused on achieving mass-market validation of its high-performance, energy-efficient, platform heating technology over the next year. The Company believes that this validation will be instrumental in securing licensing agreements for its TCX™ technology.

Having proven its technology and secured a broad patent portfolio, the Company is now advancing a defined number of priority projects that it believes will accelerate validation of its technology, most notably large-scale commercialization of its lead application, the Downtown Grill Hibachi (the "Hibachi").

In parallel to these efforts, ThermoCeramix is continuing to make progress on development projects with select global aerospace, appliance and automotive manufacturers that the Company believes have the potential to translate into meaningful revenue over the next year.

Commercialization of the Hibachi

In 2013, 14 million new barbeques were shipped to households across the U.S. – a total market of $5.6 billion. Of those annual sales, electric barbeques only accounted for approximately 300,000 units which the Company believes was primarily due to the weaker performance of current electric heating technologies compared to standard gas barbeques.

Currently, ThermoCeramix is focused on a two-tier go-to-market strategy for the Hibachi, namely:

• Expanding its distribution network to include select retail and wholesale players; and
• Developing next generation models at lower price points for greater consumer appeal.

Technology Licensing

The adaptability of ThermoCeramix's technology allows it to target applications in the global household appliance industry. This industry, which has been experiencing a compounded annual growth rate of 6.1% over the last few years, is forecast to be worth an estimated $384 billion in 2017. Growth in this market is propelled by the rate of developing economies in the Asia Pacific region, the emergence of smart appliances, and increasing demand for energy-efficient products.

ThermoCeramix is focused on advancing development projects with select international consumer appliance companies, including Zephyr Ventilation, that it believes can translate into meaningful licensing opportunities.

The Company is also continuing to progress its discussions with aerospace and automotive parts producers to develop and license applications of its technologies for the production of injection moulded parts.

Financial Highlights

	Quarter ended March 31, 2015 Unaudited ($)	Quarter ended March 31, 2014 Unaudited ($)
Net research and development expenses	255,334	221,764
Administrative expenses	766,110	1,759,387
Other income	(123,235)	–
Net interest expense	13,028	23,124
Net loss for the period	832,469	2,015,412
Net loss per share (basic and diluted)	0.02	2.24

Research and Development

Research and development ("R&D") expenses for the three-months ended March 31, 2015 were $255,334 compared to $246,764 in the same period in the previous year. This year-over-year increase combined with a decrease in government grants of $25,000 resulted in an overall increase of $33,570 in net R&D expenses compared to 2014.

General and administrative expenses

General and administrative expenses for the first quarter 2015 were $766,110 compared to $1,759,387 for the first quarter 2014. This decrease was primarily attributable to two factors: (i) $770,183 of listing costs incurred in the same period in 2014 in connection with the Company's Qualifying Transaction; and (ii) $328,667 of share-based compensation expenses incurred in 2014 in connection with the Company's Qualifying Transaction, as a consequence of the re-valuation of share options issued, on a one-for-one exchange basis, to the holders of ThermoScience Enercoatings, Inc.'s options (see Note 7 of the TCX consolidated financial statements for the year ended December 31, 2014).

Other Income

For the quarter ended March 31, 2015, other income was $123,235 compared to nil in the prior year period, and was composed of R&D service contract revenues ($82,917) and net product sales ($40,318).

Net Interest Expense

Net interest expense was $13,028 for the quarter ended March 31, 2015, compared to $23,124 in the same period in 2014. This decrease was primarily attributable to higher interest income due to higher average cash balances in 2015 than in 2014.

Net Loss

Net loss for the first quarter was $832,469, compared to a net loss of $2,015,412 in the same period in the prior year. The primary contributors to this change were (i) $770,183 of listing costs incurred in the same period in 2014 in connection with the Company's Qualifying Transaction, and (ii) $328,667 of share-based compensation expenses incurred in 2014 in connection with the Company's Qualifying Transaction, as a consequence of the re-valuation of share options issued, on a one-for-one exchange basis, to the holders of ThermoScience Enercoatings, Inc.'s options (see Note 7 of the TCX consolidated financial statements for the year ended December 31, 2014).

About ThermoCeramix

ThermoCeramix Corporation (TSX.V: TCX) is a technology-licensing company engaged in the development of high-performance, energy-efficient electric heating solutions. The Company's patented and proprietary TCX™ heating technology uses sprayed-on heaters applied directly to almost any profile and material that requires heat. The technology is energy-efficient, scalable, and adaptable to almost any size and shape. The Company holds a strong and broad intellectual property portfolio of over 25 patents. The Company's strategy is to commercialize one application of its technology platform through the development, production and sales of the Hibachi, a unique indoor-outdoor grill, and then license the technology for numerous additional consumer, commercial & industrial applications. For more information, please visit the Company's web site at www.thermoceramix.com.

Caution Regarding Forward Looking Information

Certain information set forth in this press release may contain "forward-looking statements" or "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein may constitute forward-looking statements. Any such forward-looking statements may be identified by words such as "could", "estimated", "will", "expects", "anticipates", "believe", "projects", "plans", "to be" and similar expressions. Any such statements are not guarantees of future performance and undue reliance should not be placed on them. Any such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the Company's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. There can be no assurance that any such forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. For more information relating to risks which may cause the Company's actual results to be different from expected and historical results, please see the Company's "Filing Statement" dated March 26, 2014 filed under the Company's SEDAR profile at www.sedar.com.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE ThermoCeramix Corporation

ThermoCeramix Corporation: Louis Desmarais, Chief Executive Officer, [phone] ext. 5651, [email protected]; TMX Equicom: Marina Proskurovsky, Investor Relations, [phone] ext. 288, [email protected]