Mr. David Robbins reports

SECOND QUARTER AND YEAR-TO-DATE FISCAL 2023 RESULTS AND CONFERENCE CALL FOR INVESTORS: AUGUST 3, 2023, AT 11:00 AM EDT

Omni-Lite Industries Canada Inc. has released results for the second quarter of fiscal 2023. Full financial results are available at sedar.com.

Second Quarter Fiscal 2023 Highlights

• Revenue of US$ 3.0 million, Up 2 4 % Year-over-Year
• Adjusted EBITDA of US$168,000, Representing the Highest Results Since March 2020
• Free Cash Flow of US$ 162 , 000, A n I ncrease of US$717,000 Year-over-Year , or an Increase of US$157,000 on an Adjusted Free Cash Flow Basis
• Bookings of US$ 3.5 million, a 12 % Increase over Q1'202 3
• Backlog of US$4. 7 million, a 1 4 % Increase over Q 1 '202 3
• Ended Quarter with a Strong Balance Sheet Cash of US$1.3 million, and Remain Debt-Free

YTD Fiscal 2023 Highlights

• Revenue of US$5.8 million, Up 19 % Year-over-Year
• Adjusted EBITDA of US$89,000, a n Increase of US$950,000 Year-over-Year
• Free Cash Flow of US$ 372 ,000, an I ncrease of US$1. 1 M Year-over-Year , or a US$521,000 Increase in Adjusted Free Cash Flow Basis

Second Quarter Fiscal 2023 Results

Revenue for the second quarter of fiscal 2023 was approximately US$3.0 million, an improvement of 24% as compared to the second quarter of fiscal 2022. The increase in revenue was due principally to increased demand for commercial aerospace fasteners and electronic components, as well as the production of a number of new product lines. Adjusted EBITDA (1) was US$168,000, an improvement of approximately US$655,000 as compared to $(487,000) in the second quarter of fiscal 2022 and the highest results since March 2020. The year-over-year improvement in Adjusted EBITDA ( 1) was a result of better utilization of fixed costs, including direct labor, as well as a reduction in S,G&A and indirect labor related expenses. The Company generated Free Cash Flow (1) (and, Adjusted Free Cash Flow (1)) of US$162,000 in the second quarter of fiscal 2023, as compared to Free Cash Flow (1) US$(555,000) in the second quarter of fiscal 2022 and Adjusted Free Cash Flow (1 ) US$5,000 in the second quarter of fiscal 2022. Second quarter of fiscal 2023 bookings were US$3.5 million, as compared to bookings of US$3.4 million in the second quarter of fiscal 2022, an increase of 3%, and representing a strong 1.16 book-to-bill ratio. Omni-Lite ended the second quarter of fiscal 2023 with a backlog of US$4.7 million, an increase of 27% over the second quarter of fiscal 2022.

The Company's liquidity position remains strong due to our disciplined approach to management of our cost structure, working capital and capital spending. As a result, the Company ended the second quarter of fiscal 2023 with approximately US$1.3 million in cash and no indebtedness outstanding, which is consistent with both the first quarter 2023 and the fourth quarter of fiscal 2022.

Omni-Lite reported Other Income of US$374,000 in the fiscal second quarter 2023 related to the increase in share price of California Nanotechnologies Inc. ("Cal Nano"). Omni-Lite owns 6,004,970 shares of Cal Nano, representing approximately 0.4 shares of Cal Nano for every Omni-Lite share outstanding. Cal Nano recently reported record revenue for the quarter ended May 31, 2023, and its management indicated that it expects another record revenue quarter for the period ending August 31, 2023.

Management Comments

David Robbins, Omni-Lite's CEO, stated "Omni-Lite Industries continued fiscal 2023 with a solid second quarter with a revenue increase of 24% year-over-year. We reported our strongest Adjusted EBITDA in over two years, and we are hopeful that the improvements in this critical performance measure will continue over the balance of 2023. I am pleased with the improvement in bottom-line performance driven by high efficiency in metal forming fastener production and electronics products. We expect to realize further improvements in our bottom line as Casting components production in commercial aerospace and defense components increases, along with ongoing increases in demand for forming and electronic components. Our backlog of firm orders continues to improve ending the second quarter of fiscal 2023 at US$4.7 million, the majority of which we expect to convert to revenue throughout the remainder of fiscal year 2023. Lastly, our Q2'23 bookings performance of increases in mature products and new engineered products is another indicator to us for continued revenue growth."

Investor Conference Call

Omni-Lite will host a conference call for investors on August 3, 2023, beginning at 11:00 A.M. (EDT) to discuss the Second Quarter Fiscal 2023 results and review of its business and operations. To join the conference call, 888-437-3179 in the USA and Canada, or 862-298-0702 for all other countries. Please call five to ten minutes prior to the scheduled start time. A replay of the conference call will be available 48 hours after the call and archived on the Company's investors page of the Company's website at www.omni-lite.com for 12 months.

About Omni-Lite Industries Canada Inc.

Omni-Lite Industries Canada Inc. is an innovative company that develops and manufactures mission critical, precision components utilized by Fortune 100 companies in the aerospace, defense, industrial and energy industries.

We seek Safe Harbor.