Mr. Evan Brown reports

CARMANAH REPORTS THIRD QUARTER 2017 RESULTS

Carmanah Technologies Corp. has released its third quarter financial results for the period ended Sept. 30, 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 third quarter of 2017, the company generated revenues of $14.5-million (U.S.), up 28 per cent from Q3 2016 revenues of $11.3-million (U.S.). Signals revenues increased 38 per cent to $13.8-million (U.S.), partially attributable to the acquisition of Vega Industries Ltd. as described in the press release on Aug. 1, 2017. The company's offshore wind, marine and traffic verticals had strong year-over-year increases in revenues, while its remaining signals verticals had year-over-year decreases. Its illumination segment revenues decreased 50 per cent to $700,000 (U.S.) when compared with the same period in 2016. This decline resulted from the transition to the company's new EverGen product offering.

The net income in the third quarter of 2017 was $300,000 (U.S.), down from $1.1-million (U.S.) in the third quarter of 2016.

Carmanah management relies on adjusted EBITDA (1) (a non-IFRS (international financial reporting standards) measure) to gauge financial performance. In the second quarter of 2017, the company generated adjusted EBITDA of $2.4-million (U.S.), up 46 per cent from $1.7-million (U.S.) in the same period in 2016.

"In the third quarter, many important events came to fruition, including the sale of our Go Power! business, the acquisition of New Zealand-based Vega Industries and the launch of our substantial issuer bid," said John Simmons, chief executive officer. "Amidst these distractions, most of our operating businesses posted attractive revenue gains, maintained attractive product margins and collectively produced solid adjusted EBITDA (1)."

(1) Non-GAAP (generally accepted accounting principles) financial measures

EBITDA and adjusted EBITDA

This news release presents information about EBITDA and adjusted EBITDA, both of which are non-IFRS financial measures, to provide supplementary information about 2017 operating performance. Carmanah defines EBITDA as net income or loss before interest, income taxes, amortization, and non-cash stock-based compensation. Adjusted EBITDA removes unusual or non-operating items from EBITDA, such as merger and acquisition costs, restructuring charges, asset write-offs, and foreign exchange gains and losses. Carmanah uses these non-IFRS measures internally to make strategic decisions, forecast future results and evaluate its performance. EBITDA and adjusted EBITDA are not intended as a substitute for IFRS measures. A limitation of utilizing these non-IFRS measures is that the IFRS accounting effects of the non-recurring items do in fact reflect the underlying financial results of Carmanah's business, and these effects should not be ignored in evaluating and analyzing Carmanah's financial results. Therefore, management believes that Carmanah's IFRS measures of net loss and the same respective non-IFRS measure should be considered together. Non-IFRS measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable with similar measures presented by other companies. Readers should refer to the definitions and reconciliations section of the company's most recently filed MD&A (management discussion and analysis) for the three and nine months ended Sept. 30, 2017, for a more detailed discussion of these measures and their calculation.

                        HIGHLIGHTS FOR THE QUARTER
              (in thousands of U.S. dollars, except as noted)

                                  Three months ended Sept. 30     Nine months ended Sept. 30
                                     2017                2016         2017               2016         

Revenue                         $  14,508           $  11,316    $  37,836          $  37,028       
Gross margin percentage             37.4%               45.3%        41.3%              43.4%
Core operating expenditures (1)    (4,572)             (4,336)     (12,890)           (12,729)
Net (loss)/income                     318               1,122        1,436              2,837        
Adjusted EBITDA (1)                 2,440               1,668        5,862              5,709        

Financial condition at Sept. 30, 2017, compared with Dec. 31, 2016:

• Cash and cash equivalents of $32.3-million (U.S.), up $10.4-million (U.S.) from $21.9-million (U.S.);
• Working capital of $39.7-million (U.S.), up $18.1-million (U.S.) from $21.6-million (U.S.).

Complete set of financial statements and management discussion and analysis

A complete set of the fourth quarter ended Dec. 31, 2016, financial statements and MD&A is 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 audited consolidated financial statements 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, the company 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 two reportable segments: signals and illumination.

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