Mr. John Simmons reports

CARMANAH REPORTS SECOND QUARTER 2018 RESULTS

Carmanah Technologies Corp. has released its second-quarter financial results for the period ended June 30, 2018. Currency amounts are in U.S. dollars unless otherwise noted and are for Carmanah's continuing operations which exclude the operating results from the Company's Power Division segment which was divested by way of two separate transactions in 2017.

In the second quarter of 2018, Carmanah generated revenues of USD $13.8 million, up USD $1.6 million or 13.1% over the second quarter of 2017 revenues of USD $12.2 million. The increase in revenues was attributed to stronger performance by the Company's Signals segment, which generated revenues of USD $12.9 million, up USD $1.7 million or 14.6% over the second quarter of 2017 revenues of USD $11.2 million. The Illumination segment generated revenues of USD $1.0 million, which were unchanged from the second quarter of 2017.

Gross margin percentage in the second quarter of 2018 was 42.9%, up 0.2% compared to the same period in 2017. The reduction in gross margins resulted from sales mix in the quarter.

Core operating expenditures in the second quarter of 2018 were USD $5.5 million, up from USD $4.2 million in the second quarter of 2017. The increase was due to the amortization of acquired intangible assets from Vega and the overall increase in expenses associated with the acquisition. The integration of Vega into Sabik Marine is scheduled to complete in the third quarter of 2018 after which operations in New Zealand will cease.

Net loss in the second quarter of 2018 was USD $0.1 million which was down from net income of $0.5 million for the same period in 2017.

Carmanah management relies on Adjusted EBITDA1 (a non-IFRS measure) to gauge financial performance. In the second quarter of 2018, the Company generated Adjusted EBITDA of USD $1.7 million, down 5.2% from USD $1.8 million in the same period in 2017. A table reconciling net income and Adjusted EBITDA is included in this release.

"Our company continued to progress in the second quarter during which new orders received totalled USD $15.1 million, up more than 20% from the second quarter of 2017," said John Simmons, CEO. "While our overall order growth was positive, some contracts expected to be received by our subsidiary, Sabik Offshore, are being delayed until 2019. This will impact Sabik Offshore profitability in 2018 which should rebound as new contracts come online in 2019."

Mr. Simmons continued. "I am also pleased with the progress being made by Sabik Marine as it completes the integration of New Zealand based Vega Industries that we acquired in 2017. By the end of the third quarter we expect to cease operations in New Zealand after which we will achieve the expense reduction synergies planned for at the time of acquisition."

Highlights for the quarter are provided below:

                     Three months ended June 30,Six months ended June 30,
(US$ thousands)            2018            2017       2018         2017 
       
Revenue                    13,803          12,201     28,745       23,328      
Gross margin %             42.9%           42.7%      42.7%        43.8%       
Core operating expenditures(5,501)         (4,249)    (10,787)     (8,318)     
Net (loss)/income          (136)           509        458          1,118       
Adjusted EBITDA1           1,685           1,777      3,511        3,422       

Financial Condition at June 30, 2018 compared to December 31, 2017

• Cash and cash equivalents of USD $10.2 million, down USD $1.6 million from USD $11.8 million, primarily due to repayment of our term loan.
• Working capital of USD $22.8 million, up USD $1.6 million from USD $21.2 million

Complete set of Financial Statements and Management Discussion & Analysis

A complete set of the second quarter ended June 30, 2018 Financial Statements and Management's Discussion & 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 audited consolidated financial statements for the year ended December 31, 2017, including the notes thereto.

About Carmanah Technologies Corporation

Carmanah designs, develops and distributes a portfolio of products focused on energy optimized LED solutions for infrastructure. Since 1996, we have 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. We manage our business within two reportable segments: Signals and Illumination. The Signals segment serves the Airfield Ground Lighting, Aviation Obstruction, Offshore Wind, Marine, Traffic and Telematics markets. The Illumination segment provides solar powered LED outdoor lights for municipal and commercial customers.

We seek Safe Harbor.