Mr. Jerry Trent reports

PRINCIPAL TECHNOLOGIES ENTERS R&D AGREEMENT WITH OXFORD AND DIVESTS OF MAJORITY OWNERSHIP OF E&E CRO CONSULTING

Principal Technologies Inc. has entered into a research and development agreement with the University of Oxford to develop and test the thermal sensor, the subject of the company's long-term licence with Oxford (see press release dated April 8, 2025), for, among other applications, cancer diagnosis and treatment.

"We are excited about the development phase of the thermal sensor," said Principal chief executive officer Jerry Trent. "There are at least seven proposed medical applications of the Oxford proprietary heat-sensing technology and the successful development of these applications has become a main focus of our organization going forward."

Principal also announces that, after a review of its operations and the increasing focus on its own research and development activities, it has decided to reduce its 80-per-cent stake in its Austrian subsidiary, E&E CRO Consulting GmbH, to 20 per cent and, accordingly, has agreed to the sale of the commensurate number of shares of E&E CRO to the management of E&E CRO for its nominal value.

E&E CRO advises health care companies on how to efficiently conduct clinical studies and the company remains committed to the continued progress of E&E CRO.

Completion of the E&E CRO disposition is subject to the receipt of all requisite corporate and regulatory approvals, including the acceptance of the TSX Venture Exchange.

About Principal Technologies Inc.

Principal Technologies is a global health care technologies investor. The company is engaged in building a portfolio of profitable health care technology companies with a focus on those with global distribution potential that have intellectual property capable of enhancing medical treatment quality, cost-efficiency, optimization of the patient pathway and implementation of point-of-care technologies.

We seek Safe Harbor.