Mr. Jonathan Lansky reports

LEGEND POWER SYSTEMS ANNOUNCES $1.3 MILLION IN ORDERS FOR 12 SMARTGATE SYSTEMS AS ENHANCED CUSTOMER VALUE STRATEGY GAINS TRACTION

Legend Power Systems Inc. has obtained multiple orders representing 12 SmartGate systems during the quarter. The orders follow implementation of the company's enhanced three-pronged strategy intended to address customer evaluation of the broader financial impact of power conditions on commercial buildings.

The orders announced include opportunities across multiple sales channels, including government expansion opportunities, reseller-driven sales channels and existing customer expansion projects.

One of the existing customer expansion opportunities had previously been paused and was subsequently reactivated following customer review of the company's Capital Infrastructure Risk Assessment (CIRA) framework and additional operating analysis prepared by the company.

The orders represent approximately $1.3-million in aggregate contract value (with a 45-per-cent gross margin) and consist of signed purchase orders and customer commitments received during the quarter. The orders include a combination of government-related expansion projects, reseller channel sales and existing customer expansion opportunities. Delivery timing is expected to occur over the current and upcoming quarters.

"We recognized that the market needed a clearer way to quantify the broader financial impact of operating voltage conditions beyond energy savings alone," said Mike Cioce, vice-president of sales and marketing for Legend Power Systems. "We believe the progress we have made refining our value proposition, incorporating third party infrastructure data and analyzing real-world SmartGate operating results is helping customers better evaluate the relationship between operating conditions, infrastructure risk and long-term building performance."

Over the past several quarters, the company identified that while prospective customers generally accepted that poor power quality negatively impacts building performance, many struggled to quantify the broader financial implications beyond traditional energy savings metrics alone.

In response, Legend Power implemented a focused strategy intended to more clearly quantify and communicate SmartGate's broader operational and financial value proposition through:

• Refinement of the company's technical and financial positioning;
• Expanded use of third party operating and actuarial data;
• Detailed financial analysis of existing SmartGate deployments.

As part of this effort, the company refined its technical framework to focus more specifically on the relationship between actual building operating voltage and equipment design voltage, or nameplate rating. Management notes that many commercial buildings routinely operate approximately 25 to 40 volts above equipment nameplate voltage levels despite remaining within utility-permitted operating ranges.

The company's technical framework focuses on the relationship between operating voltage conditions and equipment design voltage levels, which the company believes may influence operating temperatures within certain building systems including HVAC (heating, ventilation and air conditioning) equipment, motors, drives, elevators, lighting systems and automation infrastructure. Management further notes that elevated operating temperatures are broadly associated with accelerated material degradation and reduced equipment life expectancy under widely recognized engineering principles, including Arrhenius-based thermal aging models commonly referenced throughout electrical and materials engineering disciplines. Under these principles, relatively small increases in operating temperature can materially reduce expected material life.

The company's analysis is intended to evaluate whether prolonged operation outside equipment design voltage ranges may contribute to increased repair activity, premature equipment replacement, higher operating costs, and greater unbudgeted capital expenditure requirements for building owners and operators. Management notes that when these broader infrastructure and operational impacts are evaluated alongside SmartGate energy savings, the company believes the broader operational and infrastructure impacts can be evaluated alongside SmartGate energy savings as part of customer financial analysis.

To further support this framework, the company expanded its use of third party operational, maintenance, repair and actuarial data sets from building service and infrastructure partners. Management believes these additional data sources improve the company's ability to quantify and communicate capital infrastructure risk associated with prolonged operation outside optimal equipment voltage conditions.

In parallel, the company conducted additional internal analysis of operating and financial data from a limited sample of mature SmartGate deployments representing multiple years of operating history. Based on this preliminary analysis, the company observed reductions in operating cash requirements ranging from approximately 8 per cent to 12 per cent within the analyzed sample set, alongside lower operating cost volatility relative to predeployment baselines. The company cautions that these findings are based on a limited number of deployments and internal analysis, and results may vary materially depending on building type, operating conditions, maintenance practices, utility environments and other factors.

The orders announced today were supported by customer evaluation processes that included review of the company's expanded analytical framework, third party operating data and operating results from selected SmartGate deployments.

To further support customer engagement efforts, the company also developed its Capital Infrastructure Risk Assessment (CIRA) platform and associated analytical tools. CIRA is designed to evaluate real-world operating environments on a system-by-system basis and provide customers with greater visibility into potential operating volatility, maintenance exposure and long-term capital infrastructure risk, and is available in the solutions navigation on the Legend Power website.

About Legend Power Systems Inc.

Legend Power Systems provides an intelligent energy management platform that analyzes and improves building energy challenges, significantly impacting asset management and corporate performance. Legend Power's proven solutions support proactive executive decision making in a complex and volatile business and energy environment. The proprietary and patented system reduces total energy consumption and power costs, while also maximizing the life of electrical equipment. Legend Power's unique solution is also a key contributor to both corporate sustainability efforts and the meeting of utility energy efficiency targets.

About SmartGate

SmartGate is a turnkey solution that identifies and resolves inefficiencies in commercial electrical systems, enhancing energy performance while reducing costs and emissions. The SmartGate active energy management system installs after the meter in line with your switchgear. Using its patented technology, it extracts a percentage of the load, convert and analyze it, rebuild the waveform, and then inject it back into your system. This provides full voltage regulation (plus/minus 8 per cent) to your exact specification, on each phase individually to address the main power attributes that impact system reliability, lifetime and efficiency. All focused on reducing energy consumption while creating optimal power for optimal performance with a footprint designed for today's buildings.

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