Mr. Gali Bar-Ziv reports

EVERYBODY LOVES LANGUAGES REPORTS FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2023

Everybody Loves Languages Corp. has released its financial results for the first quarter ended March 31, 2023. All figures are reported in Canadian dollars and are in accordance with international financial reporting standards unless otherwise noted.

Operational highlights

• On-line English language learning:
  • Completed product development of English For Success+, integrating AcadeMe Plus, a Hollywood film-based film language learning program;
  • Initiated two pilot projects in two academic institutions for English For Success+;
  • Continued the development of AcadeMe Junior, a Hollywood movies-based learning for young learners with an expected delivery of third quarter;
  • Began the certification process and training of testing centres in Ecuador to allow them to administer the English language learning assessment tests.
• Print-based English language learning:
  • Expanded existing market for PEP Primary English program into one additional province in China;
  • Initiated the development of content and material for its grade 3 textbooks for China market.

Corporate highlights

• In March, 2023, the company engaged Red Cloud Securities Inc. to provide services as a market maker in compliance with the policies and guidelines of the TSX Venture Exchange and other applicable legislation. Under the agreement, Red Cloud will receive a fee of $5,000 plus applicable taxes per month. The initial term of the agreement is three months from the date of execution with an option to renew.
• In March, 2023, the company granted 1.96 million incentive stock options to directors, officers, employees and consultants of the company, of which 800,000 options are granted to the officers and directors. The exercise price of these options is eight cents per share and to be vested quarterly over 18 months. The options have a five-year term from the date of the grant.

• Revenue for the first quarter ended March 31, 2023, totalled $247,047 as compared with $159,146 in Q1 2022.
• Operating and development expenses for the quarter ended March 31, 2023, totalled $632,105 compared with $411,399 in Q1 2022.
• Net loss for the quarter ended March 31, 2023, totalled $422,835 or one cent loss per share (basic and fully diluted) based on 35.6 million shares as compared with a net loss of $334,176 for 2022 or one cent loss per share (basic and fully diluted).
• Loss before amortization, share-based payments, depreciation, finance charges and taxes was $529,752 compared with $307,758 in 2022.

"Everybody Loves Languages focus has been on developing its unique Hollywood-based language learning offering, including a full solution for young learners called AcadeMe Junior. Initial tests and presentations have been promising and our expectations of releasing it in the third quarter is on track. We continue to expand our sales for our digital solutions and aim to have a full K-12 offering by the end of the year. This will allow us to market our solutions to schools, high schools and universities," said Gali Bar-Ziv, president and chief executive officer of Everybody Loves Languages. "We continuously pursue strategic partnerships to expand our reach and gain market expansion for the upcoming years."

The interim condensed financial statements for the quarter ended March 31, 2023, and management discussion and analysis are available SEDAR.

About Everybody Loves Languages Corp.

Everybody Loves Languages is an edtech language learning and content development company, empowering language educators to easily transition from traditional teaching methods to digital learning by integrating education, edutainment and technology.

The company provides on-line and print-based solutions through two distinct business units: Everybody Loves Languages Inc. and Lingo Learning Inc. Everybody Loves Languages is a state-of-the-art technology platform that delivers personalized learning experiences in classrooms and on-line. Its programs provide innovative software-as-a-service-based eLearning solutions, including on-line and off-line content, a learning management system, assessments, real-time reports, speech recognition technology, and white-label tools. At the same time, Lingo Learning is the content development arm and co-publishes print-based English language learning materials in China.

Everybody Loves Languages has established successful relationships with key government and industry organizations internationally, with a presence in Latin America and China, and continues to expand its product offerings and extend its market reach.

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