J-Star Holding Co., Ltd. Advances U.S. Drone Manufacturing Initiative; Negotiates Acquisition of Facility in the Greater Houston Area

Company is Organizing an Independent Texas-based Manufacturing Platform, Contributing Proprietary Composite Technology and Engineering Expertise to Support Planned U.S. Drone-Frame Production

Strategic Real Estate Negotiations Anchor High-Precision Automated Carbon Fiber Drone Frame Production Footprint in Texas, Building Upon over 50 Years of Composite Material Expertise

TAICHUNG, Taiwan and HOUSTON, Oct. 19, 2026 (GLOBE NEWSWIRE) -- J-Star Holding Co., Ltd. (Nasdaq: YMAT) (“J-Star” or the “Company”), an innovator in advanced composite manufacturing, today announced progress on its planned U.S. drone frame production initiative, including ongoing negotiations to acquire a commercial manufacturing facility located in the Greater Houston area.

The proposed facility would serve as the manufacturing base for YMA (TX) INC., an independent U.S. legal entity that J-Star is organizing as a platform for potential joint ventures for drone-frame production with North American commercial unmanned aerial vehicle (“UAV”) developers, aerospace original equipment manufacturers (“OEMs”), and industrial partners.

J-Star's role in the initiative is focused on contributing its composite-materials expertise, proprietary technology and engineering capabilities, while supporting the early stages of facility development and production-line installation. The initiative is intended to extend the Company's existing capabilities in advanced composite manufacturing into the U.S. drone market while maintaining its core focus on composite engineering, material science and manufacturing.

J-Star’s Strategic Role as Organizer, Technology Provider, and Constructor

YMA (TX) INC. is intended to provide a foundation for collaborations through joint-venture frameworks with North American UAV developers, aerospace OEMs, and industrial partners. The scope and timing of production activities will depend on completion of the facility transaction, subsequent site preparation and equipment installation, and the development of commercial relationships.

Under this framework, J-Star serves as the primary organizer and key technology partner, contributing:

• Proprietary technology and licensing: Carbon fiber composite technologies, including custom resin matrix formulations, composite-to-metal interlocking structural designs and automated carbon fiber skin-to-skeleton welding methodologies;
• Engineering and material science: Structural design, material testing, and resin matrix optimization supplied by J-Star’s research laboratory, YMA Corporation, in Taichung, Taiwan;
• Facility development and production set-up: Contribute technical and operational support for facility procurement, site preparation, cleanroom configuration, production-line installation, in Houston; and
• Export control and data safeguards: Development of operational protocols at YMA (TX) INC. designed to address applicable U.S. export control requirements and safeguard access to controlled technical data and technology strictly to authorized U.S. Persons.

Building on Decades of Carbon Fiber Manufacturing Experience

The Houston facility will build directly upon J-Star’s over 50-year operational legacy in advanced carbon fiber composite manufacturing. Tracing its lineage back to 1970, the Company has steadily climbed the technological ladder—evolving from high-volume sports racquets and lifestyle bicycles to advanced robotic arm components, specialized healthcare equipment, automotive structures, and now precision drone frames. By combining decades of proven material science, specialized resin chemistry, and deep experience in massive high-precision production with automated U.S. assembly, YMA (TX) INC. will deliver high-reliability composite hardware to power and to support the growing U.S. drone industry.

Supporting U.S.-based Drone Manufacturing

The proposed Houston-area facility would provide a U.S. location for planned drone-frame manufacturing. Its location is within the Greater Houston aerospace region.

By combining J-Star’s composite materials capabilities with planned U.S. manufacturing operations, the Company seeks to establish a platform through which it can engage with North American UAV developers and industrial partners.

"Being in active negotiations to secure our Houston manufacturing site located in the Greater Houston area marks a decisive step forward in our North American expansion strategy," stated Jonathan Chiang, Chairman and Chief Executive Officer of J-Star. "By establishing YMA (TX) INC. as an independent, collaborative platform operating under strict U.S. data protection standards, J-Star is effectively connecting our over 50 years of carbon fiber industry experience, proprietary resin chemistry, and technical engineering with onshore U.S. joint-venture partners. We are providing the foundational IP, technology licenses, and early-stage construction support required to build a world-class automated drone frame production facility in Houston, Texas."

The completion of the real estate transaction remains subject to final negotiations, customary closing conditions, and due diligence protocols, with facility preparation, site retrofitting, and joint-venture onboarding planned to proceed following final settlement.

About J-Star Holding Co., Ltd.

J-Star Holding Co., Ltd. is a global manufacturer of carbon fiber and composite material products, with a legacy in high-performance cycling components and a growing portfolio of applications across healthcare, automotive, and other advanced materials markets. For more information, visit j-starholding.com. For more information on the corporate structure of J-Star Holding Co., Ltd., refer to “Item 4. Information On The Company – A. History and Development of the Company – Our Corporate Structure” described in our most recent annual report on Form 20-F, filed on April 30, 2026.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding the Company's capital markets strategy, its U.S. expansion plans, and its evaluation of opportunities in aerospace and defense-adjacent markets. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially, including those described in the Company's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 20-F and its registration statement on Form F-3, as amended. The Company undertakes no obligation to update any forward-looking statements, except as required by law.

Contact

Matt Chesler, CFA
FNK IR
646-809-2183
investor@j-starholding.com