Mr. Ralph Garcea reports

TURNIUM TECHNOLOGY GROUP INC. REPORTS GROWTH IN FISCAL Q1 2024 FINANCIAL RESULTS

Turnium Technology Group Inc. has released its financial results for fiscal Q1 2024. All financial information is provided in Canadian dollars unless otherwise indicated.

These results are being published following the recent announcement of the letter of intent (LOI) to acquire Claratti Ltd. that will bring hundreds of Australian-based clients into the Turnium portfolio, driving growth in cross-sell opportunities.

Ralph Garcea, chairman of Turnium, commented: "In the first quarter of fiscal 2024, the Turnium team continued its focus on expanding our channel partners, increasing monthly recurring revenue (MRR), and delivering superior product and service solutions to our global clientele. The company is very well positioned to achieve cash-flow-positive results this year, as we continue to execute on our dual-pronged growth strategy: first priority is continuing our organic growth initiatives, further expanding our global partnership program which has on-boarded 16 new agreements over the last 12 months. The second part of the growth strategy involves mergers and acquisitions, where we have two planned for this year. Our intention to acquire Claratti, discussed below, is one of these strategic acquisitions. We continue to evaluate other acquisitions as we look to scale our revenue over the next few years."

The consolidated financial statements and management discussion and analysis (MD&A) for the first fiscal quarter ended Dec. 31, 2023, are available on the company's SEDAR+ profile.

Fiscal first quarter 2024 highlights:

• Revenue in the first quarter increased to $1.28-million, compared with $1.26-million in the previous quarter;
• Gross margin in the first quarter increased to $890,000, compared with $870,000 in the previous quarter;
• Total expenses in the first quarter decreased to $1.5-million, compared with $2.2-million in the previous quarter;
• Net loss in the first quarter decreased to ($620,000), compared with ($1.7)-million in the previous quarter;
• Number of common shares outstanding (basic) at the end of the first quarter 2024 was 104,605,243.

Fiscal quarter financial highlights

The company's key financial results for the three months ended Dec. 31, 2023, are as shown in the attached table.

Subsequent highlights to the fiscal first quarter

Feb. 28, 2024 -- The company announced it has entered into a non-binding letter of intent (LOI) to acquire Claratti, a provider of managed IT solutions for enterprises covering areas such as Internet and telecommunications services, remote work and connectivity, cybersecurity, and high-quality hardware and software. Claratti is headquartered in Perth, Australia, and serves hundreds of clients across Australia. Additionally, the company also announced that Derek Spratt will be retiring as chief executive officer, effective Feb. 29, 2024, but will continue as a director. The company has implemented an office of the CEO consisting of founder/director Johan Arnet and director Jim Lovie. All decisions going forward, until a permanent replacement for the role of CEO has been appointed, will be a collaborative effort between the chairman, Mr. Arnet and Mr. Lovie, with input from the rest of the board.

Feb. 20, 2024 -- the company and Wafaicloud announce partnership to drive cloud adoption across the Middle East. Wafai International Company Inc. of Saudi Arabia (WafaiCloud) has signed a multiyear term and volume commitment to partner with Turnium Technology Group. Currently with 200 sites already in service, Wafai forecasts aggressive growth in its Turnium SD-WAN pipeline which can grow revenue more than 10 times within three years.

Additional fiscal first quarter 2024 highlights

Nov. 29, 2023 -- The company has changed its auditor from Manning Elliott LLP to Kingston Ross Pasnak LLP, effective Nov. 28, 2023. The former auditor submitted a resignation letter as the auditor of the company, effective Nov. 27, 2023, and the board of directors of the company appointed the successor auditor as the company's auditor, effective Nov. 28, 2023, until the next annual general meeting of the company.

Nov. 29, 2023 -- The company announced the appointment of Konstantin Lichtenwald as the chief financial officer. Mr. Lichtenwald has over 16 years of finance and accounting experience, including corporate compliance, accounting and financial management, initial public offerings, and reverse takeovers, providing corporate finance, valuation, taxation, financial reporting, consulting, and other accounting services to both small businesses and public companies.

Oct. 24, 2023 -- The company's board of directors has authorized the grant of an aggregate of 3.1 million incentive stock options to directors, officers and employees of the company, at an exercise price of 10 cents per common share. The options are exercisable for a five-year period from the date of grant. Certain grants will be subject to vesting terms in accordance with the terms of the option plan.

Oct. 12, 2023 -- The company's development of Turnium SD-WAN version 7.0 is progressing toward completion. This new software release will revolutionize Turnium SD-WAN and increase the use-cases and capabilities that Turnium channel partners can use to solve common customer issues in today's cloud-based networked business environment. Version 7.x will enable Turnium to integrate the numerous global partners that have been announced to date, and others that are currently in the company's pipeline -- as Turnium scales from 10,000-plus lines currently to 100,000-plus lines over the next few years.

Sept. 28, 2023 -- The company has signed a five-year OEM (original equipment manufacturer) licensing agreement with a large technology group and service provider in Southeast Asia. The new five-year OEM licensing agreement with the Southeast Asian service provider, signed on July 18, 2023, will activate across Indonesia initially.

Sept. 25, 2023 -- At the company's shareholder meeting held on Sept. 15, 2023, all resolutions were passed. A total of 54,836,337 common shares were represented at the meeting, representing approximately 54.9 per cent of the common shares issued and outstanding as of the record date.

Sept. 12, 2023 -- SDWAN & SASE Solutions Ltd. has joined the Turnium Technology Group global partner program to enable it to license, package and bundle Turnium's SD-WAN software into SDWAN & SASE Solutions' portfolio.

About Turnium Technology Group Inc.

Turnium Technology Group delivers its SD-WAN solution as a white label, disaggregated software platform that OEM channel partners host, manage, brand and price. Turnium is also available to resellers as a Turnium-branded managed service. Turnium SD-WAN is sold through a channel partner program designed for communications service providers, Internet and managed service providers, system integrators, and value-added resellers.

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