Mr. Geoff Clark reports

ACCELEWARE REPORTS RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2016

Acceleware Ltd. is releasing its results for the three months ended March 31, 2016 (all figures in Canadian dollars unless otherwise noted).

Acceleware continued to face very challenging market conditions in the three months ended March 31, 2016, caused by the persistent decline in the worldwide price of oil. Similar to the three months ended March 31, 2015, the company's customers have started the new year in a cautious manner, delaying and in some cases cancelling plans to invest in seismic imaging software, HPC (high-performance computing) consulting services, and RF (radio frequency) heating research and development. The caution, however, is not as pronounced as it was in 2015, and, as a result, Acceleware's revenue in the first quarter of 2016 increased by 35 per cent to $442,537, compared with $328,774 in the first quarter of 2015. Revenue was 56 per cent lower when compared with the $1,016,424 recorded in the most recently completed quarter ended Dec. 31, 2015. The decrease, compared with the fourth quarter of 2015, was due to significant decrease in seismic imaging product revenue.

Despite the increase in revenue, Acceleware's total comprehensive loss increased to $365,018 in the first quarter of 2016, compared with $357,834 in the first quarter of 2015, primarily due to higher foreign exchange loss caused by an appreciation of the Canadian dollar relative to the U.S. dollar at the end of the first quarter of 2016. Total comprehensive income for the fourth quarter of 2015 was $158,746, due to the higher revenue noted above.

Acceleware continued to develop its patent-pending RF heating technology in the first quarter of 2016. A patent application was recently filed protecting a concept that directly applies to Alberta's oil sands deposits. It is believed that the new concept can assist in improving the economics and environmental impact of oil sands production. The company is now looking for industry and government partners to further develop this and previously developed technology.

At March 31, 2016, Acceleware had $234,574 in working capital, compared with Dec. 31, 2015, when it was $585,117. Cash and cash equivalents have decreased since Dec. 31, 2015, from $361,957 to $237,858, as at March 31, 2016. At March 31, 2016, the company had $31,900 (Dec. 31, 2015, $37,160) in combined short-term and long-term debt in the form of finance leases. The reduction in working capital is related to a decrease in trade and other receivables, and lower cash, both caused by lower revenue. During this challenging time, the company actively manages its cash flow and investment in new products to match its cash requirements to cash generated from operations. In order to maximize cash generated from operations, the company plans to continue to focus on high-gross-margin revenue streams, such as those from software products, consulting services and training, focus on selected core vertical markets, minimize operating expenses where possible and limit capital expenditure.

The outlook for Acceleware's oil and gas technology business in 2016 remains uncertain. As the company's customers grapple with the prolonged collapse in the world price of oil, the company has seen caution among its customers resulting in delayed purchase decisions at the beginning of the year, similar to the beginning of 2015. More recently, the company has seen increased demand for both seismic products and RF heating solutions. The company has taken steps to further steps to reduce operating and capital expenditures during this time of uncertainty.

Additional information, including the unaudited financial statements for the three months ended March 31, 2016, the management's discussion and analysis related thereto, the audited financial statements for the year ended Dec. 31, 2015, and management's discussion and analysis relating thereto, is available on SEDAR.