Mr. Darrin Swenson reports

POWERBAND ANNOUNCES SECOND QUARTER 2023 FINANCIAL RESULTS

Powerband Solutions Inc. has filed its interim consolidated financial statements and management's discussion and analysis report for the three- and six-month period ended June 30, 2023. These documents may be viewed under the company's profile on SEDAR+.

Revenue for the second quarter of 2023 decreased to $497,549 in comparison with Q1 2023 revenue of $838,693. There were no new lease originations in the second quarter. Revenues were generated primarily from the servicing of the existing lease portfolio. During the second quarter management completed a review of certain additional lease contracts and has identified some lease contracts that may fall within the repurchase clause of the forward flow purchase and security agreement with the company's primary financing partner. As a result, the company has recognized a provision for expected loss on lease contracts for $8,785,772, thereby increasing the net loss for the quarter to $11,034,604.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss for the second quarter of 2023 has decreased by $533,750, in comparison with Q1 2023, due to further cost reduction measures initiated by the company.

Cash on hand as at June 30, 2023, was $5,243,895 compared with $10,299,414 as at Dec. 31, 2022.

The company continues to work with its primary financing partner to recommence the origination of leases. As a part of those discussions, in May, 2023, the company's subsidiary, Drivrz Financial, and the financial institution executed an agreement for the repurchase of an additional 32 vehicle leases, with a value of $1,222,547 ($923,374.07 (U.S.)). The total amount will be paid in equal instalments over a period of 24 months.

Following the comprehensive business reorganization of the company over the past year, management believes that it now has the right personnel in place and the company is in a sustainable operational position going forward. The company is currently completing the establishment of an in-house, customer-facing servicing department and should be able to migrate from a third party lease servicing provider by the fourth quarter of 2023.

The company will provide an update to shareholders on its discussions with its financing partner, and any other relevant information, when there is material news to report.

About Powerband Solutions Inc.

Powerband Solutions, listed on the TSX Venture Exchange and the OTCQB markets, is a financial technology provider disrupting the automotive industry. Powerband's integrated, cloud-based transaction platform facilitates transactions amongst consumers, dealers and financers. Powerband's transaction platform -- being trademarked under Drivrz -- is being made available across the United States.

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