Mr. Hamed Shahbazi reports

WELL REPORTS Q2 FY2018 RESULTS

Wellness Lifestyles Inc. has released its second quarter financial results for the period ended April 30, 2018.

"The second quarter of our fiscal year ended April 30, 2018, was the first in our company's history where we published results from our medical clinic operations," said Hamed Shahbazi, chief executive officer of Wellness. "We are very pleased with the medical clinic assets we purchased on Feb. 9, 2018, and their subsequent performance. We are extremely well positioned with a strong balance sheet and are focused on identifying and completing highly accretive acquisitions in the health care and digital health related marketplaces."

Second quarter financial and business highlights:

• Revenue from continuing operations was $1,919,194, a 2,089-per-cent increase compared with Q2 2017 revenue of $87,688 which was entirely from discontinued operations related with non-medical clinic operations. All revenues related to health care fees from continuing operations were from six medical clinics acquired on Feb. 9, 2018.
• Adjusted earnings before interest, taxes, depreciation and amortization from continuing operations were $31,846.
• Net loss from continuing operations was $148,801. When including results of discontinued operations, total comprehensive loss was $266,601.
• The company discontinued operations from legacy businesses Canada Yoga Inc. during the quarter and Shakti Yoga Apparel LLC subsequent to the end of the quarter.
• The company closed a $4.5-million brokered financing to finance the acquisition of six health care clinics in British Columbia, Canada.
• The company announced a non-brokered financing led by Li Ka-shing which closed subsequent to the end of the quarter and added $7,567,626 to the company's balance sheet to help finance future acquisitions and growth initiatives.
• During the quarter, Hamed Shahbazi was appointed as chairman and subsequent to the quarter on May 23, 2018, took on the role of chief executive officer. Mr. Shahbazi invested $2,047,603 as part of the most recent non-brokered financing.

                                      HIGHLIGHTS

                                                 Three months ended April 30
                                                       2018             2017

Revenue                                          $1,919,194               $0
Net (loss) from continuing operations              (148,801)        (145,595)
Adjusted EBITDA from continuing operations           31,846         (145,595)
Net comprehensive (loss)                           (266,601)        (178,234)

About Wellness Lifestyles Inc.

The company owns and operates primary health care facilities in Canada. The company's facilities engage 34 general practitioners who serve more than 240,000 patient visits per year including service delivery through telemedicine applications.

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