Mr. Konrad Wasiela reports

ESE ENTERTAINMENT PROVIDES CORPORATE UPDATE AND H2 2022 OUTLOOK

To help new and existing investors better understand existing operations and future objectives, ESE Entertainment Inc. chief executive officer Konrad Wasiela has provided the following corporate update.

Mr. Wasiela stated, "As we enter the second half of 2022, I would like to take this opportunity to share some highlights and successes that ESE has accomplished in the first half of 2022. We have accomplished record revenue growth, positive adjusted EBITDA, established new relationships with global companies, formal working relationships with tier-1 publishers, and surpassed many operational goals. In addition, we have finalized our foundation, by completing a platform acquisition in February of 2022. Our team's relentless work ethic, alongside a strategic business plan, yielded a successful first half of 2022. We are now setting our sights on following up the tremendous start to the year with even stronger quarters ahead."

Financial Performance

$15.0 million in quarterly revenue, year-over-year increase of 1,994%

In June 2022, ESE released its financial results for the quarter ended April 30, 2022, highlights of which include the following:

Revenue of $15.00 million for Q2 2022, representing a 1,994% increase from revenue for the three months ended April 30, 2021 of $0.72 million.

Gross profit of $3.82 million for Q2 2022, representing a 2,748% increase from gross profit in Q2 2021 of $0.13 million.

Adjusted EBITDA1 of $884,751 in Q2 2022, compared to adjusted EBITDA loss of ($832,195) in Q2 2021.

Total assets as at April 30, 2022 of $38.06 million, compared to total assets as at April 30, 2021 of $15.94 million.

CEO Konrad Wasiela stated, "We are excited to share our Q2 2022 financial performance with shareholders, which is our seventh straight quarter in a row of record growth. This was the first quarter that included the financial performance of our most recent acquisition, Gameaddik. The combined operations have proven to deliver record revenue growth, improve margins, and reach a critical milestone of achieving positive adjusted EBITDA for the first time in company history. This performance is a testament to our entire team, which continues to execute at the highest level and deliver on our business plan and growth strategy. As we start to unlock synergies of the combined operations, we are setting our sights on continued organic growth."

Operational Updates

Technology Business Unit

Led by the Gameaddik acquisition, the business unit is now fully integrated within ESE infrastructure

Continued record sales growth with new and major clients

Released phase 1 of Singularity, a proprietary DataLake/BI infrastructure for big data ingestion and processing

Continuing the next phases of Singularity DataLake/BI deployment with advanced machine learning insights

Hired new key staff throughout company to support increased growth

Eric Jodoin, COO of ESE, commented, "Q2 has been an exciting ride for us, seeing our progress snowball on key strategic pillars such as hiring new talent and growth programs for employees, along with strengthening the relationship with major clients. We're also very excited by the recent release of Singularity, our new DataLake infrastructure, which enables us to obtain vital insights to deliver faster campaign optimizations and increase user yield performance for our clients."

Infrastructure Business Unit

2021 revenue increased organically 35% over 2020

May 2022 was a record revenue month for business unit history

Contract to provide technology support for one of the leading OTT infrastructure providers whose clients include some of the largest sports leagues and TV/cable broadcasters.

Digital Motorsports Business Unit

Continued growth in ecommerce sales and achieving new sales targets

Successfully executed the European Digital Motorsports Cup - a multinational event involving European ASN's and the best drivers from across Europe.

Became an integral part of the FIA Rallystar program and Digital Motorsports RACE award in partnership with the FIA.

The company continues to build some of the best custom simulator solutions globally, including a VR simulator that was fully integrated into a real Fiesta WRC car for Ford's MSRT division.

Working with partners RACE Software, helped to develop one of the first digital twins - A one-to-one replica of ESE's Radical SR3 race car with a view to progressing the driver development aspect of Motorsports simulation.

Rob King, Director of Digital Motorsports, commented, "There has never been a more exciting time for digital motorsports as an industry and Digital Motorsports as a company. Now part of the global ESE Entertainment family, we have the resources and opportunities that we always dreamed of at our fingertips. Our core focus is stability and steady, sustainable growth."

Esports business unit

The Company's esports team, K1CK, launched in the game CS:GO

In the game FIFA by Electronic Arts, K1CK qualified for the FPF Masters Finals, a competition organized by the Portuguese Football Federation that will take place in Lisbon

Won the FPF Masters 2022, which means that ESE's K1CK esports team is now the new FIFA National Champion in Portugal.

2022 Corporate Goals

The Company will develop and deploy its proprietary DataLake/BI infrastructure for big data ingestion and processing.

The Company will continue to evaluate the gaming landscape and look to secure more global-scale contracts with large video game publishers.

The Company will look to add more senior management and advisors, with a focus on operational expertise.

The Company will look to improve financial performance and increase margins.

The Company plans to continue to expand its physical presence globally.

Implementing a growth business plan with a strong focus on integration of acquisitions in order to maximize value and extract synergies.

CEO, Konrad Wasiela, concludes: "I want to personally thank all of ESE's shareholders that have believed in our Company vision. We are executing on our business plan and continue to hit milestones quarter after quarter, in order to build long term shareholder value. Despite market conditions, our team is more energized and motivated than ever before to continue executing and scaling the Company. Our team is unlocking new synergies and opportunities in 2022, and we have built out a clear business plan for the coming years."

About ESE Entertainment Inc.

ESE is a Europe based entertainment and technology company focused on gaming, particularly on esports. The Company provides a range of services to leading video game developers, publishers, and brands by providing technology, infrastructure, and fan engagement services internationally. ESE also operates its own ecommerce channels, esports teams, and gaming leagues. In addition to the Company's organic growth opportunities, the Company is considering selective acquisitions that align with its objective of becoming a dominant global player in esports technology and infrastructure. | www.esegaming.com

We seek Safe Harbor.