Mr. Konrad Wasiela reports

ESE ENTERTAINMENT ANNOUNCES 2022 AUDITED FINANCIAL RESULTS WITH RECORD REVENUE AND GROSS PROFIT

ESE Entertainment Inc. has filed its audited annual consolidated financial statements and related management discussion and analysis (MD&A) for the 12 months ended Oct. 31, 2022, the highlights of which are presented in this news release. The financial statements and MD&A are available under the company's profile on SEDAR and on the company's website.

Financial highlights:

• Revenue of $19.86-million for the three months ended Oct. 31, 2022, representing a 218-per-cent increase from revenue for the three months ended Oct. 31, 2021, of $6.24-million;
• Annual consolidated revenue in fiscal 2022 of $58.82-million, representing a 417-per-cent increase from annual consolidated revenue for the 12 months ended Oct. 31, 2021, of $11.38-million;
• Annual gross profit in fiscal 2022 of $7.7-million, representing a 569-per-cent increase from annual gross profit in fiscal 2021 of $1.15-million;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $180,000 in fiscal 2022, compared with adjusted EBITDA loss of $3.5-million in fiscal 2021;
• Total assets as at Oct. 31, 2022, of $21.45-million, representing a 38-per-cent increase from total assets as at Oct. 31, 2021, of $15.5-million.

"We are thrilled to announce our 2022 audited financial results, which showcase our strongest performance to date with record-breaking revenue, gross profit and improvement in adjusted EBITDA," said Konrad Wasiela, chief executive officer of ESE.

"We set out many corporate goals in 2022, and I am proud to say we accomplished every single one of them. This is a testament to the relentless dedication and hard work from our world-class team. Further, our financial discipline, technology, strategic investments and intellectual property will help us to further hone our operations and set the foundation for strong, sustainable organic growth going forward.

"We are also excited to share that we have successfully completed the final payments under the terms of ESE's acquisition of GameAddik, which puts us in an even better position to generate cash flows and create additional value for shareholders. With our strong balance sheet and growing portfolio of assets, we believe that ESE Entertainment is well positioned for continued success in 2023 and beyond."

"After a period of significant acquisition growth, I am very excited that ESE is now well positioned to focus all efforts on organic growth opportunities. With the successful integration of our portfolio assets, we have set a fundamental base for the company. Our core focus is on profitability and delivering shareholder value, and I look forward to leading ESE's financial strategy to ensure that we are financially sound and positioned for sustained success," said Andrea Lieuwen, ESE's chief financial officer.

Q4 2022 operational highlights:

• On Aug. 15, 2022, ESE announced that its media production division would produce two live in-person e-sports events: the finals of the League of Legends Ultraliga and Teamfight Tactics competitions.
• On Sept. 12, 2022, ESE appointed Andrea Lieuwen as the company's chief financial officer. Most recently, Ms. Lieuwen was responsible for the leadership and operations of Great Canadian Gaming Corp.'s (GCGC) gaming properties across the province of British Columbia, with almost 3,000 employees, and contributing to GCGC's growth from a small private entity to over $3-billion in market capitalization and operating 25 properties across Canada. GCGC was recently acquired by Apollo Global Management Inc. through a go-private transaction in September, 2021.
• On Oct. 6, 2022, ESE announced that it had entered a $5-million (U.S.) contract to deliver its technology and user acquisition services to a European video game developer and publisher.
• On Oct. 26, 2022, ESE announced that its gaming technology division became a certified Google partner.

Subsequent events:

• On Jan. 16, 2023, ESE closed a private placement offering of secured convertible debenture units of the company for the gross proceeds of $1.25-million.
• On Jan. 20, 2023, the company completed the final cash payment under the terms of its acquisition of GameAddik in the amount of $2.1-million.
• In January, 2023, ESE completed a non-brokered private placement financing of units for aggregate gross proceeds of $2-million across three tranches.

The financial and operating results included in this news release are based on the audited results, which were released on Feb. 28, 2023. It is only in the context of the fulsome information and disclosures contained in the financial statements and MD&A that an investor can properly analyze this information. The financial statements and MD&A will be published under the company's profile on SEDAR.

About ESE Entertainment Inc.

ESE is a global technology company focused on gaming and e-sports. 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 e-commerce channels, e-sports teams and gaming leagues.

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