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CORPORATE PROFILE
AlphaProTech, Ltd. is in the business of protecting people, products and environments. The Company accomplishes this by being a leading designer, developer, manufacturer and marketer of high-value disposable protective apparel, building supply, infection control and other products for the medical, dental, cleanroom, pharmaceutical, industrial safety, construction supply and consumer markets.

The Company’s growth strategy is to provide innovative solutions to its customers and create meaningful value for its shareholders. AlphaProTech has a reputation for combining extensive research and development with the highest levels of responsiveness, quality, safety and reliability.

AlphaProTech’s manufacturing facilities and offices are located in Arizona, Georgia and Utah in the United States, as well as in Canada and India.

TABLE OF CONTENTS
1 Financial Highlights
2 To Our Shareholders
4 Disposable Protective Apparel
6 Infection Control
8 Building Supply
Annual Report on Form 10-K for year ended December 31, 2017
Corportate Information
FINANCIAL HIGHLIGHTS
1 Annual Report 2017
TO OUR SHAREHOLDERS

As 2017 drew to a close, we were pleased to do so on continued solid ground. This was a year in which we made strides in building for the future with organic new product launches and development of others, but also a year in which we said goodbye to one of our founders with the loss of our former President and Chairman, Al Millar.

Operationally, we delivered 8.2% growth in sales of our housewrap, a 38.7% increase in sales of other woven material and top line growth in our Infection Control and Disposable Protective Apparel segment, despite a $2.2 million decline in total sales. The overall decrease was driven primarily by lower sales of our synthetic roof underlayment.

Our 2017 profitability was bolstered by a nearly three-percentage point increase in gross profit margin, despite the overall reduction in sales, as we remain focused on strategies to manage our cost platform to maximize profit potential. Going forward, products in our Disposable Apparel segment, which were duty free in 2017 under the U.S. Customs and Borders Protection Generalized System of Preferences (GSP), will no longer be duty free in 2018, as the government program was not renewed. We expect this change will have an impact on our gross profit margin in 2018, but we believe we will still achieve margins in the high thirty percent range. We believe there may be an opportunity for this program to be reinstated in the future, but even if it is not, we expect increased revenue and operating leverage will drive higher net profit and earnings per share in 2018.

Net income of $2.6 million for 2017 was negatively impacted by expenses related to the death benefit provided to the beneficiaries of our former President and Chairman. Excluding these expenses, net income would have been down by only a modest amount compared to 2016, and earnings per share would actually have been up at $0.21 per diluted share, compared to $0.19 for 2016.

Our balance sheet remains healthy, and the generation of cash from operating activities, which was more than $4 million for 2017, continues to support our active share repurchase program, which directly returns value to our shareholders, and enables investment in new product development.

Lloyd Hoffman
President and
Chief Executive Officer
2 Annual Report 2017
In our Building Supply segment, we announced a new, innovative and exciting product line in our housewrap family, REX™ Wrap Fortis with JX ALTA 360° Drainage Technology™ at the end of the third quarter of 2017.

Our initiative to expand our product offerings to support future growth led to accomplishments in both the Building Supply and Disposable Apparel segments during 2017. In our Building Supply segment, we announced a new, innovative and exciting product line in our housewrap family, REX™ Wrap Fortis with JX ALTA 360° Drainage Technology™ at the end of the third quarter of 2017. With its one-of-a-kind construction, this product uniquely enables the drainage of water in every direction to protect buildings from the elements exponentially better than a traditional housewrap, while decreasing job site material waste, simplifying installation to reduce labor and allowing fewer products to be carried onto the job site. This new product offering competes in a segment of the housewrap market that has historically been untapped for us, and we anticipate that it will provide us with growth opportunities going forward. We are currently working on the development of additional Building Supply segment products, which we hope to launch during 2018. Research and development efforts in our Disposable Protective Apparel segment have culminated in a new product launch branded “NuTech™”, which is expected to contribute to revenue in 2018. This line of product focuses on the industrial safety market, as compared to our current clean room market and we are able to monetize our existing distribution network.

We are excited to grow these new opportunities into material contributions for the future growth of our Company. We look forward to a successful 2018 as we build on the AlphaProTech brand and continue to develop, manufacture and market innovative, high-value products for the protection of people, products and the environment. We thank you for your continued support.

Sincerely,

Lloyd Hoffman
President and
Chief Executive Officer

3 Annual Report 2017
DISPOSABLE
PROTECTIVE
APPAREL

The goal in the design and manufacture of all Critical Cover® garments is to keep the wearer cool, clean and comfortable and to provide the right level of protection for the wearer, as well as to protect the environment from possible contamination. To achieve this, we offer a comprehensive selection of materials and garment designs to meet a wide range of applications and environments.

Head-to-toe protective garments highlight AlphaProTech’s limited-use apparel portfolio. From pharmaceutical production to medical device to electronics markets, we manufacture a variety of configurations and performance characteristics so that our materials exceed the expectations of our customers and the demands of the critical environments in which they operate.

ComforTech™ Coveralls — Provide Superior Protection without Sacrificing Comfort
Critical Cover® UltraGrip™ Boot Cover
Chris Louisos
Sr. Vice President
Sales & Marketing
Apparel, Infection Control
4 Annual Report 2017
AlphaProTech is a leader in the disposable protective apparel market and is committed to supplying high value and superior performance. Our Critical Cover® apparel is designed to protect people, products and manufacturing environments.
ComforTech™ Coveralls — Provide Superior Protection without Sacrificing Comfort
Critical Cover® ComforTech® Lab Coats — Keep Wearers Cool, Comfortable and Protected
Critical Cover® UltraGrip™ Shoe Covers — the Ultimate in Slip and Fall Protection
5 Annual Report 2017
INFECTION
CONTROL

The innovative and patented Positive Facial Lock (PFL®) feature utilizes our exclusive Twist-Seal technology that allows the user to create a custom fit. Our integrated Magic Arch® prevents the mask from coming in contact with the user’s nose and mouth, thereby making it easier to breathe and enhancing filtration efficiency.

AlphaProTech designs and manufactures a wide range of facemasks and face shields for the medical, dental, laboratory and light industrial marketplaces.

Critical Cover® Coverall® Face Shields — Protection Against Light Splash and Particles
Critical Cover® ShieldMate® Facemask with Integrated Eye Shield
6 Annual Report 2017
Our facemasks incorporate AlphaProTech’s patented and integrated Magic Arch® and PFL® (Positive Facial Lock®) features that enhance user comfort and product performance.
PFL® N95 Particulate Respirator’s unique flat‐fold design meets the Centers for Disease Control (CDC) and NIOSH’s recommended protection levels, where applicable, for many airborne contaminants
Critical Cover® CoolOne™ Facemasks — Hypoallergenic, Fluid Resistant Sensitive Skin Facemask
Critical Cover PFL® Masks. Innovative and Patented feature utilize our Twist-Seal® design, creating a custom fit each and every time
7 Annual Report 2017
BUILDING SUPPLY

SYNTHETIC ROOF UNDERLAYMENT

AlphaProTech is recognized in the industry as a leading manufacturer, innovator and creator of premium synthetic underlayments, as evidenced by our numerous private label manufacturing agreements outside of our proprietary brands. Products that go unseen, protection that gets noticed – that is what AlphaProTech is recognized for.

AlphaProTech has developed three distinct synthetic underlayments, broadening our market reach into all areas of the roofing industry.

REX TECHNO SB™ Synthetic Roof Underlayment, Protecting the installers with advanced walking treatments
REX™ SynFelt Synthetic Roof Underlayment, Protecting your most valuable asset
Bruce Hayden
Senior Vice President
Sales & Marketing
- Building Products
8 Annual Report 2017
The REX Brand is sought after in the building products distribution market. We currently manage our brand sales through our extensive list of two-step distributors, buying groups and one-step roofing dealers. As the brand grows, so does our list of stocking dealers and distributors. All of this culminates in the demand from home builders and roofers installing our products on a daily basis.
REX™ SynFelt Synthetic Roof Underlayment, our Premium Brand
REX TECHNO SB™ Synthetic Roof Underlayment
REX TECHNOply™ Synthetic Roof Underlayment
9 Annual Report 2017

HOUSEWRAP

Along with protecting roofs, AlphaProTech also has a flagship line of weather resistant housewrap barriers for walls. From the most economically priced product up to systems that offer newer performance standards in the ever changing building industry, we have you covered.

In keeping our brand consistent, all of our weather resistant barriers fly under the REX brand. There isn’t a wall system that we don’t have a product to cover, as we start with everyday wraps and end with drainage systems that are used in complete wall systems. The REX Wrap family of products makes it simple for customers to choose from one brand, one company and one manufacturer.

REX™ Wrap FORTIS Breathable Weather Barrier
REX™ Wrap Weather Resistive Barrier
REX™ Wrap PLUS Weather Resistive Barrier
10 Annual Report 2017
CORPORATE INFORMATION

MARKET FOR SHARES

The Company’s common shares are quoted on the NYSE American Exchange under the trading symbol “APT.”

SHARE PRICE INFORMATION

Set forth below are the ranges of daily high and low prices for the Company’s common shares on the NYSE American Exchange for the periods indicated.

Quarters Ended 2017 3/31 6/30 9/30 12/31
High $3.50 $3.30 $4.05 $4.25
Low $2.55 $2.60 $2.91 $3.65

Quarters Ended 2016 3/31 6/30 9/30 12/31
High $1.95 $2.55 $3.68 $3.80
Low $1.55 $1.85 $2.20 $2.85

As of April 12, 2018 there were 14,187,747 shares outstanding, 143 shareholders of record and approximately 4500 beneficial shareholders.

DIVIDEND POLICY

The holders of the Company’s common stock are entitled to receive such dividends as may be declared by the Board of Directors of the Company from time to time to the extent that funds are legally available for payment thereof. The Company has never declared or paid any dividends on any of its outstanding shares of common stock. It is the current policy of the Board of Directors to retain any earnings to provide for the development and growth of the Company. Consequently, the Company has no current intention to pay cash dividends in the foreseeable future.

TRANSFER AGENT AND REGISTRAR

Shareholders should refer specific questions concerning their stock certificates, in writing, directly to the Transfer Agent and Registrar at:
American Stock Transfer & Trust Company
6201 15th Avenue
Brooklyn, NY 11219

INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM

Tanner LLC
Key Bank Tower at City Creek
36 South State Street, Suite 600
Salt Lake City, UT 84111-1400

LEGAL COUNSEL

Maynard Cooper & Gate
1901 - 6th Avenue N, Suite 2400
Birmingham, AL 35203

FORM 10-K

A copy of the Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission for the fiscal year ended December 31, 2017 is available upon request without charge to persons who are beneficial shareholders as of the record date for the 2018 Annual Meeting. Such written requests should be directed to:
AlphaProTech, Ltd.
60 Centurian Drive, Suite 112
Markham, Ontario L3R 9R2 Canada

OFFICERS AND DIRECTORS

Lloyd Hoffman
President and Chief Executive Officer and Director

Colleen McDonald
Chief Financial Officer

Danny Montgomery
Sr. V.P. Manufacturing and Director

Donna Millar
Investor Relations and Director

David Garcia
Director
Retired Independent Businessman

Russ Manock
Director
Russ Manock Chartered Professional Accountant

Dr. John Ritota
Director
Dentist – Ritota & Ritota P.A.

James W.A. Buchan
Director
Management – Bell Canada

ANNUAL MEETING

The Annual Meeting of Shareholders will be held:
Tuesday, June 5, 2018 at 9:30 am
Edward Village Hotel
50 East Valhalla Drive
Markham, Ontario L3R 0A3 Canada
905-477-2010
Corporate Head Office
60 Centurian Drive
Suite 112
Markham, Ontario
L3R 9R2
Phone: 800 847-9725
Fax: 905 479-9732
Email: ir@alphaprotech.com