• Caravelle estimates partnership could generate $200 million in revenue within several years
• U.S. partner to fund construction of the mill

NEW YORK, March 2, 2023 /PRNewswire/ -- Caravelle International Group (Nasdaq:CACO), a global ocean technology company, today announced that the company has established a partnership with a U.S. corporation to manufacture wood products in Gabon, Africa for export to the United States and that the government of Gabon has granted the partnership use of 165 acres of land for the location of the lumber mill.

The mill will produce wood laminate flooring, plywood, and other wood products. The products will have a significant cost advantage over lumber products domestically produced in the United States because of cheaper lumber and labor in Gabon, but also because the African Growth and Opportunity Act will allow for the duty-free import of these products into the U.S.

The U.S. based partner will fund the construction of the mill in Gabon and already has established distribution in the U.S. to sell these products. Caravelle will ship the wood products to the United States. Caravelle will also dry the wood products in transit, using its patent-pending CO-Tech system that uses recycled engine heat for the drying process, resulting in significant cost savings and a 6-week reduction in lead times vs. traditional kiln drying at the mill.

The partners estimate that the venture will generate $200 million in annual revenue within several years. This is another example of how the Company is making its business less cyclical and more profitable.

"This is an exciting new venture for Caravelle and our U.S. based partner," said Dr. Guohua Zhang, Chief Executive Officer of Caravelle. "We have had great experience working with Gabon in the past, having exported lumber from there to Asia. Expanding export into the United States is a logical next step that will be a big growth driver for our Company in the years ahead."

About Caravelle International Group

Caravelle is a global ocean technology company. Its business comprises of two sectors: the traditional business in international shipping, operated by the Topsheen Companies (Topsheen Shipping Group Corporation (Samoa) and its subsidiaries) and the new CO-Tech business under Singapore Garden Technology Pte. Ltd..  As the traditional business, Caravelle's international shipping business has generated all revenues. The CO-Tech business is a new development building upon the existing shipping business. It enables wood desiccation during the maritime shipping process, with full utilization of the shipping time, space, and the waste heat of exhaust gas from the shipping vessels. Caravelle's CO-Tech industry has no historical operations and has not generated revenue. Caravelle is headquartered in Singapore.

Forward Looking Statements

This press release includes forward-looking statements that involve risks and uncertainties. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, including the successful consummation of the Company's initial public offering, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

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