Mr. John Simmons reports

CARMANAH ANNOUNCES COMPLETION OF SALE OF ON-GRID POWER BUSINESS

Carmanah Technologies Corp.'s wholly owned subsidiary, Carmanah Solar Power Corp., has completed the sale of its solar power engineering, procurement and construction (EPC) business. The proceeds of the asset sale were $2-million (U.S.) and are subject to final adjustments.

In addition to these proceeds, CSPC will retain responsibility for four solar power construction portfolios that are or close to substantially complete. It is expected that these portfolios will achieve final completion before the end of 2017. While most of the revenue related to these portfolios has been recognized, CSPC expects to collect accounts and notes receivable in excess of $5.4-million (U.S.) on final completion. Once the requirements of the remaining portfolios are complete, CSPC will permanently cease its solar power EPC business.

"In October of 2016, we announced our intention to divest our two power segment businesses. The sale of our solar EPC business completes the first part of this task, and we maintain our intention to divest of our off-grid solar power business," said John Simmons, chief executive officer. We intend to use the proceeds of these divestitures, together with cash in hand, to invest in the growth of our strategic lighting and signals businesses organically and by way of acquisition."

The proceeds of the sale of business, together with the collection of all amounts owing on retained projects, will generate in excess of $7.4-million (U.S.).

Alexander Capital Group Inc. advised Carmanah in the sale of its solar EPC business.

About Carmanah Technologies Corp.

Carmanah designs, develops and distributes a portfolio of products focused on energy-optimized light-emitting diode solutions for infrastructure. The company manages its business within three reportable segments: signals, illumination and power.

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