Mr. Paul Ghezzi reports

KONTROL TECHNOLOGIES PROVIDES CORPORATE UPDATE

Kontrol Technologies Corp. has provided a corporate update on its progress toward its 2023 strategic objectives.

"We are pleased with our progress and continued execution of our key strategic objectives for 2023," stated Paul Ghezzi, chief executive officer Kontrol Technologies. "Ongoing cost reductions, combined with organic growth, have brought us to positive net income from continued operations ahead of schedule. We continue to make good progress in deleveraging and rightsizing the balance sheet. The company has entered new growth markets in our emission analyzer business and will continue to scale into these markets as we head into 2024."

Consolidation and rebranding to Kontrol Building Solutions

The company's operations in the commercial building sector will be consolidated and rebranded into Kontrol Buildings as of January, 2024. As part of the consolidation, a unified platform delivering HVAC (heating, ventilation and air conditioning), air quality and real-time energy monitoring will be established. Under the rebranding, the company will continue to execute on its successful cost rationalizations as well as integrate all of the company's building solutions and technologies under one brand.

Emission business

The company will seek to expand its regulated emission business and will continue to operate under the well-recognized brand of CEM Specialities Inc. The company's emission platform has been expanding its offerings to include the regulated ethylene oxide market. Ethylene oxide (EtO or EO) is widely used across various industries for the production of solvents, detergents, adhesives, antifreeze, textiles and pharmaceuticals. Ethylene oxide is also present in sterility for cosmetics, fumigants and hospitals for sterility of surgical equipment.

Letter of intent to sell operating subsidiary

The company has entered into a letter of intent to sell its wholly owned operating subsidiary, Ortech Consulting, for approximately $6.6-million. The acquiror is a large U.S. integrator of environmental consulting companies. The transaction is anticipated to close prior to Dec. 31, 2023, and is subject to customary approvals and documentation, including the completion of an asset purchase agreement. Proceeds from the proposed sale would have an immediate impact in further accelerating the rightsizing of the company's balance sheet.

About Kontrol Technologies Corp.

Kontrol Technologies, a Canadian public company, is a leader in smart buildings and cities through IoT (Internet of Things), cloud and SaaS (software as a service) technology. Kontrol provides solutions and services to its customers to improve energy management, monitor continuous emissions and accelerate the sustainability of all buildings.

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