Mr. Tony Busseri reports

ROUTE1 ANNOUNCES Q2 2023 FINANCIAL RESULTS

Route1 Inc. today released its financial results for the three- and six-month period ended June 30, 2023.

As of Aug. 25, 2023, there are a total of 2,275,000 options currently outstanding under the stock option plan.

Business and operations metrics

Further to the company's prior news releases, shareholder calls and webcast presentations, Route1 has communicated operating metrics that it believes assist in establishing whether the company's business model is generating shareholder value. The company is adapting to an increasingly difficult competitive environment and is achieving success in the automatic licence plate recognition technology component of its business. It is the company's goal to demonstrate success through cash flow generation that provides for impactful debt reduction and improved returns on invested capital, and additionally justifies scaling the business model.

Further in today's update, the company has added a third metric, quarterly fixed costs.

Operating results commentary

• Route1's second quarter operating performance was negatively impacted by reduced levels of transactional revenue generated by device and appliance sales, and a continued reduction in MobiKEY software application revenue.
• The MobiKEY application software and Route1's next generation cloud-based secure remote access and user authentication offering, MobiKEY X, will continue to see a revenue reduction throughout the 2023 year.
• The MobiKEY technology's successful path forward is being significantly challenged by stiff competition from cloud based enterprise offering providers, specifically Microsoft 365, to secure the United States Department of Defense's user mobility and remote access requirements.
• Route1 is having success in growing its turnkey engineering services business model that leverages video capture technologies.
• Route1 is building a larger "book" of recurring revenue generated by technology life-cycle maintenance and support contracts/end users as shown in Benchmark B herein.
• Route1's second half of 2023 will see an increase in activity and associated gross profit related to the new business model. The company expects that each of the third and fourth quarter's gross profit, as described in Benchmark A, should be in excess of $1.0-million (U.S.).

Business update conference call and webcast

Route1 will not hold a shareholder conference call and web cast to discuss second quarter 2023 results but will after the release of its third quarter 2023 results in late October, 2023.

About Route1 Inc.

Route1 is an advanced North American technology company that empowers its clients with data-centric solutions necessary to drive greater profitability, improve operational efficiency and gain sustainable competitive advantages, while always emphasizing a strong cybersecurity and information assurance posture. Route1 delivers exceptional client outcomes through real-time secure delivery of actionable intelligence to decision makers. Route1 is listed in Canada on the TSX Venture Exchange under the symbol ROI.

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