Mr. Cameron Groome reports

MICROBIX ADDRESSES CYBERSECURITY INCIDENT

Microbix Biosystems Inc. is addressing a cybersecurity incident relating to a ransomware attack that has had no impact on operations but involved the theft of data. Microbix is actively addressing the incident, which highlights the importance of the company's ongoing program to strengthen its cybersecurity.

An international hacker group, responsible for hundreds of attacks on manufacturing and life sciences companies around the world, penetrated and corrupted a Microbix corporate server with ransomware. Microbix successfully recovered that server and its data without any material disruption to operations. While file storage systems were temporarily off-line, no operational, safety or communications systems, including e-mails, are believed to have been affected.

However, it has come to Microbix's attention that at least some company data held on the server was copied externally. Files on the server included commercially sensitive information and employee data that might be used by hackers for further cybercrime attempts. Hence this news release notification to encourage continuing vigilance by Microbix customers, employees, investors and suppliers.

Microbix has been upgrading its software and related IT (information technology) security systems since early 2022, including the successful implementation of state-of-the art and cloud-based enterprise resource planning (ERP) and electronic quality management system (eQMS) software. Concerning cybersecurity directly, Microbix continues to upgrade its systems, including but not limited to the following actions:

• Adoption of Center for Internet Security (CIS) frameworks for its cybersecurity programs;
• Comprehensive, company-wide and regular employee cybersecurity training;
• Endpoint server protection, for real-time threat monitoring, detection and response;
• Regular, redundant and off-line backups of critical information, including cloud information;
• Continuing work on IT-related and broader disaster-recovery and business-continuity planning.

Corporately, Microbix has taken the policy decision that it will not pay ransoms or engage with hackers. This decision is driven by distrust of the integrity of such persons and not wanting to encourage such international criminality by making it financially rewarding.

Microbix's CEO & President, Cameron Groome, commented: "Microbix regrets any impacts of international cybercrime and is continuing to improve its IT security at all levels. We appreciate the understanding of all stakeholders as Microbix, like so many targeted companies, adapts to increasing frequency and sophistication of cyber threats."

About Microbix Biosystems Inc.

Microbix creates proprietary biological products for human health, with over 120 skilled employees and revenues targeting $2.0-million or more per month. It makes and exports a wide range of critical ingredients and devices for the global diagnostics industry, notably antigens for immunoassays and its laboratory quality assessment products (QAPs) and reference materials (QUANTDx) supporting POCT and clinical lab EQA, enabling assay development and validation, or helping ensure the quality of clinical diagnostic workflows. Its antigens drive the tests of approximately 100 diagnostics makers, while QAPs or QUANTDx are sold to clinical lab accreditation organizations, diagnostics companies and clinical labs. Microbix QAPs are now available in over 30 countries, supported by a network of international distributors. Microbix is ISO 9001 and 13485 accredited, United States Food and Drug Administration registered, Australian TGA registered, Health Canada establishment licensed and provides IVDR-compliant CE marked products.

Microbix also applies its biological expertise and infrastructure to develop other proprietary products and technologies, most notably Kinlytic urokinase, a biologic thrombolytic drug used to treat blood clots, and reagents or media to support molecular diagnostic testing (for example, its DxTM for patient-sample collection). Microbix is traded on the Toronto Stock Exchange and OTCQX, and headquartered in Mississauga, Ont., Canada.

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