Mr. Tom Velan reports

VELAN APPOINTS MR. YVES LEDUC AS PRESIDENT

Velan Inc. has appointed Yves Leduc president of the company, and he will report to Tom Velan, chief executive officer and former president. He will be joining Velan on Jan. 26, 2015.

Until recently, Mr. Leduc was a corporate officer at BRP Inc., as vice-president general manager of its North American business since 2006. In his 16 years as member of BRP's senior management team, he built a broad experience, taking on the responsibility for most business units, as well as for the key business functions of the company, including manufacturing, new product development, logistics, sales and marketing. Mr. Leduc also brings an international experience, having spent six years in Europe, leading the Austrian engine division, and spearheading several strategic manufacturing projects in Asia and Latin America. The divisions under his leadership have sustained a record of delivering lasting process and operational improvements, while achieving market share and sales growth that consistently outperformed competitors. In his previous careers, he worked at McKinsey and Co. as a management consultant, working on projects in North America and Europe, and as an attorney at Stikeman Elliott in Montreal. He is fluently trilingual (French, English and German).

As part of Velan's leadership succession planning process, a leadership and talent committee of the board of directors was formed, and the committee hired Egon Zehnder, an executive search firm, to help with the search for a new president. During the process, the committee considered a number of highly qualified internal and external candidates. Mr. Leduc was recommended by Egon Zehnder and by the committee, and selected by the board of directors to become the next Velan president.

Mr. Velan, CEO, stated: "I am very happy that we have found such a talented leader to join our company, and I believe that he will have a very positive impact on the future of the company. For the starting period, Yves will have responsibility for Velan North America, as well as for some specific tasks with a global scope. He will take on increasing global and corporate responsibilities, as he gains knowledge and experience about our company."

Bill Sheffield, chairman of the leadership and talent committee, stated: "I was very pleased with the process we followed under the guidance of Egon Zehnder. Our committee consisted of two Velan family directors and two independent directors. After many meetings and interviews, we found that Yves Leduc was the unanimous choice of the committee. I believe that Yves is an exceptional leader and a very good fit with our succession plan."

Mr. Leduc stated: "I am excited and very proud to join the ranks of Velan, a company founded over 60 years ago in Montreal, having become a global leader, thanks to an incredibly strong brand reputed worldwide for its product and know-how, its entrepreneurial culture, and its engaged and passionate employees. I see that the company is well positioned for further growth, and I look forward to working with the team and contribute to its future success. Last but not least, I wish to thank both the board and the Velan family for entrusting me with the responsibility."

We seek Safe Harbor.