Mr. Mike Seckler reports

EVOME MEDICAL TECHNOLOGIES REDUCES ACQUISITION DEBT, BOLSTERS MANAGEMENT TEAM TO SUPPORT SPACETECK KNEE(TM) AND REACTIVE STEP TRAINER 2024 PRODUCT ROLL-OUT

Evome Medical Technologies Inc. has reduced acquisition bank debt by $535,093 as a result of the sale of Arrowhead Medical LLC, originally acquired in May, 2023 (see news release dated May 16, 2023). As part of the adjustment, Arrowhead will continue to serve as the exclusive distributor of Biodex products in the Midwest United States and a further $209,171 of intercompany debt will be reduced.

The company continues to look to make improvements to its balance sheet as it focuses on revenue and profit growth as it prepares to launch two new products in 2024, the Spacetek Knee, an isokinetic device co-developed with NASA, and the Reactive Step Trainer, a device designed to improve balance and reduce tripping and falling with primarily elderly patients.

As part of the new product rollout, which is targeted to increase the market for Biodex products, Carmine Tronolone has been promoted to general manager of Biodex production in Long Island, N.Y.; Bill Hauer has been recently appointed vice-president of marketing and sales, and Cherine Pottinger-Harris will serve as controller and director of finance for Biodex. Natalia Vakhitova has retired as chief financial officer.

"We had a great relaunch of the new Evome at the AlphaNorth Capital event in the Bahamas last week for investors," said Mike Seckler, chief executive officer. "It was a unique opportunity to highlight our new product strategy, which increases our addressable market significantly, as well as our plan to grow a profitable company with a new set of investors. We are moving from a low margin contract manufacturing business to a higher gross margin medical device business, and I am looking forward to building on our solid turnaround at end of 2023 with a strong year in 2024."

Pursuant to an LLC membership interest purchase agreement dated Jan. 15, 2024, the original vendor of Arrowhead has agreed to acquire, and the company, indirectly through a subsidiary, has agreed to sell, all of the issued and outstanding LLC membership equity interests of Arrowhead, in consideration for (i) the vendor making a cash payment to the company of $209,171, (ii) the vendor returning to the company for cancellation the one million Class A non-voting common shares of the company which were issued by the company to the vendor on May 16, 2023, and (iii) the termination of the obligation to issue earnout payment shares to the vendor pursuant to the original stock purchase agreement dated May 16, 2023. At the time of the sale Arrowhead had $535,093 of debt and $209,171 of cash, and it represented 2.5 per cent of the company's revenue and had no impact on the company's net income for its most recently reported quarter.

The company also announces that it has granted an aggregate of 460,000 stock options to Mr. Tronolone, Mr. Hauer and Ms. Pottinger-Harris at an exercise price equal to the closing price of its common shares on the TSX Venture Exchange on the date hereof, vesting over three years and expiring between Jan. 9, 2029, and Jan. 31, 2029.

We seek Safe Harbor.