Mr. Konrad Wasiela reports

ESE ENTERTAINMENT CEO PROVIDES CORPORATE UPDATE AFTER STRATEGIC PARTNERSHIP AND CAPITAL INJECTION

ESE Entertainment Inc. has provided a corporate update on its growth strategy ahead. Following the strategic partnership and recent capital injection from the sale of a 70-per-cent stake in the company's subsidiary, GameAddik, ESE's vision includes invigorating its foundational business units while integrating new technologies into gaming.

The gaming sector stands as one of the most dynamic and thriving industries globally, with gaming being one of the world's fastest-growing forms of entertainment. ESE is steadfast in its belief that gaming will continue to grow within the areas of entertainment, such as music, traditional sports and more. ESE wants to be on the forefront of creating and deploying the services and technology that allow game developers to reach more users and create better games.

ESE aims to be one of the most active and prolific companies in the gaming industry -- by using its technology and expertise to play a key role in the long-term development of the global video game sector.

ESE's strategic vision for the remainder of 2023:

• New capital injection: On Aug. 16, 2023, ESE announced that it completed the sale of 70 per cent of the issued and outstanding shares of the company's wholly owned subsidiary, 9327-7458 Quebec Inc. (doing business as GameAddik), for an aggregate purchase price of $9.1-million in cash, subject to customary adjustments. The remaining 30 per cent of the issued and outstanding shares of GameAddik will be retained by the company.
• Global expansion: ESE is extending its footprint into the Middle East with the planned opening of a Dubai office, emphasizing ESE's commitment to tapping into gaming's fastest-growing region in the world. The Middle East has seen investments from the Savvy Games Group, a company which is owned by Saudi Arabia's Public Investment Fund (PIF), totalling nearly $40-billion, and ESE wants to leverage its expertise and services to increase sales in this region.
• Continued growth in North America: ESE is continuing to expand in North America with strategic partnerships and will continue to deliver its technology and services to existing and new clients in North America.
• Focus on large-scale customers and partnerships: Building on its existing customer relationships, ESE plans to further solidify its business by signing large-scale partners and continuing to scale with existing customers. To date, ESE's customers have included Ubisoft, Electronic Arts, Riot Games, Opera and more. The company intends to focus on large-scale partnerships and customers in the period ahead.
• Innovative AR/VR utilization: ESE is channelling significant resources into its media production subsidiary, Frenzy, leveraging the potential of augmented reality/virtual reality through a dedicated new studio and emphasizing artificial intelligence-powered immersive experiences. Beyond gaming, ESE is branching out to incorporate AR/VR in diverse facets of entertainment, bringing immersive experiences to broader audiences. This development seeks to redefine user engagement and enhance interactivity across platforms.
• AI-powered production: Recognizing the transformative potential of artificial intelligence (AI), ESE is harnessing its capabilities to improve its services and technology for video game developers. The company will utilize AI to increase quality and efficiency in media production for its operations.
• GameAddik ownership: ESE owns a 30-per-cent stake in GameAddik and will continue to benefit from the development and success of this business unit. ESE also now has a strategic partnership with BlackPines, and with certain GameAddik clients.

Konrad Wasiela, chief executive officer of ESE, said: "The company is focused on driving it's value and growth across the world by providing tools and services that allow video game developers to reach more users and provide more content in this fast-paced, high-growth sector.

"While the equity markets present their unique challenges, especially for smaller-cap entities, we are confident that the intrinsic value of our concerted efforts and diverse portfolio of services will shine through. The strategic decisions we're making, such as a non-dilutive cash injection through the sale of a stake in GameAddik, allow us to refocus our energy on areas ready for growth. As we start deploying AI, AR/VR and other cutting-edge tech, we're keenly focused on applying its use for real business performance improvements. I'm confident that, in due course, our stakeholders will see the results of our endeavours."

Mr. Wasiela concluded: "As the CEO of ESE Entertainment, my confidence is unwavering as I continue to accumulate stock and increase my shareholding. Our team has delivered and will continue to deliver as we look to capitalize on the latter part of the year, which tends to be the strongest in gaming. We look forward to providing shareholders with exciting news and updates in the coming months."

About ESE Entertainment Inc.

ESE is a global technology company focused on gaming. 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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