Mr. David Watson reports

PLAINTREE SYSTEMS INC. ANNOUNCES STRATEGIC WIND-DOWN OF U.S. SUBSIDIARY, SUMMIT AEROSPACE USA INC.

Plaintree Systems Inc. intends to initiate an orderly wind-down of the business and operations of its wholly owned subsidiary, Summit Aerospace USA Inc. Following its closure, Plaintree will proceed with the liquidation of Summit's assets.

The primary reason for the decision is due to a material reduction in business from one of Summit's major customers, which business is unlikely to recover. This decision also reflects the company's continuing commitment to operational efficiency and strategic alignment. By streamlining its business and focusing on core growth areas, Plaintree aims to position itself for long-term success and value creation for shareholders.

In fiscal 2025, the revenue generated by the Summit Aerospace USA business was $2,408,450 and represented 10.1 per cent of Plaintree's consolidated revenue, and its net loss before income tax and other expenses was $416,058, representing 52.4 per cent of the consolidated net loss before income tax and other expenses. Summit Aerospace USA represents 11.7 per cent of Plaintree's consolidated total assets.

"This was not a decision we made lightly," said David Watson, chief executive officer of Plaintree Systems. "Summit Aerospace has contributed significantly to our journey, and we are proud of what our U.S. team has accomplished. However, after a careful consideration of the likelihood of future business, the decision is the correct one for Plaintree at this time. By completing this transition, it enables us to reallocate resources and pursue new opportunities for our continuing businesses with greater agility."

It is the current plan to totally cease Summit's operations on or about Aug. 15, 2025. The wind-down and asset liquidation will be conducted in a structured manner to ensure minimal disruption to employees, customers and stakeholders. Plaintree remains committed to transparency and will provide timely updates as the process unfolds.

About Plaintree Systems Inc.

Plaintree has two diversified product lines consisting of specialty structures and applied electronics.

The specialty structures division includes the Triodetic Group with over 40 years of experience, is a design/build manufacturer of steel, aluminum and stainless steel specialty structures such as commercial domes, foundations for unstable soil conditions and flood zones and for free-form structures, barrel vaults, space frames and industrial dome coverings, and Spotton Corp., a design and manufacturer of high-end custom hydraulic and pneumatic valves and cylinders.

The applied electronics division includes the legacy Hypernetics, Summit Aerospace USA and Elmira Stove Works Inc. businesses. Hypernetics was established in 1972, and is a manufacturer of avionic components for various applications, including aircraft anti-skid braking, aircraft instrument indicators, solenoids, high-purity valves and permanent magnet alternators. Summit Aerospace USA provides high-precision machining to the aerospace and defence markets. Its facility includes five-axis CNC precision machining of complex castings and large ring parts such as turbine and assembly shrouds as well as assembly and pressure seals. Summit will support requirements from concept, prototype and throughout production. Elmira Stove Works is a manufacturer of high-end heritage and retro-styled kitchen appliances under the brand names Northstar, Fireview and Heritage.

Plaintree's shares are traded under the symbol NPT.

Plaintree is publicly traded in Canada on the Canadian Securities Exchange (NPT) with 12,925,253 common shares and 18,325 class A preferred shares outstanding.

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