D E S I G N E D F O R L I F E

2016 Current Investor HandoutOTCQB: LUVU

Our factory is just four walls, a concrete floor, and a roof that has seen a lot of Georgia summers. But from here, we can go anywhere. We work not only to produce quality products, but to uphold ideals that are bigger than our one factory. We believe in manufacturing in America. We strive to reduce our carbon

footprint through vacuum compression and utilizing our scrap stream. We act with conscious intent to provide a meaningful solution to our customers, and to offer them a seamless shopping experience.

We have been in business long enough to know that when the muse of great ideas comes calling, she must find you working. It started with foam pillows for intimacy, and grew into a

line of modular furniture and bean bags. From there, we expanded into comfort products and developed an entirely new system of compression to better fit on a shelf. Through new avenues of marketing, developing ground breaking approaches to design and manufacturing, and continued expansion into the European market, we are poised to become a major influencer in the sleep, furniture, and sexual wellness markets.

If it sounds like we are bragging it is because we are. We have fought through rough economic times and our hard work has paid off. 2016 was our best year yet, and we are already preparing to top it in 2017. We are ready to break down these walls and grow into the bright future we have worked so hard for.

150 people.14 years of innovation.3 consumer brands.1 vision.

Our Brands

AVANA COMFORT, although a new kid on the block, has become an increasingly popular revenue stream for Luvu. Desirable new fabrics and products were introduced, and the brand is given and edge in the marketplace though quality American manufacturing. In 2016, a new mobile-enabled website was launched that will provide more traffic and SEO, as well as a direct link to the company. In 2017, the brand will be shifting its focus to ‘sleep technology’ and further developing products to fit into that niche, such as pillows, mattress toppers, and bed supports. Included in this is a fresh take on the brand aesthetics, although the core values of producing the most luxurious sleep products available remains unchanged.

LIBERATOR BEDROOM ADVENTURE GEAR is rapidly expanding into Europe with the launch of several sites tailored to the EU audience. In the next year, the brand will push further into retail by offering a new selection of goods to help sell and display in the point-of-purchase environment. Through distribution and direct sales, the brand has just begun to sink its teeth into an otherwise untapped market. Liberator maintains its connection to its many fans through an on-going marketing outreach through highly successful email blasts, traditional advertising in mainstream publications, social media, and connecting with bloggers and press. The operation will continue to tailor its message, marketing, and offering towards audiences across the globe. In addition, we continue to develop as a distributer and retailer of other brands such as L’Amourose.

JAXX CASUAL LIVING continues to dominate on third party websites, including Brookstone, Amazon, and Wayfair. 2016 allowed the brand to move into a retail space with the development of compressed packaging and opening a factory store in our Atlanta facility. Marketing efforts were continued through an increased presence on social media and presenting consumers and retailers with a new selection of photography and video. In the next year, Jaxx will branch even further away from its bean bag origins. The Zipline Modular Collection and other solid foam furniture pieces will break out as front runners for the brand. The line will contain fire-proof materials to allow it to be introduced in a variety of fabrics and patterns. With the aim of getting the compact boxes onto retail shelves, the Zipline Collection is poised to redefine Jaxx.

SAFE HARBOR / FORWARD LOOKING STATEMENT

This investor presentation contains forward-looking information and other forward-looking statements within the meaning of applicable U.S. securities laws.

Forward-looking statements involve significant known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Luvu Brands, Inc., to be materially different from any future plans, goals, targets, objectives, results, performance or achievements expressed or implied by such forward-looking statements. As a result, such forward-looking state-ments should not be read as guarantees of future performance or results, should not be unduly relied upon, and will not necessarily be accurate indications of whether or not such results will be achieved. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; acceptance of the Com-pany's products in the market; the Company's success in obtaining new customers; the Company's success in product development; the Company's ability to execute its business model and strategic plans; the Company's success in integrating acquired entities and assets, and all the risks and related information described from time to time in the Company's filings with the Securities and Exchange Commis-sion ("SEC"), including the financial statements and related information contained in the Company's Annual Report on Form 10-K and interim Quarterly Reports on Form 10-Q.

NON-GAAP FINANCIAL MEASURE

Adjusted EBITDA represents net income before interest income, interest expense, income taxes, depreciation, amortization, loss on dis-posal of fixed assets, and stock-based compensation expense. We have excluded the non-cash expense, stock-based compensation, as it does not reflect the cash-based operations of the Company. Adjusted EBITDA is a non-GAAP financial measure which is not required by or defined under GAAP (Generally Accepted Accounting Principles). The presentation of this financial measure is not intended to be considered in isolation or as a substitute for the financial measures prepared and presented in accordance with GAAP, including the net income of the Company or net cash used in operating activities. Management recognizes that non-GAAP financial measures have limita-tions in that they do not reflect all of the items associated with the Company’s net income or net loss as determined in accordance with GAAP, and are not a substitute for or a measure of the Company’s profitability or net earnings. Adjusted EBITDA is presented because we believe it is useful to investors as a measure of comparative operating performance and liquidity, and because it is less susceptible to variances in actual performance resulting from depreciation and amortization and non-cash charges for amortization of debt issuance costs and stock-based compensation expense.

CONTENTS

1. Company Update

2. FY 2016 Financial Review

3. Summary and Outlook

8,000,000

10,250,000

12,500,000

14,750,000

17,000,000

FY '11 FY '12 FY '13 FY '14 FY '15 FY '16

COMPANY UPDATE

SINCE 2011 – Net Sales up 52%

3 Year CAGR +7%

Net Sales: FY 2011 to FY 2016

Since 2011, Net Sales are up 52%.

| COMPANY UPDATE

Company Update

Quarterly Net Sales: FY 2015 and FY 2016

0

1,250,000

2,500,000

3,750,000

5,000,000

Q1 Q2 Q3 Q4

2015 2016

| COMPANY UPDATE

Annual shipments of Liberator branded products

0

2,250,000

4,500,000

6,750,000

9,000,000

FY '11 FY '12 FY '13 FY '14 FY '15 FY '16

New Packaging is Yielding Results

Company Update

New packaging is yielding results.

| COMPANY UPDATE

Jaxx and Avana Combined Sales: FY 2014 to FY 2016

0

800,000

1,600,000

2,400,000

3,200,000

FY '14 FY '15 FY '16

3 Year CAGR +32%

Company Update| COMPANY UPDATE

Annual shipments to and through Amazon (all products)

0

1,250,000

2,500,000

3,750,000

5,000,000

FY '11 FY '12 FY '13 FY '14 FY '15 FY '163 Year CAGR +42%

Mainstream is embracing Sexual Wellness

Company Update

Mainstream is embracing Sexual Wellness.

| COMPANY UPDATE

Annual shipments to other mainstream (excl. Amazon)

0

475,000

950,000

1,425,000

1,900,000

FY '11 FY '12 FY '13 FY '14 FY '15 FY '16

Sales to Brookstone, Costco, Overstock, fab.com, Target, Walgreens, Walmart, Wayfair

Company UpdateSales to Brookstone, Costco, Overtock,

fab.com, Target, Walgreens, Walmart & Wafair

| COMPANY UPDATE

Adjusted EBITDA: FY 2011 to FY 2016

-125,000

0

125,000

250,000

375,000

500,000

FY '11 FY '12 FY '13 FY '14 FY '15 FY '16( )

Company Update| COMPANY UPDATE

Since 2011, sales are up 52%. Inventory is up 35%.

($000) 2011 2016 % Change

Net Sales $11,080 $16,826 52%

AverageInventory $1,017 $1,374 35%

Company Update

Since 2011, sales are up 52%. Inventory is up 35%.

| COMPANY UPDATE

1. Continue to deliver more value to our customers

2. Increase factory automation to reduce production costs

3. Focus on growing our e-commerce revenue for Liberator, Jaxx and Avana

4. Expand our European distribution and market share

5. Refinance our debt to reduce interest expense

Five Focus Areas Designed to Accelerate Growth & Create Sustained Profitability

CONTENTS

1. Company Update

2. FY 2016 Financial Review

3. Summary and Outlook

Mfg Units Shipped

130,000

140,000

150,000

160,000

170,000

FY 2015 FY 2016

Net Sales - Q4 ($000)

3,100

3,325

3,550

3,775

4,000

Q4 FY15 Q4 FY16

Net Sales - FY16 ($000)

15,000

15,500

16,000

16,500

17,000

FY 2015 FY 2016

2016 FINANCIAL RESULTS| 2016 FINANCIAL RESULTS

| 2016 FINANCIAL RESULTS

Adjusted EBITDA

0

125,000

250,000

375,000

500,000

FY 2015 FY 2016

SG&A Expense ($000)

0

975

1,950

2,925

3,900

FY 2015 FY 2016

2016 FINANCIAL RESULTS

FY ‘15 and FY ‘16 Financial Results FY ‘15 and FY ‘16 Financial Results

CONTENTS

1. Company Update

2. FY 2016 Financial Review

3. Summary and Outlook

1. Continue to improve cash flow from operations through more automation and a focus on margins

2. Continue to grow sales in all channels, especially the higher margin e-commerce channels

3. Pay down debt to improve the balance sheet

4. Increase shareholder communications and investor awareness

Summary and Outlook