Beyond Air Reports Financial Results for First Quarter of Fiscal Year 2021 and Provides Business Update U.S. COVID-19 study showing positive safety profile for patients enrolled to date PMA for LungFit TM PH to treat per

Air Reports Financial Results for First Quarter of Fiscal Year 2021 and Provides Business Update

COVID-19 study showing positive safety profile for patients enrolled to date

for LungFitTM PH to treat persistent pulmonary hypertension of the newborn (PPHN) expected to be submitted

to the FDA at the end of September 2020

HOME nontuberculous mycobacteria (NTM) lung infection pilot study expected to start by the end of calendar 2020

supply agreement executed for LungFitTM and LungFitTM PH

call scheduled for today, Thursday, August 6th at 8:30 am ET

CITY, N.Y., Aug. 06, 2020 (GLOBE NEWSWIRE) - Beyond Air, Inc. (NASDAQ: XAIR), a clinical-stage medical device and biopharmaceutical

company focused on developing inhaled nitric oxide (NO) for the treatment of patients with respiratory conditions, including serious

lung infections and pulmonary hypertension, and gaseous NO for the treatment of solid tumors, today announced financial results

for its fiscal first quarter ended June 30, 2020.

the quarter ended June 30th, the entire Beyond Air team continued to show their exceptional capabilities as we initiated

our U.S. COVID-19 study, released positive data in bronchiolitis showing vastly improved benefit with the 150 ppm nitric oxide

compared to the 85 ppm nitric oxide and control arms and revealed our potentially ground-breaking data in solid tumors. This positive

momentum is set to continue over the next few quarters with a planned submission of the PMA for the LungFitTM PH to

treat persistent pulmonary hypertension of the newborn (PPHN), continued enrollment in the U.S. study of the LungFit in COVID-19

patients, initiation of our AT-Home NTM study using the LungFitTM HOME system and progress in our solid tumor program,"

said Steve Lisi, Chairman and Chief Executive Officer of Beyond Air.

believe that nitric oxide can be an effective treatment for mild-to-moderate COVID-19 patients, and the LungFitTM is

by far the optimal system to deliver the 150 parts per million concentration needed in order for nitric oxide to be effective

against SARS-CoV-2. Given the progress we are making, we anticipate the opportunity this fall to evaluate the efficacy of nitric

oxide delivered by LungFitTM to COVID-19 patients," concluded Mr. Lisi.

First Quarter and Recent Highlights

results for three months ended June 30, 2020

for the three months ended June 30, 2020 was $229,161 as compared to $627,469 for the three month ended June 30, 2019, all of

which was licensing revenue.

and development expenses for the three months ended June 30, 2020 were $4.3 million, compared to $2.3 million for the three month

ended June 30, 2019.

and administrative expenses for the three months ended June 30, 2020 were $2.5 million, compared to $2.2 million for the three

month period ended June 30, 2019.

the three months ended June 30, 2020, the Company had a net loss of $6.7 million, or ($0.40) per share, compared to a net loss

of $6.2 million, or ($0.67) per share for the three months ended June 30, 2019.

of June 30, 2020, the Company had cash, cash equivalents and restricted cash of $24.4 million.

Air, Inc. is a clinical-stage medical device and biopharmaceutical company developing a revolutionary NO Generator and Delivery

System, the LungFit , that uses NO generated from ambient air to deliver precise amounts of NO to the lungs of ventilated

and non-ventilated patients for the potential treatment of a variety of pulmonary diseases. The LungFit can generate up

to 400 ppm of NO, for delivery either continuously or for a fixed amount of time and has the ability to either titrate dose on

demand or maintain a constant dose. The Company is currently applying its therapeutic expertise to develop treatments for pulmonary

hypertension in various settings, in addition to treatments for respiratory tract infections that are not effectively addressed

with current standards of care. Beyond Air is currently advancing its revolutionary LungFit in clinical trials for the

treatment of severe lung infections such as SARS-CoV-2, bronchiolitis and nontuberculous mycobacteria (NTM). Additionally, Beyond

Air is using ultra-high concentrations of NO with a proprietary delivery system, separate from the LungFit , to target certain

solid tumors in the pre-clinical setting. For more information, visit www.beyondair.net.

Oxide (NO) is a powerful molecule, naturally synthesized in the human body, proven to play a critical role in a broad array of

biological functions. In the airways, NO targets the vascular smooth muscle cells that surround the small resistance arteries

in the lungs. Currently, exogenous inhaled NO is used in adult respiratory distress syndrome, post certain cardiac surgeries and

persistent pulmonary hypertension of the newborn to treat hypoxemia. Additionally, NO is believed to play a key role in the innate

immune system and in vitro studies suggest that NO possesses anti-microbial activity not only against common bacteria, including

both gram-positive and gram-negative, but also against other diverse pathogens, including mycobacteria, viruses, fungi, yeast

and parasites, and has the potential to eliminate multi-drug resistant strains.

the LungFit NO Generator and Delivery System*

Air's LungFit NO Generator and Delivery System is a cylinder-free, phasic flow nitric oxide delivery system and has

been designated as a medical device by the US Food and Drug Administration (FDA). The ventilator compatible version of the device

can generate NO from ambient air on demand for delivery to the lungs at concentrations ranging from 1 part per million (ppm) to

80 ppm. The LungFit system could potentially replace large, high-pressure NO cylinders providing significant advantages

in the hospital setting, including greatly reducing inventory and storage requirements, improving overall safety with the elimination

of NO2 purging steps, and other benefits. The LungFit can also deliver NO at concentrations at or above 80 ppm

for potentially treating severe acute lung infections in the hospital setting (e.g. COVID-19, bronchiolitis) and chronic, refractory

lung infections in the home setting (e.g NTM). With the elimination of cylinders, Beyond Air intends to offer NO treatment in

Beyond Air's LungFit is not approved for commercial use. Beyond Air's LungFit is for investigational

use only. Beyond Air is not suggesting NO use over 80 ppm nor use at home.

pulmonary hypertension of the newborn (PPHN) is a lethal condition and secondary to failure of normal circulatory transition at

birth. It is a syndrome characterized by elevated pulmonary vascular resistance (PVR) that causes labile hypoxemia due to decreased

pulmonary blood flow and right-to-left shunting of blood. Its incidence has been reported as 1.9 per 1000 live births (0.4-6.8/1000

live births) with mortality rate ranging between 4-33%. This syndrome complicates the course of about 10% of infants with

respiratory failure and remains a source of considerable morbidity and mortality. NO gas is a vasodilator, is approved in dozens

of countries to improve oxygenation and reduces the need for extracorporeal membrane oxygenation (ECMO) in term and near-term

(>34 weeks gestation) neonates with hypoxic respiratory failure associated with clinical or echocardiographic evidence of pulmonary

hypertension in conjunction with ventilator support and other appropriate agents.

majority of hospital admissions of infants with bronchiolitis are caused by respiratory syncytial virus (RSV). RSV is a common

and highly transmissible virus that infects the respiratory tract of most children before their second birthday. While most infants

with RSV present with minor respiratory symptoms, a small percentage develop serious lower airway infections, termed bronchiolitis,

which can become life-threatening. The absence of treatment options for bronchiolitis limits the care of these sick infants to

largely supportive measures. Beyond Air's system is designed to effectively deliver over 80 ppm NO, for which preliminary

studies indicate may eliminate bacteria, viruses, fungi and other microbes from the lungs.

mycobacteria (NTM) is a rare and serious bacterial infection in the lungs causing debilitating pulmonary disease associated with

increased morbidity and mortality. NTM infection is acquired by breathing in aerosolized bacteria from the environment, and if

ignored can lead to NTM lung disease, a progressive and chronic condition. NTM is an emerging public health concern worldwide

because of its multi-drug antibiotic resistance. Current treatment guidelines suggest a combination of multiple antibiotics delivered

continually for as long as two years. These complex, expensive and invasive regimens have a poor record in the treatment of Mycobacterium

abscessus complex (MABSC) and refractory Mycobacterium avium complex (MAC) and have the potential for causing severe adverse events.

Beyond Air's system is designed to effectively deliver 150 - 400 ppm NO to the lung, and early data indicate that this range

of NO concentration may have a positive effect on patients infected with NTM.

(coronavirus disease 2019) is an infectious disease caused by the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2).

COVID-19 first emerged in Wuhan, China in December of 2019. Those affected develop fever, cough, shortness of breath and/or difficulty

breathing. While the majority of cases result in mild symptoms, some can progress to pneumonia and multi-organ failure. Older

adults and people who have serious chronic medical conditions are at an increased risk of developing severe complications from

COVID-19. There is no specific treatment approved for COVID-19 and patients are managed with supportive care. NO may prove to

be a treatment as the impact on the lung should result in bronchodilation, reduction in inflammation and inhibition of the viral

replication process1,2,3. As of August 5, 2020, more than 18 million confirmed cases of COVID-19 and more than 690,000

deaths have been reported globally.

Tripathi et al, FEMS Immunology and Medical Microbiology, December 2017

Saura, M., et al., An antiviral mechanism of nitric oxide: inhibition of a viral protease. Immunity, 1999. 10(1): p. 21-8.

Akerstr m S et al. Nitric oxide inhibits the replication cycle of severe acute respiratory syndrome coronavirus. J Virol.

is the second leading cause of death globally, with tumor metastases responsible for approximately 90% of all cancer-related deaths.

Current cancer treatment modalities generally include chemotherapy, immunotherapy, radiation, and/or surgery. Nitric oxide at