Market Overview

Kilchoman NFC Mobile Marketing Campaign Outperforms Traditional Digital Benchmarks; Campaign Success Leads to Re-Order

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Collaboration with Thinfilm Drives Consumer Engagement, Educates
Shoppers, and Reveals New Customer and Distribution Insights

Thin
Film Electronics ASA 
("Thinfilm") ((OSE: THIN, OTCQX:TFECY), a
global leader in NFC (near field communication) mobile marketing
solutions, today published a case study in conjunction with its
customer, Kilchoman
Distillery Co.
("Kilchoman"). The case study can be downloaded at http://thinfilmNFC.com/kilchoman-casestudy.

Kilchoman, an award-winning producer of single-malt Scotch whisky, was
announced as a Thinfilm customer in November 2017 and deployed
Thinfilm's NFC mobile marketing solution soon thereafter. A
post-campaign analysis revealed that NFC generated a 6.5% engagement
rate among consumers, outperforming more traditional digital marketing
channels such as display, email, search, and social1. The
analysis uncovered several additional actionable insights for Kilchoman,
including:

  • consumer tapping activity across 13 countries in Europe
  • a "sharing" element to the consumer experience, with one-third of the
    bottles tapped by more than one unique user
  • a 7-week average "ship to shelf" time (i.e., the time from when an
    NFC-equipped bottle is shipped by Kilchoman until it appears in market)
  • enhanced geographic visibility into the distillery's distribution chain
  • 22% iOS engagement via a custom Kilchoman-branded app

For the initial campaign, Kilchoman replaced conventional neck-tag
booklets with Thinfilm's NFC-powered interactive neck-tags on bottles of
its Machir Bay and Sanaig whiskies. The tags, each of which contained a
uniquely identifiable NFC chip and fully integrated with Thinfilm's
CNECT™ Cloud Platform, created a digital touchpoint that transformed
each bottle into an individual marketing channel. By tapping the "smart"
neck-tags with an NFC-enabled smartphone, consumers were able to
instantly launch unique digital experiences that communicated product
details, taste profiles, brand messaging, and distillery information –
such as Kilchoman's unique "barley-to-bottle" approach to creating
award-winning Scotch whisky.

"We saw Thinfilm's NFC mobile marketing solution as an ideal way to
connect with consumers, tell our brand story, and deliver mobile
experiences that are engaging, informative, and relevant," said Anthony
Wills, Founder and Managing Director of Kilchoman Distillery. "The
results of our first campaign were quite promising, and we're using that
data to make the consumer experience even more compelling moving
forward."

Based on the success of the original campaign, Kilchoman will integrate
Thinfilm's NFC technology directly into the whisky bottle labels,
eliminating the neck-tags. The company has placed a follow-on NFC tag
order with Thinfilm for use in primary packaging integration and will
establish NFC as an ongoing consumer engagement channel. Additionally,
Kilchoman is developing new digital content and implementing
lead-capture functionality to deepen its relationships with brand
enthusiasts.

"Kilchoman understands the value NFC delivers when it comes to
connecting directly with consumers," said Davor Sutija, CEO of Thinfilm.
"It's exciting to see campaign data that validates the power of NFC
mobile marketing, and we're eager to collaborate with Kilchoman on the
next stage of this initiative."

1 eMarketer Performance Metrics 2018

About Thin Film Electronics ASA

Thinfilm is enabling the Internet of Everything through our NFC (near
field communications) solutions. We provide consumer-focused NFC mobile
marketing as well as industrial and supply chain solutions, including
blockchain applications. Thinfilm provides end-to-end support throughout
the entire process. This starts with the manufacturing of NFC tags
through our ground-breaking, roll-to-roll printed electronics production
process, integration support to get those tags on physical objects, and
our CNECT™ cloud-based software platform which captures data and
provides actionable insights into consumer behavior and business
logistics.

Thin Film Electronics ASA is a publicly listed company in Norway with
global headquarters in Oslo, Norway; US headquarters in San Jose,
California; and offices in Linköping, Sweden; San Francisco; London;
Hamburg; Singapore; and Shanghai. For more information, visit www.thinfilmNFC.com.

About Kilchoman Distillery Co.

The picturesque Kilchoman distillery sits nestled amongst the
traditional farm buildings of Rockside Farm on the north-west coast of
Islay. Famous as Islay's Farm Distillery, our barley fields stretch
west, sheltered beneath the Cnoc Dubn cliffs, to the shores of Machir
Bay and the Atlantic Ocean. Kilchoman is unique in many ways, most
notably for our 100% Islay range, Scotland's only single farm single
malt, produced from barley both grown and malted on Islay.

Established in 2005, Kilchoman is true to Islay's rich farm distilling
heritage, cutting peat from the island's many ocean-soaked peat bogs,
slowly distilling by hand, maturing in traditional dunnage warehouses
and bottling on site without coloring or chill-filtration.

This information is subject of the disclosure requirements acc. to
§5-12 vphl (Norwegian Securities Trading Act).

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