Mr. John Gillberry reports

QUARTERHILL ANNOUNCES UPDATE TO CREDIT AGREEMENT

Quarterhill Inc. has reached an agreement in principle with its existing syndicate of bank lenders led by HSBC Bank Canada on updates to the existing credit agreement with the company's subsidiary, Quarterhill ITS Inc. The amended credit agreement is expected to be finalized and effective by June 30, 2023.

As disclosed with the company's financial statements for the three-month period ended March 31, 2023, Quarterhill ITS was offside certain ratio covenants in the credit agreement. Under the terms agreed to in principle of the amended credit agreement, Quarterhill ITS will be granted a covenant relief period by the syndicate through Dec. 31, 2023.

Other terms and conditions to the amended credit agreement are customary for transactions of this nature.

"We are pleased to have reached this agreement in principle with our lenders and for their continued support of the business," said John Gillberry, interim chief executive officer of Quarterhill. "The amended credit agreement will provide us with flexibility as we execute on our ITS growth plan."

About Quarterhill Inc.

Quarterhill is a leading provider of tolling and enforcement solutions in the intelligent transportation system (ITS) industry as well as, through its Wi-LAN Inc. subsidiary, a leader in intellectual property licensing. The company's goal is global leadership in ITS through organic growth of the Electronic Transaction Consultants LLC (ETC) and International Road Dynamics Inc. (IRD) platforms and by continuing an acquisition-oriented investment strategy that capitalizes on attractive growth opportunities within ITS and its adjacent markets. Quarterhill is listed on the Toronto Stock Exchange under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF.

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