Mr. John Simmons reports

CARMANAH REPORTS FIRST QUARTER 2017 FISCAL RESULTS

Carmanah Technologies Corp. has released its first-quarter financial results for the period ended March 31, 2017. Currency amounts are in U.S. dollars unless otherwise noted.

All figures below, unless otherwise stated, are for Carmanah's continuing operations and exclude the operating results from the company's power business segment. The planned disposal was announced in a press release dated Oct. 11, 2016.

In the first quarter of 2017, the company generated revenues of $11.1-million (U.S.), down approximately 6 per cent from Q1 2016 which had revenues of $11.9-million (U.S.). The decline in revenues was attributable to overall minor revenue reductions in the signals segment, which was partially offset by a minor increase in the illumination segment revenues. Both the declines and increases were the result of project timing differences in the current and comparable quarter.

Net income in the first quarter of 2017 was $600,000 (U.S.), down from net income of $800,000 (U.S.) in the first quarter of 2016.

Carmanah management relies on adjusted earnings before interest, taxes, depreciation and amortization (a non-international financial reporting standards measure) to gauge financial performance. In the first quarter of 2017, the company generated adjusted EBITDA of $1.6-million (U.S.), down 16 per cent from $1.9-million (U.S.) in the same period in 2016. The variance is largely a result of lower revenues. A table reconciling net income and adjusted EBITDA is available on-line.

"Our businesses got off to a good start in the first quarter of 2017 with solid revenues and expected levels of profitability," said John Simmons, chief executive officer. "Also in the quarter, we completed the purchase of the EKTA-branded assets and business in Estonia, bringing our Sabik Marine subsidiary additional products and technology as well as closer relationships with important customers in the Baltic region."

Highlights for the quarter are in the attached table.

             
                        HIGHLIGHTS
              
                                Three months ended March 31 
                                      2017             2016

Revenue                           $ 11,127         $ 11,860
Gross margin %                        44.9%            44.4%
Total operating expenditures        (4,069)          (4,099)
Net income                             609              781
Adjusted EBITDA                      1,645            1,870

Financial condition at March 31, 2017, compared with Dec. 31, 2016:

• Cash and cash equivalents of $21.1-million (U.S.), down $800,000 (U.S.) from $21.9-million (U.S.);
• Working capital of $21.8-million (U.S.), up $200,000 (U.S.) from $21.6-million (U.S.).

Complete set of financial statements, and management discussion and analysis

A complete set of the first quarter ended March 31, 2017, financial statements, and management's discussion and analysis are available on Carmanah's corporate website. Both documents are also filed on SEDAR. The financial information included in this release is qualified in its entirety, and should be read together with the unaudited condensed consolidated financial statements for the quarter ended March 31, 2017, and the audited consolidated financials for the year ended Dec. 31, 2016, including the notes thereto.

About Carmanah Technologies Corp.

Carmanah designs, develops and distributes a portfolio of products focused on energy-optimized LED (light-emitting diode) solutions for infrastructure. Since 1996, it has earned a global reputation for delivering durable, dependable, efficient and cost-effective solutions for industrial applications that perform in some of the world's harshest environments. It manages its business within three reportable segments: signals, illumination and power.

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