New AI Assistant Improves Speed, Accuracy, and Scalability of Instone Service; Advances Capstone's Push to Be the Most Efficient and Customer-Oriented Operator in the Building Products Market.

NEW YORK CITY, NY / ACCESS Newswire / September 2, 2025 / Capstone Holding Corp. (NASDAQ: CAPS), a national building products distribution platform, has launched a new AI assistant at its Instone division. The technology will accelerate order processing, improve accuracy, and allow Instone to handle higher dealer volumes.

Key Highlights:

• Speed & Accuracy: AI Assistant reduces dealer response times and improves order precision.

• Scalability: Provides a unified support system that can absorb new brands and product lines as Capstone executes its M&A strategy.

• Growth Alignment: Strengthens Capstone's ability to meet rising demand without adding proportional cost.

• Efficiency Gains: Improves operating leverage and unlocks synergies across the distribution network.

"For us, this is about being there in the moment when a customer needs information," said Kevin Grotke, President and CEO of Instone. "That's the promise we've always made: we make it easy. This is just another way to deliver on that."

The assistant is designed to support both customers and staff. Dealers can get quick, self-service answers on products and specs, while Instone's support teams use the same tool to deliver faster, more accurate responses across all product categories.

"Dealers can work with us however they prefer: by phone, through our website, or now with a self-service assistant," explained Rob McKay, Chief Operating Officer at Instone. "This tool rounds out what I believe is the most complete and efficient customer experience in the industry."

For Capstone, the launch is a key step in its strategy: giving distribution businesses a platform to run more efficiently in an industry still dominated by manual processes and fragmented systems. The assistant delivers immediate value to dealers and creates a scalable model Capstone can roll out across its growing portfolio.

Additional information is available on Capstone's Website, and the tool is now live at Instone.

About Capstone Holding Corp.
Capstone Holding Corp. (NASDAQ: CAPS) is a diversified platform of building products businesses focused on distribution, brand ownership, and acquisition. Through its Instone subsidiary, Capstone serves 31 U.S. states, offering proprietary stone veneer, hardscape materials, and modular masonry systems. The company's strategy combines disciplined M&A, operational efficiency, and a growing portfolio of owned brands to build a scalable and durable platform.

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Forward-Looking Statements
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements relate to future events and performance, including guidance regarding revenue and EBITDA targets, M&A strategy, use of capital, and operating outlook. Actual results may differ materially from those projected due to a range of factors, including but not limited to acquisition timing, macroeconomic conditions, and execution risks. Please review the Company's filings with the SEC for a full discussion of risk factors. Capstone undertakes no obligation to revise forward-looking statements except as required by law.

SOURCE: Capstone Holding Corp.