Mr. Mike Pyle reports

EXCHANGE INCOME CORPORATION ANNOUNCES THE ACQUISITION OF MACH 2

Exchange Income Corp. has acquired MnM Aircraft Component Holdings Inc. (MACH 2) for a purchase price of $43-million (U.S.). The purchase price was funded through the issuance of $9-million (U.S.) in Exchange Income common shares to the vendor and cash in the amount of $34-million (U.S.) from the corporation's credit facility. MACH 2 will operate as a subsidiary of Regional One Inc.

The acquisition of MACH 2 materially accelerates Regional One's presence in the commercial (narrow and wide body jet aircraft) aviation aftermarket. Exchange Income's acquisition of Canadian North in 2025 expanded the corporation's fleet into the narrow body jet category, providing Regional One with a unique opportunity to leverage Canadian North's 737 asset base, data and market intelligence. The acquisition of MACH 2 provides Regional One with the necessary commercial expertise, asset knowledge and inventory to jumpstart its expansion into narrow body aircraft, the largest segment of the aircraft parts market.

Operating from Pompano Beach, Fla., MACH 2 participates in the commercial segment of the global used serviceable material (USM) market. The company maintains long-standing customer relationships and has a proven record of sourcing high-demand components across multiple aircraft families. MACH 2 does not target the regional segment of the market, resulting in less than a 5-per-cent overlap with Regional One's current business.

"Since acquiring Regional One in 2013, the R1 team has transformed the business through the development of industry-leading systems, processes and proprietary data capabilities," said Mike Pyle, chief executive officer of Exchange Income. "With our acquisition of Canadian North and access to its 737 fleet, we recognized a unique opportunity to expand into the commercial aviation sector. The combination of Regional One's systems and processes, MACH 2's industry knowledge and relationships, EIC's balance sheet, and Canadian North's aircraft assets and data puts us in an excellent position to accelerate our growth in the commercial USM market."

"Since founding MACH 2 20 years ago, we have seen data and access to capital become essential competitive advantages in the USM market," stated Matthew Murrin, president and founder of MACH 2. "The ability to leverage Regional One's proprietary data management systems and access to capital, puts MACH 2 in the best position to continue our expansion. I am excited to partner with EIC and Regional One as we work to build a leading commercial USM platform for decades to come."

"The global aircraft parts market continues to face supply-demand imbalances, driven by postpandemic production constraints and aging fleets worldwide," added Hank Gibson, president of Regional One. "Operators are increasingly relying on USM to support their operations. Matthew and his team have built an impressive commercial footprint, and the opportunity to combine MACH 2's strengths with Regional One's capabilities put us in an excellent position to capitalize on market tailwinds."

"Since EIC's acquisition of Canadian North, expanding Regional One's footprint in the commercial USM market has been a strategic priority," said Adam Terwin, CCDO at Exchange Income. "Regional One's deep connections in the industry enabled us to seek out the right partner, where their culture and values are aligned with our team. The MACH 2 group is well known to Regional One and we are excited to welcome them into the EIC family. In addition to the clear strategic merits of the transaction, the acquisition of MACH 2 satisfies EIC's investment requirements, including being accretive on a stand-alone basis to the shareholders of EIC on a historical per-share basis."

About Exchange Income Corp.

Exchange Income is a diversified acquisition-oriented company, focused in two segments: aerospace and aviation, and manufacturing. The corporation uses a disciplined acquisition strategy to identify already profitable, well-established companies that have strong management teams, generate steady cash flow, operate in niche markets and have opportunities for organic growth.

We seek Safe Harbor.