Mr. Bill Wignall reports

SANGOMA REPORTS Q4 AND ANNUAL RESULTS FOR FISCAL 2016

Sangoma Technologies Corp. has released highlights of its fourth quarter financial results and audited consolidated financial statements for the full year of fiscal 2016 ended June 30, 2016.

For the fourth quarter of fiscal 2016, sales were a record $6.10-million, 14 per cent higher than the same quarter last year and 15 per cent over the immediately preceding quarter. For the full year, revenue was $21.19-million, the highest in Sangoma's history and 30 per cent above last year.

                          FINANCIAL HIGHLIGHTS

                      Q4 FY 2016    Q4 FY 2015       FY 2016       FY 2015

Sales                     $6.10M        $5.34M       $21.19M       $16.32M
Gross profit              $3.75M        $3.57M       $14.41M       $10.97M
Operating expense         $3.83M        $3.01M       $14.02M       $10.04M
Operating
income (1)              ($0.08)M        $0.56M        $0.39M        $0.93M
Net income              ($0.16)M        $0.15M        $0.11M        $0.25M
Net earnings per
share (fully
diluted)                 ($0.005)       $0.005        $0.004        $0.008
EBITDA (1)                $0.19M        $0.73M        $1.43M        $1.64M
                        --------      --------      --------      -------- 

(1) Operating income and earnings before interest, taxes, depreciation 
and amortization are metrics used by the company to monitor its 
performance, and the definitions may be found in the accompanying    
management's discussion and analysis posted today at SEDAR.

"I'm very pleased this year, to see Sangoma achieve another important milestone, with revenue above $6-million this quarter and above $20-million annually, both for the first time," said Bill Wignall, president and chief executive officer of Sangoma. "The team has worked very hard during the past few years to transition the company from a single product line to a full telecom portfolio, now available in both cloud- and premise-based solutions. Sales of SaaS- or cloud-based services, along with software sales and support, now represent over 40 per cent of revenues. This is from a standing start just a few years ago, and all while the company has more than offset the decline of legacy products to deliver substantial net growth. I'm proud that we've done so while maintaining reasonable levels of EBITDA and generating positive operating cash flow during that period. While cash flow from operations was up year over year, our profitability this quarter is admittedly lower than I'd like. However, our primary focus has been on growth and investing in the launch of Sangoma's phones and cloud-based hosted PBX offering, all easily self-configured and leveraging the zero-touch-provisioning capability. I expect profitability to strengthen once again during the 2017 fiscal year, starting in Q1. Over all, I'm excited by the top-line growth, as well as our product portfolio, and satisfied with the $1.4-million in EBITDA this year as we seek to balance continuing growth with reasonable profitability and cash flow from operations."

Gross profit was $3.75-million for the quarter and $14.41-million for the year. Gross margin at 68 per cent for the year was in line with that for fiscal 2015.

Operating expenses were $3.83-million for the quarter and $14.02-million annually, up 27 per cent and 40 per cent, respectively, from fiscal 2015. These higher expenses result primarily from the foreign exchange impact of the stronger U.S. dollar, the staff and other spending in the companies acquired in January, 2015, that were part of Sangoma for the full 12 months of fiscal 2016 versus just six months in fiscal 2015, and the costs associated with the launch of Sangoma's Internet-protocol phones and cloud PBXact services.

Earnings before interest, taxes, depreciation and amortization were $1.43-million for fiscal 2016, down from $1.64-million in the prior year, and operating income was $390,000, down from the $930,000 in fiscal 2015, primarily due to increased operating expenses described herein.

Net income for the year ended June 30, 2016, was $110,000 (0.4 cenet per share fully diluted), compared with net income of $250,000 (0.8 cent per share fully diluted) for the year ended June 30, 2015.

Sangoma finished the year with a cash balance of $2.09-million, down slightly from the $2.52-million at the end of fiscal 2015 due to the payout of contingent consideration for the acquisitions. Cash flow from operations of $1.44-million this year was higher than the $860,000 generated in fiscal 2015.

President and chief executive officer, Mr. Wignall, and chief financial officer, David Moore, will host a conference call on Oct. 25, 2016, at 11 a.m. Eastern Daylight Time, to discuss the quarterly results. The dial-in number for the call is 1-800-319-4610 (international 1-604-638-5340). Investors are requested to dial in five to 10 minutes before the scheduled start time and ask to join the Sangoma call.

About Sangoma Technologies

Sangoma is a leading provider of hardware and software components that enable or enhance IP communications systems for both telecom and datacom applications. Sangoma's data boards, voice boards, gateways, PBX, and phone and connectivity software are used in leading PBX, IVR, contact centre and data-communication applications worldwide. The product line includes both hardware and software components that offer a comprehensive toolset for deploying cost-effective, powerful and flexible communication solutions.

We seek Safe Harbor.