Mr. Tony Busseri reports

ROUTE1 EXPANDS RECURRING OPERATIONAL RELATIONSHIPS WITH CITY OF DAVIS AND CITY OF SANTA BARBARA POLICE DEPARTMENT

Route1 Inc. has received purchase orders from the City of Davis, Calif., and the City of Santa Barbara Police Department with a combined pretax value of approximately $300,000 (U.S.).

The orders expand Route1's existing relationships with both municipal customers. In Davis, what began as a life cycle hardware replacement expanded into a broader relationship, including the city's conversion from Route1's legacy break/fix hardware support offering to its Comprehensive+ support and operational performance program. In Santa Barbara, a successful initial deployment has led to four additional mobile ALPR systems and expanded use of Route1 ABI, the company's operational intelligence platform.

Together, the transactions demonstrate Route1's land-and-expand strategy: use deployment and life cycle events to deepen customer engagement, align around operational outcomes, and expand recurring relationships around support, operational performance, data visibility and accountability.

Order highlights:

• City of Davis: sales order is to replace three legacy Genetec AutoVu SharpX mobile ALPR systems with SharpZ3 systems, together with in-vehicle technology, deployment services and a Route1 Comprehensive+ support and operational performance plan. Davis is converting from Route1's legacy break/fix hardware support offering to Comprehensive+, Route1's higher-value recurring support and operational performance program. The annual program includes Route1 ABI, on-site maintenance, priority technical support, life cycle co-ordination and operational optimization support;
• City of Santa Barbara Police Department: sales order adding four Genetec AutoVu SharpZ3 Overtime mobile ALPR systems, deployment and configuration services, preventive maintenance support and expanded use of Route1 ABI;
• The two orders illustrate different paths to deeper recurring engagement: a life-cycle-driven support conversion in Davis and a successful initial deployment leading to additional hardware and operational intelligence adoption in Santa Barbara.

City of Davis

Davis has been a Route1 customer for approximately four years. The city had been operating three older Genetec AutoVu SharpX systems under Route1's legacy break/fix hardware support offering, with relatively limited engagement. After the city's primary ALPR contact retired, Route1 re-engaged the account and worked more directly with new leadership, including the director and chief of police.

The original discussion centered on replacing aging equipment. As the engagement progressed, the conversation broadened to enforcement efficiency and performance, clearer governance, life cycle management, and a more pro-active operating relationship. The result was not simply a three-unit hardware refresh, but a conversion to Route1 Comprehensive+ once the new equipment is deployed. Comprehensive+ has already begun supporting the deployment and the city's current operating environment.

City of Santa Barbara Police Department

The City of Santa Barbara Police Department first deployed with Route1 in 2025. Following that initial implementation, continued engagement and strong delivery built confidence in both the Genetec technology and Route1's ability to support the system end to end. Since spring 2026, new city leadership has placed greater emphasis on parking enforcement performance, creating an opportunity to move beyond operating a mobile ALPR fleet toward using data to better understand enforcement coverage, officer productivity, compliance and the effectiveness of existing parking policies.

The latest expansion adds four Genetec AutoVu SharpZ3 Overtime systems and further embeds Route1 ABI into the police department's enforcement operation. Route1 ABI is being used to identify enforcement coverage gaps, measure performance, and improve visibility into how parking inventory, signage, policies and procedures are performing in practice.

Expanding existing customer relationships

The Davis transaction demonstrates how a hardware life cycle event can become an opportunity to re-engage an existing customer and expand into higher-value recurring services. The Santa Barbara transaction demonstrates the complementary land-and-expand path: deliver the initial deployment successfully, stay engaged, introduce additional operational value through Route1 ABI and earn the next expansion.

Route1's relationship in Santa Barbara now extends across multiple distinct parking and enforcement environments, including the police department, downtown Santa Barbara and the waterfront. Downtown, Route1 ABI has been used to build a more comprehensive inventory of parking assets and curb space, and provide insight into occupancy, dwell time and turnover. Along the waterfront, the operating focus includes compliance, visitor experience, parking performance and revenue opportunities. For the police department, the focus is enforcement coverage, officer productivity and operational effectiveness. Together, these deployments provide a common data and operational framework across different municipal missions.

"The important part of these orders is what happened around the hardware," said Dan Fuccello, Route1's president. "In Davis, a three-system life cycle replacement became a much broader operating relationship and a move from legacy break/fix hardware support to Comprehensive+. In Santa Barbara, successful delivery of the first deployment created the confidence for the city to add four more systems and expand its use of Route1 ABI. That is the model we are executing: deliver well, stay engaged, understand what the operator is trying to accomplish and earn a larger recurring role in the performance of the program."

About Route1 Inc.

Route1 provides operational intelligence and secure data solutions for public sector and critical infrastructure operators. The company's ABI platform supports structured intelligence and operational improvement initiatives across mobility, parking enforcement, public safety and smart infrastructure environments. Route1 trades on the TSX Venture Exchange under the symbol ROI.

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