Mr. Chris Bursey reports

DIRECT COMMUNICATION SOLUTIONS ANNOUNCES INTERIM FINANCIAL STATEMENTS FOR Q3 2023

Direct Communication Solutions Inc. has released its interim financial statements for the three and nine months ended Sept. 30, 2023, and the corresponding management discussion and analysis on SEDAR+.

Direct Communication Solutions had revenues for the nine months ended Sept. 30, 2023, of $11.2-million (U.S.), compared with $18.2-million (U.S.) in 2022 (a decrease of 39 per cent over the same period as last year).

Significant highlights -- for the nine months ended Sept. 30, 2023:

• Entered into strategic agreement with CATrak Technologies Inc. to offer its Catalytic Converter Theft Prevention Solution.
• Successful collaboration between Epson and the company's MiFleet solution in the fight against cargo theft.
• Signed a five-year agreement with Alsco Uniforms, the world's largest uniform provider, to offer its AI (artificial intelligence) video telematics solution powered by VisionTrack.
• Partnered with VisionTrack to provide AI-powered video telematics and IoT (Internet of Thigns) solutions to the North American market.
• Partnered with Teltonika to provide IoT solutions in North America.

Gross margin for the period ended was 32 per cent for 2023 (29.3 per cent for 2022), representing $3.59-million (U.S.) gross profit ($5.3-million (U.S.) for the period ended 2022). EBITDA (earnings before interest, taxes, depreciation and amortization) was negative $1.79-million (U.S.) compared with $634,931 (U.S.) 2022 EBITDA.

Chris Bursey, chief executive officer of Direct Communication Solutions, highlighted the company's commitment to navigating the evolving landscape and fostering long-term sustainability.

In Q3 2023, Direct Communication Solutions reported notable progress in its software-as-a-service (SaaS) segment. The company's fleet management subscribers reached 22,202, reflecting an impressive growth rate of 22.33 per cent in active subscribers. Additionally, wireless data/connectivity subscribers increased to 31,424, marking a growth rate of 6.56 per cent. The cumulative total billable SaaS subscribers at the end of Q3 2023 reached an impressive 53,626, showcasing a comprehensive growth of 28.88 per cent over the same period.

While the Q3 financials underscore positive momentum in SaaS subscriptions, Direct Communication remains focused on adapting to market dynamics and refining its strategies for sustained growth. The company continues to leverage its expertise in fleet management and wireless connectivity to meet the evolving needs of its customer base.

In a strategic move that aligns with its commitment to meticulous planning, Direct Communication announces the decision to defer its stock exchange listing update to the coming year. This pro-active measure ensures optimal conditions for a successful listing, demonstrating the company's dedication to strategic foresight and positioning itself for future opportunities.

Direct Communication Solutions founder and chief executive officer Chris Bursey highlighted the positive market sentiment, sharing insights after the company's active participation in the 2023 Verizon Channel Partner Advisory Council. He expressed: "Our recent involvement reinforced our belief in the strength of collaboration within the industry. The event, bringing together key partners from diverse segments, underscored the influential role of partnerships. Productive meetings highlighted the resilience of these collaborations, emphasizing shared goals and strategies."

Mr. Bursey continued: "As we navigated through these sessions, the vitality of collaborations became evident, not only strengthening individual businesses but propelling the entire market forward. Direct Communication Solutions remains committed to delivering world-class solutions in this ever-evolving landscape. The positive energy witnessed at the Verizon Channel Partner Advisory Council fuels our confidence in the market's future, reinforcing our optimism and determination to contribute significantly to its continued growth."

About Direct Communication Solutions Inc.

Direct Communication Solutions is a technology solutions integrator focusing on connecting the Internet of Things. The company provides real solutions that solve real problems, offering software applications and scalable cloud services that collect and assess business-critical data from various assets. Headquartered in San Diego, Calif., Direct Communication Solutions is publicly traded on the OTCQX (under the symbol DCSX), the Canadian Securities Exchange (under the symbol DCSI) and the Frankfurt Stock Exchange (under the symbol of 7QU0).

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