Mr. Chuck Myers reports

QUARTERHILL REACHES FAVORABLE MEDIATION AGREEMENT, STRENGTHENING TOLLING CONTRACT

Quarterhill Inc. has successfully resolved a previously disclosed contract renegotiation with one of the company's tolling customers.

The resolution, reached through constructive mediation, reflects the shared commitment of both Quarterhill and its customer to fostering a strong, long-term partnership. Together, the parties chose to reset the relationship on positive new terms, laying the foundation for a healthier, more collaborative and mutually beneficial future.

Pending final approval by the customer's governing body, the resolution includes a one-time payment to Quarterhill in third quarter of 2025 to address historical cost-recovery matters. In addition, the agreement secures improved payment terms, enhanced performance standards and a structure that raises annual revenue while simultaneously reducing costs associated with the previous contract. Importantly, the new terms also provide a termination-for-convenience provision covering a three-year operations and maintenance period, with financial incentives that support stronger margins and reward exceptional performance.

"This outcome represents an exciting step forward for Quarterhill and our valued customer," said Chuck Myers, chief executive officer of Quarterhill. "By working together in good faith, we've not only resolved past issues but created a framework that strengthens our relationship, improves predictability and sets the stage for long-term success. This agreement underscores the trust our customers place in Quarterhill and highlights the company's pro-active approach to building sustainable partnerships. We're proud of this resolution and energized about the opportunities it creates for both sides as we continue to deliver smarter, safer and more efficient transportation solutions."

This resolution marks a significant milestone in Quarterhill's operational transformation, offering greater clarity for shareholders while reaffirming the company's commitment to strong customer relationships and forward-looking growth.

About Quarterhill Inc.

Quarterhill is a leading provider of tolling and enforcement solutions in the intelligent transportation system (ITS) industry. Its goal is technology-driven global leadership in ITS, via organic growth of our tolling and enforcement businesses and by continuing an acquisition-oriented investment strategy that capitalizes on attractive growth opportunities within ITS and its adjacent markets.

We seek Safe Harbor.