Mr. Brian Wilneff reports

ALPHA ANNOUNCES EXCEPTIONAL 3RD QUARTER RESULTS: POSITIVE NET INCOME AND 1500% REVENUE SURGE

Alpha Metaverse Technologies Inc. has released its third quarter financial results. All financial information contained in this news release is unaudited.

Alpha has achieved remarkable financial performance, surpassing $830,000 in revenues for the three months ended March 31, 2023, and reaching $1.1-million for the nine months ended March 31, 2023. A significant contributor to the company's financial success is the successful acquisition of a large retail metaverse contract with a multinational brand.

In addition, the company has expanded its offerings into additional verticals, including generative AI (artificial intelligence) and its gaming-as-a-service (GaaS) Mana platform. Mana is a powerful gaming platform which has the capability to enable customers to enhance user engagement and monetization.

Brian Wilneff, chief executive officer of Alpha, commented: "I am incredibly proud to announce that this quarter has been a landmark achievement for our company. We have not only achieved record-breaking revenues and net income, derived primarily from our 3-D content production, but we have also successfully introduced new business verticals and launched our centre of excellence for AI. Our expansion into GaaS and the launch of Mana have opened up exciting new opportunities for growth and innovation. These strategic moves showcase our commitment to diversification and staying ahead of market trends. I would like to express my gratitude to our exceptional team whose relentless efforts have made all of this possible. Together we are working to reshape the industry landscape and set new benchmarks for success. This outstanding quarter marks a pivotal moment in our journey as we continue to strive to create a prosperous future for our company, and deliver value to our customers and stakeholders."

Key highlights in the above:

• 1,500-per-cent increase in revenues with total revenues of $839,104;
• 1,800-per-cent increase in gross profits;
• 21-per-cent increase in gross margin percentage;
• 83-per-cent reduction in operating costs;
• Positive net income of $499,768;
• Positive EBITDA (earnings before interest, taxes, depreciation and amortization) of $181,000 after removing non-cash one-time items, including the gains realized on debt settlements of $307,023 among other adjustments;
• Increase in EBITDA of over $1.4-million.

Key highlights in the above:

• 930-per-cent increase in revenues with total revenues of over $1.1-million;
• 1,100-per-cent increase in gross profits;
• 18-per-cent increase in gross margin percentage;
• 82-per-cent reduction in operating costs;
• Decrease in net loss of over $6-million;
• Increase in EBITDA of 87 per cent.

Operational highlights:

• Establishment of a centre of excellence for AI in 3-D and content production, with a focus on developing cutting-edge AI technologies to improve the efficiency and quality of 3-D modelling, optimization and automated content production.
• Secured a contract with a multinational, category-leading brand based on the company's expertise in content production within the metaverse to showcase its products and services in an immersive and interactive virtual environment.
• Achieved increases in revenues and reduction in costs, and first-ever positive net income.
• Successfully resolved certain outstanding debts, leading to a reduction of $307,023 in current accounts payable.
• Negotiated a revised acquisition payment schedule with respect to the company's acquisition of Shape Immersive Entertainment, deferring the payment schedule for the remaining $400,000 payable and aligning this payment with positive cash flows from EBITDA or future financings. The remaining balance due by Alpha in respect of the acquisition of Shape as of the date of this press release is $125,000.
• Subsequent to the end of the third quarter, the company introduced Mana, successfully landing its first licensing agreement for Mana with ClashTV.

About Alpha Metaverse Technologies Inc.

Alpha Metaverse Technologies is a publicly traded company, holding a portfolio of assets in metaverse, gaming and generative AI. Operational units include: Shape Immersive, a full-service metaverse studio building the future of Web3 gaming and virtual retail experiences for Fortune 500 companies and beyond through 3-D, NFT (non-fungible token), XR (extended reality) and game production; Mana, a custom-built software-as-a-service solution and innovation lab that empowers partner companies to level up their community engagement by launching their own gaming platforms; and GamerzArena, a gaming platform that provides an e-sports ecosystem for all gamers. The platform provides video game contests for top titles where gamers can compete for cash and prizes. Alpha clients and partners include RTFKT, Olympics, Star Altas, Red Bull, Intel, TED and more.

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