Mr. Andrew Caprara reports

SOFTCHOICE ANNOUNCES FIRST QUARTER 2023 RESULTS

Softchoice Corp. has released its financial results for the first quarter ended March 31, 2023. Softchoice will hold a conference call/webcast to discuss its results today, May 12, 2023, at 8:30 a.m. ET. Unless otherwise noted, all dollar ($) amounts are in U.S. dollars.

Q1 2023 Summary

• Gross profit increased by 10.6% to $74.2 million, from $67.1 million in Q1 2023, driven by a 20.1% or $8.1 million increase in Software & Cloud solutions which more than offset a decline in Hardware sales consistent with industry trends.
• Gross profit was negatively impacted by approximately $2.0 million in the quarter due to the strengthened U.S. dollar, specifically by the translation of gross profit generated in Canada into the Company's reporting currency of U.S. dollars.
• Gross profit in Q1 2023 increased by 13.6% or $9.1 million in Constant Currency compared to Q1 2022 driven by 23.9% growth in Software & Cloud in Constant Currency.
• Adjusted EBITDA increased by 45.9% to $14.5 million, from $10.0 million in Q1 2022, due to the increase in gross profit, partially offset by a 4.5% increase in Adjusted Cash Operating Expenses.
• Foreign exchange fluctuations had an immaterial impact on Adjusted EBITDA as the negative impact on gross profit was offset by a similar reduction in Adjusted Cash Operating Expenses.
• Income from operations increased to $9.6 million from $3.8 million in Q1 2022.
• Net income increased to $4.5 million from $3.7 million in Q1 2022.
• Adjusted Net Income increased by 53.5% or $2.5 million to $7.1 million from $4.6 million in Q1 2022, driven by the increase in Adjusted EBITDA.
• Adjusted EPS on a diluted basis increased by 71.4% to $0.12 from $0.07 in Q1 2022 due to the increase in Adjusted Net Income combined with a reduction in the total weighted average number of common shares of the Company (each, a "Common Share") outstanding, reflecting the Company's repurchase and cancellation of Common Shares under its Normal Course Issuer Bid ("NCIB") over the trailing twelve months ("LTM").

Vince De Palma, Softchoice's Chief Executive Officer, said:

"We recorded a solid first quarter led by strong growth in our public cloud and software solutions, and continue to prove our value to our customers by helping them enable software-driven transformation and optimize their IT spend."

Andrew Caprara, Softchoice's President & Chief Operating Officer, said: 2

"Our investments in selling capacity and technical capabilities and resources helped us continue to grow our customer base, while also creating deeper engagement with existing customers. Our foundation of software, cloud and services was resilient, and our strategic focus on the most in demand solution areas puts us in a strong position to continue taking market share in the future."

Dividends and NCIB Update 2

On May 11, 2023, the Board declared a quarterly dividend of Cdn. $0.11 per Common Share for the period from April 1, 2023, to June 30, 2023, to be paid on July 14, 2023, to shareholders of record at the close of business on June 30, 2023. The dividend to which this notice relates is an eligible dividend for tax purposes.

During Q1 2023, the Company repurchased and cancelled 561,334 Common Shares at an average price of Cdn. $17.61 per Common Share, under its NCIB program.

Supplementary Measures for the LTM period ended March 31, 2023

Revenue Retention Rate was 105%, illustrating strong sales growth with existing Customers

Gross profit increased by approximately 9.8% to $319.5 million from the prior LTM ended March 31, 2022, due to:

an increase in Customers to 4,799 as at March 31, 2023, an increase of 164, or 3.5%, over March 31, 2022

an increase in Gross Profit per Customer for the LTM ended March 31, 2023, to $68,000 from $63,000 for the LTM ended March 31, 2022

Adjusted Free Cash Flow increased by 28.8% to $76.7 million, or 89% of Adjusted EBITDA, compared to $59.6 million, or 87% of Adjusted EBITDA, in the prior LTM period

Adjusted Free Cash Flow was used as follows: (i) approximately 21% was used to pay dividends to shareholders, (ii) 52% was used for share buybacks under the NCIB, and (iii) the remainder was used primarily for cash taxes and interest payments.

Quarterly Conference Call

Softchoice's management team will hold a conference call to discuss our Q1 2023 results today at 8:30 a.m. (ET).

DATE: Friday, May 12, 2023

TIME: 8:30 a.m. Eastern Time

WEBCAST: https://app.webinar.net/Q9adRYERpYk

A link to the webcast will also be available on the Events page of the Investors section of Softchoice's website at http://investors.softchoice.com. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 90 days.

DIAL-IN: To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/3mggw3f to receive an instant automated call back. You can also dial direct to be entered to the call by an Operator: 416-764-8659 or 1-888-664-6392, Confirmation # 33864706

TAPED REPLAY: 416-764-8677 or 1-888-390-0541, Replay Code 864706 # (Available until May 19, 2023)

Capitalized Terms

Capitalized terms used in this release and terms we use to describe our IT solution types, including Software & Cloud, Services, and Hardware and sales channels including SMB, Commercial, and Enterprise, as well as other measures such as Customer, Gross Profit per Customer, Revenue Retention Rate, and Constant Currency, are described in the Company's Management's Discussion and Analysis of Financial Condition and Results of Operations for the quarter ended March 31, 2023 (the "Q1 2023 MD&A"), and/or our annual information form dated March 29, 2023 (the "AIF") filed on SEDAR (as defined below) and available on the Company's investor relations website http://investors.softchoice.com.

About Softchoice

Softchoice (TSX: SFTC) is a software-focused IT solutions provider that equips organizations to be agile and innovative, and for their people to be engaged, connected and creative at work. That means moving them to the cloud, helping them build the workplace of tomorrow, and enabling them to make smarter decisions about their technology portfolio. For more information, please visit www.softchoice.com.

We seek Safe Harbor.