Mr. Michel Guay reports

ATW TECH INC. REPORTS FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2023

ATW Tech Inc. has released its results for the quarter ended June 30, 2023.

Highlights:

• The company generated revenues of $308,000, compared with $720,000 in 2022, a decrease of $412,000.
• Cost of sales totalled $325,000 in 2023, compared with $653,000 in 2022, a decrease of $328,000.
• Operating expenses decreased from $555,000 in 2022 to $455,000, a decrease of $100,000.

On June 21, 2022, the company announced the signing of two letters of intent to acquire complementary technology companies in the areas of data engineering, business intelligence, advanced analytics and artificial-intelligence-powered public safety software. On May 1, 2023, and with a final update on June 29, 2023, the company announced its intention to close the acquisition of one of these two companies by Aug. 31, 2023.

On April 14, 2023, the company announced a late filing of its consolidated annual financial statements following the change of auditor. On June 29, 2023, the corporation filed its annual audited financial statements, management discussion and analysis, and related attestations for the year ended Dec. 31, 2023. The general and extraordinary meeting of shareholders has been set for Sept. 15, 2023.

On June 29, 2023, the company partially completed a previously announced non-brokered private placement in the amount of $975,000 for an amount reduced to $725,000. The $725,000 non-brokered private placement was completed through the issuance of 14.5 million units at a price of five cents per unit.

Outlook

"The second quarter of 2023 was focused on transforming our business strategy," said Michel Guay, president and chief executive officer. Since the signing of the letters of intent and last updated on the transaction on June 29, 2023, the company has mainly focused these efforts on the acquisition of one of the two targets and intends to close its acquisition by Aug. 31, 2023.

The company and target management are already working together in partnership on certain files and have set up a transition team that operates constructively and effectively. "In a tightening financial market, we strongly believe in the closing of this transaction and believe it will be highly beneficial for ATW and target shareholders, its customers and employees.

"In pursuing its efforts to identify and execute strategic acquisitions, the company sees an opportunity in this acquisition to engage with our shareholders on the growth and future of ATW Tech as a whole," said Mr. Guay.

The information presented herein is a summary of the highlights. For additional information, please refer to the company's interim condensed consolidated financial statements and the management discussion and analysis for the three-month periods ended March 31, 2023, on SEDAR.

About ATW Tech Inc.

ATW Tech is a technology company and the owner of several recognized technology platforms such as VoxTel, Option.vote and Semeon. VoxTel specializes in telephone billing and alternative payment solutions for fixed and mobile lines. Option.vote offers a customized multimethod voting system for unions, political parties, professional associations, and anyone looking for a secure way to reduce their voting costs and improve their participation rate. Semeon is a highly accurate and flexible text analysis platform for customer reviews and uses a unique combination of machine learning and natural language processing (NLP) to discover significant trends in customer reviews across all channels.

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