Mr. Chris Cosgrove reports

COMPREHENSIVE HEALTHCARE SYSTEMS ISSUES CEO SHAREHOLDER LETTER HIGHLIGHTING STRATEGIC PROGRESS AND GROWTH OUTLOOK

Comprehensive Healthcare Systems Inc. today issued a shareholder letter from chief executive officer Chris Cosgrove.

Dear fellow shareholders

Over the past year, Comprehensive Healthcare Systems has undergone a meaningful evolution. We have sharpened our strategic focus, strengthened our operating model and advanced our position as a scalable SaaS platform business. Today, we are executing with greater discipline, enhanced capabilities and a clear path forward. As a result, we believe CHS is now positioned at an important inflection point-moving from restructuring to growth.

Our core growth engine is our proprietary Novus 360 platform, a modular, end-to-end solution designed to manage the full life cycle of health care and retirement benefits administration. With Novus 360, we serve a diverse set of clients, including self-insured employers, labour unions and third party administrators, delivering critical infrastructure that enables eligibility management, claims processing, compliance and member engagement. Our platform is built to address the complexity of today's health care ecosystem through automation, integration and data-driven insights.

Importantly, our scale and operational capabilities continue to strengthen. Today, we support over one million members across health and retirement plans, while automating a significant portion of claims processing and managing substantial transaction volumes annually. Our business model is highly recurring in nature, supported by long-term client relationships and strong retention rates. This combination provides both visibility and durability as we continue to grow.

We are also seeing increasing validation of our strategy in the market. CHS has secured approximately $35-million ($25-million) in total signed contracts across more than 20 clients, reflecting both the strength of our platform and the trust we have built with our partners. The recent signing of a five-year contract with Amalgamated Life Insurance Company represents a meaningful milestone for the company and underscores our ability to compete for and win larger, enterprise-scale opportunities. Just as important, our existing client base continues to expand its engagement with us, reinforcing the value of our solutions.

We operate in a large and evolving market that is being shaped by structural tailwinds. In the United States, the increasing complexity of health care administration, the continued shift toward self-funded plans and rising regulatory requirements are driving demand for modern, technology-enabled solutions. We estimate our total addressable market (TAM) to be in the range of $4-billion (U.S.) to $6-billion (U.S.) U.S. health care benefits administration software market, spanning union funds, TPAs, self-insured employers and adjacent segments such as pensions (source: Mordor Intelligence). We believe Comprehensive Healthcare is well positioned within this landscape, offering an integrated platform.

Our growth strategy is straightforward and focused. First, we are expanding within our core markets by deepening relationships with existing clients and increasing our share of wallet. Second, we are extending into adjacent verticals, including self-insured employers, pension administration and other health care stakeholders that require scalable administrative infrastructure. Third, we are selectively pursuing partnerships and acquisition opportunities that enhance our capabilities and accelerate our go-to-market efforts. This disciplined approach allows us to scale efficiently while maintaining operational control.

Innovation remains central to our long-term differentiation. We are continuing to invest in enhancing the Novus 360 platform with advanced capabilities, including the integration of artificial intelligence across workflows, analytics and decision support. These investments are designed to improve efficiency, reduce administrative friction and deliver better outcomes for clients, providers and members. We believe that embedding intelligent automation throughout our platform will be a key driver of value as the industry continues to evolve.

From a financial perspective, we are building a business with strong recurring revenue characteristics and meaningful operating leverage. Based on our current trajectory, we are targeting an annualized recurring exit revenue run-rate of approximately $10-million (U.S.) by the end of 2026. The company expects the direct cost associated will be in line with its historical average with gross margin expected to be in the range of 65 per cent to 70 per cent and EBIDTA (earnings before interest, taxes, depreciation and amortization) expected to be around 10 per cent.

As we scale, we expect to see continued improvement in profitability. While we remain disciplined in our growth investments, we are confident in our ability to deliver sustainable, long-term value.

Looking ahead, our ambition is clear. We aim to grow signed contracts supported by continued execution across our core markets and expansion initiatives. We believe that as we deliver on this strategy, there is significant potential for value creation, particularly given the current valuation gap between Comprehensive Healthcare and comparable companies in the broader SaaS (software-as-a-service) and health care technology sectors.

While we have made meaningful progress, we remain in the early stages of our growth journey. Our focus is on execution -- continuing to strengthen our platform, expand our client base and deliver measurable results. We are building a company designed for scale, resilience and long-term relevance in a rapidly changing health care environment.

On behalf of the entire leadership team, I would like to thank our shareholders, clients and employees for their continued support and confidence. We are excited about the path ahead and remain committed to executing our strategy with discipline and transparency.

Sincerely,

Chris Cosgrove

Chief executive officer

About Comprehensive Healthcare Systems Inc.

Comprehensive Healthcare Systems is a corporation incorporated under the laws of the Province of Alberta and is the parent company of Comprehensive Healthcare Systems Inc. (Delaware). The company is a vertically integrated software-as-a-services (SaaS) company focused on digitizing health care with Healthcare Benefits Administration solutions, providing reliable and high-volume transaction-capable systems. The company's state-of-the-art Novus 360 Healthcare Welfare and Benefits Administration (HWBA) SaaS platform is used by clients for all aspects of health care benefits administration (including self-financed employers, providers and labour unions), providing health care administrative software and technology-enabled services.

We seek Safe Harbor.