Forward Industries Issues Open Letter to Shareholders Reviewing Plans to Build Shareholder Value, 2014 Activities and Company Opportunities - Seite 2

This year, we expanded our efforts to find the right transformative acquisition to improve shareholder value, evaluating opportunities similar to our core business, as well as in markets that we believe both to be attractive and that leverage the skill set of our management and Board. While previous CEOs and Boards at the Company have attempted similar transactions, they did not have the relevant skill set or deal experience -- we do.

For example, we recently identified and pursued a potential acquisition that, if successful, would have been highly cash-accretive, doubled our revenue and quintupled our EBITDA on a current pro forma per share basis. Unfortunately, as part of his campaign against management, Mr. Terrance Bernard Wise has tried to thwart our ability to pursue accretive transactions that would provide the necessary scale to increase our visibility to the markets, and this specific opportunity is now on hold, until the unnecessary distractions stemming from Mr. Wise's interference are resolved. The Board and management will nonetheless continue to investigate accretive, transformative transactions, for the benefit of all shareholders, while also reviewing potential operational changes, such as shifting from the current, single-vendor sourcing contract to multiple vendors as some large shareholders have requested.

We believe at its heart that your Board and management have a fundamentally different vision than Mr. Wise of how to build this business and increase shareholder value. Here is what we have done:

• Increased revenue by approximately 45% over the last eleven quarters.
• Returned the Company to an operating profit in FY2013 and for the first three quarters of FY2014, after six straight years of losses.
• Enacted necessary, difficult decisions to reverse course on business strategies that were no longer viable.
• Articulated a clear vision and strategy to create long term, sustainable shareholder value, after almost twenty years of a stagnant share price.

By contrast, Mr. Wise is a UK-based businessman with no experience running a public company -- his entire experience consists of managing privately-held ventures. Furthermore, while he has freely criticized management and the Board, he has never articulated any positive vision for this Company, and in fact has repeatedly abstained from voting on critical issues while serving on the Board.