Mr. Adam Zaghloul reports

NTG CLARITY LETTER TO SHAREHOLDERS: 2024 WRAP-UP

NTG Clarity Networks Inc. management has shared a letter with shareholders.

Dear shareholders,

With the new year comes time for reflection, and 2024 has been a transformative year for NTG Clarity. Decades of strategic investment have met significant tailwinds in our key market to deliver remarkable results. While we know there is still much more to achieve, this year represents a pivotal moment in our journey, showcasing the strength of our long-term commitment to growing our business in Saudi Arabia and across the region.

For more than 20 years, we have methodically built NTG's foundation in Saudi Arabia through three strategic pillars:

• Deeply entrenched relationships in Saudi Arabia:
  • We have cultivated trusted relationships with IT (information technology) professionals across all levels, many of whom now hold leadership and key decision-making roles in some of the largest financial, telecom and government organizations in Saudi Arabia. These relationships are driving our revenue growth today and going forward.
• Education and training programs to build our talent pipeline:
  • For decades, we have partnered with Egyptian schools to upskill and train engineering and IT professionals, creating a robust talent pipeline. This strategy reached a new milestone in 2023 when we partnered with the Egyptian Ministry of Education to establish two NTG schools dedicated to training future professionals. This is allowing us to rapidly scale to handle the demand and continue providing outstanding service to our customers.
• Investing in the future:
  • We have expanded our training programs within Saudi Arabia to develop the technical and business leaders of tomorrow. These investments are already compounding the relationship network effects that have been central to our growth.

The success of our strategy is evident in our 2024 results. Through the first nine months of the year, we have grown our team by 67 per cent to become a team of over 1,000 employees, and achieved the following financial results showcasing value created for the company and our shareholders:

• Significant revenue growth: Increased revenue to $38.9-million, compared with $19.5-million through the same nine-month period in the prior year. This 100-per-cent year-over-year growth puts us on track to reach our target of $55-million in revenue for 2024.
• Sustained momentum: Fourteen consecutive quarters of LTM (last-12-month) revenue growth, with eight quarters setting company all-time records.
• Improved profitability: Increased adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to $8.0-million through the first nine months of the year, a 127-per-cent increase year over year. Increased net income through the same time period to $6.9-million, a 270-per-cent increase year over year.
• Fortified balance sheet: Completed an equity raise for $4.8-million in net proceeds, strengthening our balance sheet to sustain record growth.

Our underlying KPIs (key performance indicators) are also showing the strength of our strategy, product market fit and the excellent value that our customers get from our services. Through the first nine months of the year, we saw:

• Large and longer contract wins: We signed three major contracts valued at $80-million over three years, including our largest contract ever. This puts our backlog of unbilled purchase orders and contracts on hand at over $100-million as of Nov. 30, 2024, with visibility out over three years.
• Increase in new customers: We have seen a 17-per-cent increase in customers driven by our relationships with key decision makers at some of the largest Saudi organizations.
• Strong customer satisfaction: With 87-per-cent customer retention and 57 per cent of customers increasing their level of service it is clear they recognize the quality and value NTG provides.
• Accelerating interest in software products: In and leading up to 2024, our largest professional services clients have signed on to work on proofs of concept and projects to implement our proprietary NTGapps software. We look forward to continued opportunities to grow this line of business which brings with it revenue and margin expansion.

Two thousand twenty-four has been an extraordinary year, with every financial and operational KPI trending in the right direction. We are energized to carry this momentum into 2025 and beyond. We deeply appreciate the support and confidence of our shareholders and are committed to introducing more people to the NTG story.

If you haven't already, I encourage you to explore our updated investor deck and video on the company's website. For any questions or further insights, please feel free to reach out to me at the e-mail address below.

Thank you for being part of this journey.

Sincerely,

Adam Zaghloul

Vice-president, strategy and planning

NTG Clarity Networks

adam@ntgclarity.com

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 IT solutions to large enterprises including financial institutions and network service providers. More than 1,000 IT and network professionals provide design, engineering, implementation, software development and security expertise to the industry's leading enterprises.

We seek Safe Harbor.