Mr. Ted Hastings reports

PERK.COM INC. EXPANDS REWARDS PLATFORM WITH THE ACQUISITION OF SUPERREWARDS, AN INNOVATOR IN ALTERNATIVE PAYMENTS & VIRTUAL REWARDS

Perk.com Inc. has completed the acquisition of Playerize Network Inc. (doing business as SuperRewards), an innovator in alternative payments and virtual rewards with its worldwide direct payments and performance advertising platform that provides developers with monetization advantages while delivering engaged consumers to premiere brand advertisers.

Founded in 2007, SuperRewards initially got its start monetizing games on Facebook and has since evolved to include other desktop and mobile products, such as Offer Wall, which delivers highly targeted advertising offers and scores of locally relevant direct payment methods to millions of on-line users. Users can earn virtual currency and goods by completing offers, such as filling out surveys, watching videos or subscribing to on-line services, while developers are able to monetize non-paying users and obtain performance metrics ranging from 10 to 100 times higher than simple ads. SuperReward's co-founders, Jeff Magnusson and Lyal Avery, will be joining the company.

Ted Hastings, chief executive officer of Perk, stated: "We are pleased to complete the acquisition of SuperRewards, which will expand our rewards platform beyond Perk points to include alternative payments and virtual rewards. SuperRewards was built with the same assumption as Perk, that users want to pay for digital goods with their time and attention as their primary currency. SuperRewards has a customer base that includes over 2,000 developers and has helped to drive growth for the world's top game and app publishers while hosting hundreds of millions of user interactions each month. We are pleased that industry veterans Jeff and Lyal will be joining our team, as we are confident that their knowledge and expertise will add value and fuel growth over the long term."

Mr. Magnusson, co-chief executive officer of SuperRewards, said: "Since 2011, Lyal and I have worked together focusing on driving growth and revenue for social and mobile game studios, and, with SuperRewards, we have been able to establish it as a leader in game growth and monetization. By partnering with Perk, we are able to further that mission and have a competitive advantage over any individually focused rewards platform or alternative payment provider. We are excited to be a part of a leading mobile rewards platform and look forward to a long, successful partnership."

Under the terms of the transaction, Perk issued 455,000 Perk common shares and paid $350,000 (U.S.). The issuance of an additional 320,000 Perk common shares is subject to certain performance-based targets being met in the first 12 months following closing of the transaction. SuperRewards' revenues were $8.4-million for the trailing 12 months ended Sept. 30, 2015, and Perk expects SuperRewards to be EBITDA (earnings before interest, taxes, depreciation and amortization) positive.

We seek Safe Harbor.