Mr. Adam Zaghloul reports

NTG CLARITY ANNOUNCES LARGEST-EVER CONTRACT FOR WORK VALUED AT $53M CAD

On Aug. 28, 2024, NTG Clarity Networks Inc. signed a new three-year contract for a total of $53-million in new work. This is the largest-ever contract in NTG's history, with a gross margin of approximately 37 per cent.

The contract is to provide offshore digital transformation services for an existing customer in the government sector in the Middle East, based out of the company's Egypt offshore centre. Work will begin on Sept. 1, 2024, and will ramp up to full capacity by the end of the year. The company's team is already well under way with internal and external recruiting efforts to fill open positions as the contract ramps up.

To support this contract, NTG has also signed a lease to expand its office space for an additional floor in the same building along the Nile in Cairo, originally announced in August, 2023. This new office space effectively doubles the company's work capacity in this building (space for 250 total employees now) and is expected to be operational by Nov. 1. NTG still has the first right of refusal for leases of other floors in this building, streamlining any future expansion needed.

"It's incredible to see our contracts continue to grow larger in size and longer in duration with this largest-ever, three-year, $53-million contract," said Adam Zaghloul, vice-president, strategy and planning. "Our existing customers are consistently satisfied with the quality and pricing of our services and are committing to increasingly larger and longer engagements."

NTG strives to build close, mutually beneficial partnerships with its customers based on trust, professionalism, flexibility and transparency. Customers continue to choose NTG because of this focus, as well as its:

• Strong presence in the Egyptian, Middle Eastern and global markets for over 30 years, with an excellent reputation with its many Tier 1 enterprise customers;
• Extensive pool of experienced and committed professionals -- over 700 employed and a network numbering in the thousands;
• Hands-on training programs for new graduates and secondary-school students preparing them for today's job market, fully financed by NTG;
• Proven, well-documented outsourcing and offshoring model complete with all necessary processes and procedures.

Coming out of the second quarter, management had expected to update its guidance for 2024 of $50-million in revenue with a 10-per-cent bottom-line profit margin. This has been delayed due to the dynamic situation around the finalizing of this large contract. Management is still assessing the forecasts for 2024 and beyond and expects to be able to update guidance in the near future.

About NTG Clarity Networks Inc.

NTG Clarity Networks' vision is to be a global leader in digital transformation solutions. As a Canadian company established in 1992, NTG Clarity has delivered software, networking and information technology solutions to large enterprises, including financial institutions and network service providers. More than 700 IT and network professionals provide design, engineering, implementation, software development and security expertise to the industry's leading enterprises.

We seek Safe Harbor.